My friend, Steve Elwell is a sales guru and he says speed is the most overlooked sales metric. His mantra is “the faster you close, the more you make.”
Why speed matters: Assume you close 10 new customers per year and the average profit is $10,000 per month. By closing each deal just one month sooner, you will add $100,000 per year in profit to the bottom line. Many sales take 6 months to one year to close, so trimming a month from the process is very doable.
How Can You Speed Up the Sales Process?
Improving your messaging and response time can trim valuable time from the process. When your prospective customer asks for a clarification or follow up information, provide that information immediately. In this case, time really is money.
Also, update your communication so that clarifications won’t be required for the next customer. You can’t do anything about customer delays, but you can improve your communication and engagement process to minimize miscommunication and improve closing time.
Lead Quality Matters
Another factor that will affect your sales velocity is lead quality. If the prospect found you, they likely understand your philosophy and service offering, which means you can close (or bail) much faster.
Sales leads that come from webinars, articles and videos close much faster than leads from cold calling and list buying. Developing your own tribe through content marketing will always lead to higher quality leads.
Consider measuring the time from lead capture to first sale. If your sales are closing faster, you most likely getting better.
Another great way to close sales faster is to focus on a market segment. Most 3PL sales people are afraid to focus. They believe that they will lose some deals by focusing so they leave their options open. They try to be everything to everyone. I understand the thought process – I have been there. It just doesn’t work.
Focusing on one market segment will lead to more sales. Deep dive into one market niche. Learn all you can and then generously share your knowledge. By becoming an expert in one market niche, you will attract prospects who are looking for an expert in their market niche.
Remember, prospects in every market are looking for experts, not sales people. Experts get better leads, close faster and make more money.
Let Me Help You Sell More
I help 3PLs, transportation and logistics companies sell more. I can help you build a lead generation system that will feed your sales team a steady flow of good quality leads. I can also help your sales team close more deals.
Click the link to register for my next course: Lead Generation and Sales Training For Transportation and Logistics Pros. For additional information about the course: Course Description
In addition to the public courses, I also provide customized lead generation and sales strategies for transportation and logistics companies. If interested, please contact me at [email protected]logisticsoflogistics.com or 517.375.0631.