I am about to share with you some information that most people don’t know about or don’t quite understand. Take it from me, sometimes you have to take a step back from your business or you are prone to miss simple solutions that can help explode your business exponentially. Many times, you can overlook situations that are so plainly obvious, once you are aware of them, and in other cases, they are among some of the best-kept secrets on the planet if you are not aware of them.
For example, did you know that only 2 percent of sales occur at the first sales call? People in business often hope and expect to do business the first time they meet a prospect. Many studies reveal that only 2 percent of sales occur when two sales partakers meet for the first time.
The 2 percent that does buy at the first meeting tend to be people that have researched the product and/or looked into the subject matter, and already know what they are looking for. If they meet someone that pushes all the right buy buttons and they come across well with the buying party, then business may be conducted and a close to the sale may take place. Now, this type of transaction is far from the norm. The other 98 percent of possible prospects would have to get to know you, like you, and trust you before they do business with you.
Now, for any novice sales person who believes they can go straight into a sales situation armed with amateur sales closes and close sales has been rudely misinformed. Professional salespeople get to know their prospects and try to understand their wants, needs, and desires. They build relationships and trust by engaging in on-going dialogue. Professional salespeople also follow up with their prospects. They don’t just peddle their products and services; they truly care about the people they are tending to.
There can be multiple reasons why people who could profit from your service, product, or knowledge do not buy. Many times the prospect has no reason not to buy whatsoever. The time could’ve been right, the price could’ve been right, the place could’ve, and your delivery could’ve been right, but the prospect still does not budge. Yea! This happens more times than not. The reality of it all is, sometimes the prospect is motivated to do business and somethings the prospect is not. Don’t try to make sense of it. You must become aware of this fact and understand the importance of following up. I have personally made sales calls years later with a prospect and closed the sale. Here is the kicker! The prospect called me. By you keeping in touch with the prospect it shows that you actually care about the prospect. You don’t come across as a hit and run salesperson.
I can’t tell you how many times that I have shown interest in a service or product and never heard back from the sales representative or company ever again. This sort of thing happens all the time without reason. There is research that shows that 20 percent of all sales leads are followed up on. That means that 80 percent of good potential leads never get a follow-up call or visit. Salespeople and their companies who don’t follow up and do nothing to build relationships and trust cannot and will not succeed in these tough economic times. Prospects nowadays are wanting to be sure they are making an informed decision before they commit to a purchase.
I have come to the realization that persistence pays off. There have been numerous studies conducted over the years that show the 80 percent of non-routine sales occur only after five follow-ups. Think about that for a second. It takes at least five continuous follow-up attempts after the initial sales contact before a customer says yes. That’s Right! Five Times!
There are some fascinating statistics on this subject:
1. 44 percent of salespeople give up after one “no’s.”
2. 22 percent of salespeople give up after two “no’s.”
3. 14 percent of salespeople give up after three “no’s.”
4. 12 percent of salespeople give up after four “no’s.”
That tells you that 92 percent of salespeople give up after 4 “no’s, and only 8 percent of salespeople ask for the order a fifth time. When you consider that 80 percent of prospects say “no” four times before they say “yes.” This means that 8 percent of sale people are getting 80 percent of the sales.
You will want to implement the five “no’s” follow-up strategy immediately!
Now that you are aware of these statistics this should stack the odds in your favor by conforming to a five “no’s” strategy, where you maintain contact with prospects until each one of them has said “no” at least five times. Every time you are in contact you have an opportunity to advance and build your relationship with them.
Keep in mind, businesses that practice the 5 “no’s approach will enjoy higher conversion rates than their competitors who don’t practice the 5 “no’s” approach.
Also, be mindful that 63 percent of people that request information on your company or products will not purchase anything from you for at least 3 months and 20 percent will take more than 12 months to buy. So, now you know how important it is to follow-up with your prospective and existing customers every 3 months or sooner. By doing this builds trust and professionalism and keeps you on top of your game. The main idea after your initial contact with your prospective and existing customers is not to call for orders, payments, and/or make appointments; it would be to build trust and rapport with them.
This simple approach could be key to your survival in these troublesome economic times. You now know what most people don’t know. It is up to you implement this approach and prosper.