subject: Dramatically Increase Sales With This Simple Tool [print this page] Dramatically Increase Sales With This Simple Tool
The B2B sales world is experiencing troubled times that seem just the opposite of what they were 10 years ago. Two of the more significant things we're witnessing are: 1. Fewer prospects converting to actual sales, and 2. Longer sales cycles. Budget consciousness, cutbacks, and "analysis paralysis" are major factors in these problematic sales symptoms. Today, people want to know if you can make more money for them, or save them a bunch of money out of the gate.
One of the particular problems for high-value consultants (those with average annual revenues per client of $15k-$75K) is that their value proposition can oftentimes be difficult to understand. Even with the onset of social media and all its "free samples," the real magic of what a worthwhile consultant can produce is barely visible until they actually have an opportunity to deliver their servicesat which point the astonished client has more "Wow!" moments than they could imagine.
If you're in this situation, here's something that might help you convert more prospects to clients while reducing the sales cycle.
About 10 years ago, there was a particular sales system that showed me something that was quite revealing for increasing sales conversions with relative ease. Here's the story and subsequent results.
An outsourced sales client had a tremendously valuable consulting service, but no brand name. The service price was approximately $30k per year, while the net profits they produced were 5x-10x annually. Tremendous value, right?
The problem is that as an unknown brand, we were only converting 1 out of 10 sales appointments for them, which was more than frustrating, it was pathetic. Upon further investigation, we found that our client used a very revealing diagnostic assessment, which they applied only after they secured a new client, to determine the before and after profile as a snapshot. They used that analysis to drive the new initiatives in their new client's organization for very nice profits.
We suggested moving the diagnostic out of the consulting process and into the sales process and charging a nominal fee for it. What happened next was nothing short of a sales turnaround. We started closing 4 out of 10 for the paid diagnostic, and 3 out of those 4 converted to sales. That one simple move tripled sales conversions and shortened the sales cycle by 45 days on average.
While dramatic, this system has been used repeatedly to produce 33%-50%, and sometimes up to 100%, more sales conversions in subsequent test results.
What follows are the best practices of such a system:
Quantify PAIN this is the most important ingredient in the system
Include KPI's when possible
Isolate the problems so they can be clearly addressed
Prioritize the solutions make it simple for the prospect to understand how you'll go about delivering the solution
Provide samples that are directly related to the prospect's solution in other words, tell them how you plan to alleviate their PAIN
Even though this is a proven system, I've found the reaction from numerous high-priced consultants to be counter-intuitive to their belief system. The most common reaction is, "Why would I provide my prospect with my blueprint for success and still expect them to become a client?"
This is a fair question, but what you'll find is that this is an opportunity to demonstrate your expertise while having the prospect provide clear information that quantifies the potential ROI. In the end, you'll find that prospects won't argue with their own data, and that's a huge advantage for you. When PAIN and ROI are combined, it's a solid business-winning formula.
Here are some things to consider about moving your diagnostic tool into the sales process:
There is a HUGE difference between theory and execution. What you already clearly grasp as a consultant is far different from what your prospects can actually execute.
Your prospect has already demonstrated a weakness in this specific area, so what are the chances they can move forwardeven with your clearly laid-out plan to effectively execute? There's less than 20% probability of them doing it well, which means they'll wind up calling you to work for themeven if they first attempt it themselves.
Implementing such a concept as the paid diagnostic in the sales process can actually pay for some, or all, of the cost to acquire new clients. It's pretty cool how this process alone can be a new revenue source for you while you're working toward generating new client revenue.
One last thing even though you might consider offering something for free, there's a tremendous benefit in getting them to pay for the proposed solution. I know this contrasts the new "free info" era, but they value what they pay for, and are more likely to take action based on a solid diagnosis and proposed solution far more quickly than what has been provided for free. Don't let this thought be lost as you consider better sales process options. You want to convert more sales, right?
