When you’re involved in growing your company’s sales, what truly measures your success is your capability of closing the deal.
This entails effective use of your resources, especially the latest digital and data analytics tools, in ensuring that you target the right customers with right sales approach.
Here are five reasons, which describe why most salespeople fail to close a deal:
1. Target prospects are wrong
This is the most basic mistake that you can make. Not all prospects are the same, and many business owners miss this crucial part of the sales process. Identifying the wrong prospect, or target market, from your company’s Customer Relationship Management (CRM), is an instant failure for a campaign that has not even begun.
Take this for an example - you’ve sent promotional emails for your brand new hair dryer to working, middle-class husbands in their late thirties. What do you think will be the result of this sales campaign?
However, such situations can be avoided by analysing data from your pool of prospects and asking questions such as:
- What is your target demographic?
- What do they do?
- What are their hobbies?
- How much are they earning annually?
- How do they get their information?
- How can you best reach your target market?
All of this information should be easily accessible through your company’s CRM.
Asking the right kinds of questions can assist your decision making process. Because your prospects already display characteristics of your ideal target market, there is a higher chance of a successful sales campaign.
2. Lack of proper follow-up
It is said that, to close a deal, a client should be contacted 8 to 12 times. But, most of the time, salespeople follow up only once or twice. The reason might be anything from laziness to time constraints or something personal. As a result, many deals are not closed because of improper follow-ups.
In such a situation, a constantly-updated CRM will help you properly follow-up your prospects. Their emails, transactions with your company, preferences, and online behaviors are outlined in detail in your CRM, which makes it convenient for you to set up email schedules with a proper approach.
3. Failure to identify the top customers
All customers are deserving of prime customer service, but there are some customers that deserve more than the typical. Who are these customers? Your top customers.
The Pareto Principle or the 80:20 rule, states that eighty percent of your profits are derived from twenty percent of your customers. With an efficient CRM, you can easily identify those 20% who are driving sales to your business, and give them the best service that they deserve.
By identifying your top 20%, you can use your resources more efficiently, ensuring that they continue to stay your top customers, eventually forming a long-term relationship with your company.
4. Using the wrong communication channel
Some customers prefer certain channels over others. Your customers may be primarily inclined toward using Twitter over Facebook, or e-mail versus phone calls. It’s best to know which medium they prefer to interact, because this saves you from wasting time (and money) contacting them through channels they may never even use. By knowing this, you can create better engagement with your customers, as well as make them feel comfortable and valued by your company.
5. Mismatch of marketing campaign
No marketing campaign has a one-size-fits-all solution. One of the best, yet highly underused, features of a CRM software is its ability to create appropriate marketing campaigns for the right customers. It does this by analysing data from customer profiles, such as their purchasing habits, and combining it with marketing campaigns that have high probability return rates.
Personalised marketing is an example of how you can use your data tools such as your CRM in creating marketing campaigns that match your customers. It can be as simple as adding their name to email subject lines, which has been proven to receive a 65% higher open rate.
If you are finding it hard to close a deal and generate sales, go through these reasons every time you miss the mark and find out whether one or more of them is the stumbling block to your success.
About the author:
Lucy Benton is a marketing specialist, a business consultant who currently works at College-Paper.org. She helps people to turn their dreams into the profitable business.