Low closing rate: What is the reason?
The close rate reflects the percentage of potential customers who convert into actual customers who are willing to invest and use the business's products or services. This is an important indicator that helps managers evaluate the effectiveness of the sales team.
A high closing rate proves the productivity of the sales team, bringing more revenue and profit to the business. On the contrary, when the closing rate is low, managers need to review the current strategy and organize training courses to improve the sales closing skills of employees. At the same time, providing more knowledge about products and services helps the staff to advise customers better.
Some businesses today face low closing rates due to the following reasons:
- The sales process is not optimal.
- Lead quality is not up to standard.
- Lack of customer care and follow-up.
- Sales staff's rejection handling skills are not good
5 effective ways to increase closing rate
Apply CRM to sales process
CRM helps employees process customers according to standard procedures, including steps to check the completeness and accuracy of information, investigate additional lead profiles and contact for product consultation. Leads are processed within the allowed time and according to priority.
CRM software helps managers control the lead processing process by recording all customer interactions and communications such as calls, chats, and emails. Lead pursuit results are classified as potential, non-potential, or stopped pursuing.
With CRM solutions, administrators will have the perfect tool to solve the difficulties in customer management. The software allows monitoring the customer care process of employees through stored transaction history. The system also evaluates the success of employees based on the number of leads converted into customers or contracts.
Identify unique selling points and apply them thoroughly during sales.
In today's highly competitive environment, identifying and leveraging points of differentiation from competitors is a key factor in helping businesses attract quality potential customers, thereby increasing conversion rates and revenue.
By identifying and developing a USP (Unique Selling Proposition), businesses can create a sustainable competitive advantage, affirm a solid position in the market and stand out in the minds of customers.
A company's USP can include cost differentiation (cost leadership strategy), product quality or being a first-to-market product, among other unique factors.
To determine its USP or competitive advantage, businesses need to answer the following questions:
- What benefits does the company's product bring and how does it help customers solve problems?
- What makes your business brand different and unique compared to competitors in the market?
- What are the business communication messages sent to customers and are they engaging enough?
Optimize customer experience to increase closing rate
To increase your closing rate by optimizing customer experience, you can apply the following strategies:
- Improve online quotation interface: A clear, user-friendly interface will help customers easily grasp detailed information and promote the negotiation process to take place quickly, thereby making purchasing decisions faster.
- Highlight the value of the offer: To make customers feel the benefits, you should highlight the value of the offer on the quote. In addition, businesses can suggest suitable accompanying products to increase the order value, providing customers with more attractive options, making them feel cared for and consulted attentively.
- Simplify the payment process: A simple and convenient payment process will help reduce psychological barriers when customers decide to buy. Businesses should ensure that order confirmation and payment are easy by integrating various forms of online payment such as credit cards, bank transfers, Paypal...
- Storing and managing transaction information: Storing all information about exchanges, quotes and orders made helps customers feel secure and confident in the business's services. When customers can look up information at any time, they will feel maximally supported and easily control their purchasing process, thereby creating a positive and memorable shopping experience.
Apply cross-selling and up-selling
Cross-selling is a sales strategy that encourages customers to buy additional products or services related to or complementary to the main product they are buying or have already bought. The purpose of cross-selling is to increase the order value and improve the customer's shopping experience by suggesting products or services that can meet their needs. Instead of selling just one product, businesses can introduce more related products, helping to increase the closing rate without spending a lot of money on finding new customers.
Up-selling is a sales strategy in which a seller attempts to persuade a customer to purchase a more advanced version of the product or service they are considering. The goal of up-selling is to increase the value of an order by introducing upgrade options, additional features, or higher-value products. Up-selling encourages customers to purchase more advanced versions of a product or add related services, which increases the average value of each order.
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