Prepare NOW to Close More Sales in 2023

The end of 2022 for me has gone out with a Big BANG! I thought by now I’d be able to clean my desk, get organized to start 2023 fresh. But no, my customers have heeded my warnings and are ordering for their January events now.

However, I did have some time to review my close rates for 2022. And I have to admit, I’m pleased overall. My existing customer close rate is about 80%. I am the primary vendor for some but not the only one for any of our customers. And for larger projects most still like to get bids or suggestions from multiple vendors. And for those larger projects our close rate is still pretty good at 70%.

Are you Tracking Your Close Rates?

Of course, as we all do, we are constantly in pursuit of new customers, and while our close rate for this segment isn’t quite as high it is still pretty good at 50%. I am actually surprised. I would have thought it was lower because we are not always the least expensive.

And many times it seems that new customer referrals are looking for the cheapest pricing on a particular item not necessarily looking for a new partner. And that makes a huge difference. I’ve spoken to many of my peers in the industry and this is the one area that many struggle with. Saying no. Wanting to get all the business they can, no matter the cost.

Just say No

As most of you know, I’ve been in business for more than 30 years and I have been in business so long because I know when to say no or not compete. Hence my close rates are where they are.

We don’t cut my margins to win a piece of business from an unknown possible customer. We don’t lead with price to any customers. Don’t get me wrong, we taut we are competitively priced, but we offer so much more than just the cheapest option.

If we get a referral we do try to help, but if they don’t fit our customer profile, we very well may refer them on to someone else.

What’s your Best Customer Profile

That’s one of the main ways of increasing your close rate, choose the right customers! Do you know who your best potential customers are? Are there particular industries you focus on? Size of company? Marketing budget minimums? Company growth potential?

Not everyone is comfortable calling on large corporations but there are plenty of businesses out there in all shapes and sizes. Find where you are comfortable. Determine your sweet spot for annual sales from each customer. Is it $5000 a year? $25000? $100000? More?  

Then try to stick within your customer profile. As you hone your customers you will find your close rates will increase.

Of course, it is nice to have a mix industries and size of customers. We prefer customers that spend at least $25000 a year, but we have many customers that spend over $250,000 per year. We have some customer that we work with every month and others that spend periodically for their events.

Ask Questions

Another reason our close rate is good is because we ask questions. Initially it is just the basics: who is the audience receiving the items; is there a theme or event; what quantity is needed; what is the budget range and delivery date. Seems pretty natural, but you may be surprised to find how many are afraid to ask. The more you know, the better your suggestions.

And if you don’t win, ask what they did purchase. Most are happy to share. We explain that we recognize we can’t always have the right solutions but the more we know the better we can be in the future. Sometimes it’s an ah ha moment of something that we should have thought of, but it is always insightful into what the customer prefers or dislikes.

Become Their Go-To Solution

If you’ve been in the industry for any length of time, then you know that not everyone is dedicated to supplying the best solutions. As you learn the likes and dislikes of your customers you can become their go-to solution provider.

I had lunch today with a long-time customer. She has taken me with her as she has progressed in her career to at least five different companies. We still work with them, but her firm currently is using an alumni member for a particular project. She said the difference between us is so apparent. She said we are so organized and keep them well informed. They find that they have to chase this other company for quotes and progress reports and have missed deadlines because the company didn’t remind them.

Be Pleasantly Persistent in Follow Up

So, sometimes closing a sale is because you are there for them. We try to be pleasantly persistent with all our outstanding quotes. Of course, some of the projects go to others, but some are just missed because the customer was too busy to make a decision. Another way to help them and increase your close rate. Follow up after the quote. If you’ve asked the questions, you know when they need the items so you can remind them it’s time to order.

Another great way to increase your close rate is to be their go to full-service resource. We encourage our customers to call us for anything. And I mean anything. We have a list of resources that we recommend for those projects that we are not a good fit for.

Be There for Whatever They Need

That way, no matter what they are doing, they will call you for help. And many times, it is something you may do but they don’t realize it. In our business, there are so many facets it's hard for customers to remember all that we do. Printing, packaging, awards, online stores, promotional products, apparel, food gifts, trade show booths, signage, fulfillment and kitting, warehousing, point of purchase displays and more.

You know what you can do, but do your customers? Naturally by being the complete resource for your customers your overall close rate will increase because ultimately, they won’t want to go anywhere else.