Sunday, 24 August 2008

Turning Enquiries Into Sales

I was recently asked a question by a friend. He had a client who was awash with enquiries, but was struggling to convert them into sales.

And I had the answer. From bitter experience! A few years ago, I'd had the same problem.

And it's a really easy one. But first, this tip works best in business-to-business sales. It's really simple, but the answer is not always obvious.

It's all about conversion rates. The rate of enquiries you receive for example when you send a mailing. The conversion of those enquiries into appointments to meet the client. And the conversion of those meetings into sales.

Treat it like a relay race. To cross the line and clinch the sale, you have to keep hold of the baton. But it is so very easy to drop it.

The first baton change is often where it is dropped. You see too many people attempt to close the sale too far from the finishing line. The objective of the first baton change is to pass it to the next person without dropping it.

And that means making an appointment to see the prospective client.

Too often this goes wrong. And there are numerous reasons:

1) The person making the appointment is not skilled enough

2) Being overly-polite. Gently asking someone to meet can drop the baton. They will have numerous reasons NOT to meet you, even though they enquired!

3) Too many steps. For example, emailing the customer to ask them when they are free. This then needs them to think. And respond.

In our line of work, it is almost impossible to provide a quote for IT support, which reflects what the customer wants, without meeting them first.

So the first thing you need to consider are the reasons why you need to meet the prospect to take the enquiry forward. In our case, we need to look at their IT set-up. But think of your own reasons.

The second challenge is politeness and salesmanship. If an administrative assistant is tasked with making the appointment, they may fail simply because they lack the sales skills.

Remember, you are NOT selling your product or service at this point. Your objective is to make an appointment. So you have to sell the appointment.

If you don't have the staff with the skills, consider creating an email template which does the job for you. A message that will always deliver a consistent message and give reasons for the appointment.

And it needn't be long. Nor complicated.

In fact it needs to be polite, but assertive. And the most important element is that of suggesting the data and time of the appointment rather than asking when they are free.

This cuts out email or telephone tennis. It also does alot to cut out the most common objection - "I'm too busy". People say that because they feel busy, when their diary may be relatively empty.

So by suggesting a date/time, in a high percentage of cases, people will accept it if they are free.

We've found that around 60-80% will accept the first date offered. Those who don't, aren't saying no, they tend instead to either suggest an alternative, or state they are not free.

I'd suggest this format for either the telephone or as an email template:

Subject: Meeting following your enquiry

John,

Firstly thanks for your enquiry. To help us give you an accurate quote for our widgets, I have taken the liberty of booking you in to meet my colleague, Sue Smith, on Friday 29th August at 10AM.

During the meeting, Sue will run through a series of questions which will help us arrive at a proposal which perfectly meets your requirements.

If I don't hear, I'll assume you're free, and Sue will see you next week.

Many thanks etc

This simple approach works wonders. It is light and polite. And cuts out much of the telephone and email tennis which is generated by being too polite - i.e. asking when they are free.

It maximises the chance of a smooth baton change and passes it to your last-leg salesperson.

Your chances of converting enquiries to sales are therefore increased dramatically.


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7 comments:

Cath Lawson said...

Hi Ian - that's a good point. As you say, if you give folk time to think - they're sure to spend that time thinking of an excuse not to meet you.

With phone appointments I used to give two alternative dates and times and ask which they preferred.

Ian Denny said...

Cath,

You're right. When planning an appointment-making phone call, I recommend selecting 3 dates/times beforehand, but offer only one first.

That way if they can't make the first date offered, you're not scrambling around thinking about when you can do it.

This is so simple that people simply don't do it.

But it makes such a huge difference. If you use this, your sales can increase exponentially.

More importantly, you get a return on the investment you have made in getting the enquiry in the first place.

Each enquiry costs an awful lot of money.

It's easy to spend £500-1000 a month on marketing and get perhaps 10-20 enquiries per month.

So each enquiry costs £50.

When you look at the value of an enquiry from a pure cost point of view, it's like throwing £50 in the bin if you approach it lazily.

And if a sale is worth say £500 to you, the loss is increased dramatically for every enquiry you waste.

And that loss is magnified when you consider the lifetime value of a client - because the initial £500 sale is worth far more over the months or years you keep them as a client.

Over 3 years, I estimate the value of one of our clients at over £10,000.

So based upon say 5 enquiries a month, each year we potentially get £600,000 worth of enquiries.

So it's essential each and every enquiry leads to an appointment to maximise our chances of seeing a return.

Meredith said...

Ian,

First of all, I just read your blog for the first - and DEFINITELY not last time. The points you make are not different from what a teacher must do - sell the information at the class appointment. I could apply almost everything you said to my classrooms - of my 7th graders, my High Schoolers and my College Students!

Secondly, you may feel free to contact me re: any purchase information at clrt1929@gmail.com. Cath truly IS a friend, and I would NOT wish to profit from her blog. (Also, she'd probably charge me commission!) Don't worry, I'll tell her that myself! lol

Thanks,

Rita

BTW: I am NOT Meredith. I don't know how to change my own identity at your feed, but I "inherited" bloggrrl.com, and somehow can't get "Rita" in there!

Rita said...

Let's try this...

Rita

Barbara Swafford said...

Hi Ian,

This is great advice. Often a customer needs a nudge, and you've shared wonderful ways of doing so. I've also heard the reason a lot of sales aren't made is because we forget to close the sale (by asking for it).

louise said...

great advice Ian. I think having the expectation you will get the sale helps and one thing I always remember being told, as soon as you have the sale, stop talking!

Banjo Smyth said...

I think conversion often has a lot to do with the quality of the leads. Or more specifically the 'Relativity' of the leads :)

Thanks for you blog!

great reading

Cheers

Banjo Smyth