Inside Sales Tips: 5 Reasons Why Sales Reps Lose a Sale…
5 Reasons Why Sales Reps Lose a Sale
As a sales professional for over 15 years, I’ve seen a number of reasons why sales reps lose easy sales! Whether you’re a rookie in the profession or a veteran, every sales rep should review these tips to ensure you aren’t missing any easy sales.
Reason #1: The main reason why a sales rep loses a sale is simply because they don’t ask for the sale.
I’ve worked with different companies, across different industries, selling everything from shelving space in grocery stores, to communication devices, real estate, loans, websites, and professional services. The number 1 reason I have seen sales reps lose a sale is simple: They don’t ask for it!
Over and over again, I have seen very talented sales professionals who are able to:
Smoothly work their way past gatekeepers and get to the decision makers
Skillfully introduce themselves and their product/service
Masterfully pitch their product demonstrating its value to that prospects specific need
Tactfully guide their prospect through any and all objections, removing all barriers that stand in the way of the sale
Then what? They are missing the most important step, the close.
If you are not sure how to close I would highly recommended inviting the top revenue producing sales rep in your office to lunch (your treat) and have a list of questions prepared to ask them. Learn from the best! Ask them to give you 5-10 close examples they use that work.
Reason #2: Sales reps often fail in contacting leads in a timely manner.
I always assumed that contacting leads quickly was important but I had no idea how deeply vital this technique really was until I read the results of the “Lead Response Management Study”.
This study has recently been highlighted by Forbes, HBR, and Inc. Magazine.
The results of this study have proven revolutionary to the inside sales industry, specifically inbound leads. The study proves the following: the odds of contacting a lead if called within 5 minutes versus 30 minutes drops 100 times and the odds of qualifying a lead within the same parameters drops 21 times.
If you aren’t currently utilizing this best practice within your sales operation, I challenge you to try it out! You will be shocked by how many people answer the phone if you call them within five minutes of submitting their lead.
Reason #3: The sales rep is probably not asking for the sale enough times.
I had the unique opportunity to receive some of my initial sales training from a sales industry leader at the time, Robert F. Fillmore. On one occasion, I was able to spend an invaluable hour with Mr. Fillmore. His advice to me would prove to be more valuable than anything I ever learned in school, sales training, or any seminar. During the course of our meeting, Mr. Fillmore shared about a dozen items that have greatly impacted my skill set. Here’s one of them:
He asked me how many times had I attempted to close a deal before I moved on to another prospect. Trying to impress him I said, “Oh, at least twice, definitely.”
Apparently that wasn’t the answer he was looking for. He immediately started laughing, put his fork down on his plate, looked me directly in the eye and said, “If I was to share something with you that would more than double your income this year would you promise to do it?”
Obviously, I said, “Yes!”
Be the best in everything you do, he said. If you call every contact a minimum of six times, you will be more successful than most other reps in the industry.“If you are only attempting to close a deal twice before moving on, there is only an 8% chance that you will actually close that deal,” he said. “Of all closed deals, 96% happen after the fifth attempt.”
Reason #4: Reps are horrible at lead response management.
Multiple research studies have shown that as a whole, the inside sales industry is horrible at lead management. Perhaps the problem is that nobody knows what good lead management is. For example, a research study revealed (for the data set of prospects studied) a sales rep is 50% more likely to contact and qualify a lead on a Wednesday than a Tuesday. Also, a sales rep who calls at the end of the day, between 4 and 6 p.m. has a 114% greater chance of making contact than between 11 a.m. and noon.
Do you have the tools within your sales organization to track the progression of a lead through your pipeline based on when that lead was contacted, by day of the week and time of day? If not, you have to ask if you are maximizing the productivity of your reps and the time they spend on the phone.
The morale of the story is that the value of your sales agents’ time increases significantly if they are calling at the best times. Imagine the increase in closed leads just from using these best practices.
For the complete research, download the “Lead Response Management Study.”
Reason #5: Often, sales reps lack the proper skills and knowledge required to get sales.
Know Your Product and How to Sell It: Hand in Hand With Knowledge and Success
Skills and knowledge are vital to your success as a Sales Rep and fortunately these are both completely in your control! Some simple steps that make a big difference are:
Know how to sell your product well
When I first interviewed at InsideSales.com for a sales position, the CEO & co-Founder, Dave Elkington, told me that to effectively fulfill all of my responsibilities with his company I needed to know every aspect of the product that I was selling in order to be successful. Dave wasn’t kidding.
I would spend anywhere between one and two hours a night after work reviewing all the different aspects and technologies our product addressed. My friends and family would often ask why I would dedicate so much time to my company after hours especially since I wasn’t getting paid. What they didn’t understand was that while I may not have been paid for the hours I spent studying, the hours I spent definitely paid off. I was able to sell more, and earn more, than if I had not spent the time learning the product inside and out.
Get to know the product or services you sell so well that you become an expert. Trust me, it will all pay off in the end. If you know your product or service, your sales will increase dramatically. Remember, more sales equal more commissions. I recommend setting a certain amount of time aside each day or week to learning your product or service. You will be glad you did.
When you get to the point that you intimately know your product, you will know how to sell that product in various circumstances. If you know what your product does, you know what options it offers and which options to lead with or highlight based on the needs of your customers. Knowledge equals success.
