Why 8 percent of salespeople get 80 percent of sales
I’m about to share with you some information that most people don’t know or fully understand. Trust me, sometimes you have to take a step back in your business or you are prone to missing out on simple solutions that can help explode your business exponentially. Many times, you can overlook situations that are so blatantly 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 on the first sales call? People in business often expect to do business the first time they meet a potential customer. Many studies reveal that only 2 percent of sales occur when two sales associates meet for the first time.
The 2 percent who buy in the first meeting tend to be people who have researched the product and/or researched the topic, and already know what they’re looking for. If they know someone who pushes all the right buy buttons and gets along with the buying side, then business can be done and the sale can be closed. Now, this type of transaction is far from the norm. The other 98 percent of potential prospects would have to get to know, like, and trust you before doing business with you.
Now for any novice salesperson who thinks they can walk right into a sales situation armed with amateur closings and closing sales has been grossly 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 ongoing dialogue. Professional salespeople also follow up with their prospects. They don’t just sell their products and services; They really care about the people they serve.
There can be multiple reasons why people who could benefit from your service, product, or knowledge don’t buy. Many times the prospect has no reason not to buy anything. The timing might have been right, the price might have been right, the location might have been right, and your delivery might have been right, but the prospect still doesn’t have the budget. Yes! This happens most of the time. The reality of all this is that sometimes the potential customer is motivated to do business and other times they are not. Don’t try to make sense of it. You must be aware of this fact and understand the importance of follow-up. I personally made sales calls years later with a prospect and closed the sale. Here is the kicker! The prospect called me. If you keep in touch with the potential client, it shows that you really care about them. You don’t present yourself as a hit-and-run salesperson.
I can’t tell you how many times I’ve shown an interest in a service or product and never heard from the sales rep or company again. This kind of thing happens all the time for no reason. Research shows that 20 percent of all sales leads are followed up. That means 80 percent of good leads never get a follow-up call or visit. Sellers and their businesses that don’t follow up and do nothing to build relationships and trust cannot and will not succeed in these tough economic times. Prospects today want to be sure they are making an informed decision before committing to a purchase.
I’ve found that persistence pays off. There have been numerous studies over the years showing that 80 percent of non-routine sales occur after just 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 how it is! Five times!
There are some fascinating statistics on this subject:
1. 44 percent of salespeople give up after a “no.”
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 place the order a fifth time. Consider that 80 percent of prospects say “no” four times before saying “yes.” This means that 8 percent of the salespeople get 80 percent of the sales.
You’ll want to implement the five don’ts follow-up strategy right away!
Now that you’re aware of these stats, you should stack the odds in your favor by sticking to a five-no strategy, in which you stay in touch with prospects until they’ve each said no at least five times. . Every time you are in contact you have the opportunity to move forward and build your relationship with them.
Keep in mind that businesses that practice the 5 Don’ts approach will enjoy higher conversion rates than their competitors who don’t practice the 5 Don’ts approach.
Also, keep in mind that 63 percent of people who inquire about your company or products won’t buy 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 leads and existing customers every 3 months or sooner. By doing this, you build confidence and professionalism and keep you at the top of your game. The main idea after your initial contact with your potential and existing customers is not to call to place orders, payments and/or schedule appointments; would be to build trust and a good relationship with them.
This simple approach could be key to your survival in these tough economic times. Now you know what most people don’t know. It is up to you to implement this approach and prosper.