Know Your Closing Percentage
The Closing Rate is a benchmark to measure the performance of marketing activities. A business with a high Closing Rate is less dependent on advertising to drive traffic. As a new business owner you might have to guess at this number. Over time, this measure becomes more precise as you track and compare proposals and sales.
Improving your Closing Rate
Several factors can contribute to a low closing rate including misdirected advertising investment or improper sales techniques.
You can determine if advertising is properly directed by examining the quality of leads being generated. Are you attracting serious customers? Review your media mix. Be sure you are spending advertising dollars in the right places to attract the right customers.
Low conversion rate may also be indicative of poor sales presentations or proposals. Improve you "Closing Rate" by analyzing their sales process. Do you ask potential customers probing questions, and then really listen to their answers? Are you presenting a solution to the customer’s needs, or a standard pitch designed to be a "one-size-fits-all" solution?
Monitor Your Closing Rate
Watching this number over time will help you track your progress. Don’t just guess at how good you are, know for sure!
A twenty year veteran of corporate America, Lorraine Ball helps small business owners find a starting point for growth and change.
Lorraine can be reached at http://www.roundpeg.biz
