As a sales representative, you ought to lose some deals. As long as you are constantly winning clients, everything balances out. However, if you have started losing most of the sales deals which is keeping you from achieving your targets, it’s time to take a close look at the sales strategies and practices you are following. There are always concrete reasons why you are losing deals and it’s imperative that you figure those out those and correct them before you are in real trouble.
Closely analyze your lost deals and find out what went wrong and how to avoid such pitfalls in the future. Though there are dozens of factors that influence any given deal, here is a list of 6 common reasons that are usually responsible for turning deals aside:
Not Being Aware of the Ideal Target Customer
Most sales reps don’t spend enough time to research their ideal target customers and try to sell to everyone. This will never lead to a good close rate and would deeply affect your revenues at the end of the month. Don’t waste time selling to wrong customers. Analyze who will gain most from the value in your offer. Refine your target customer model every month to make it more collaborative and rewarding.
Lack of Personalization
Employing just one sales pitch for all your prospects is a major fault committed by sales reps. Every customer has their own and different reasons due to which they need to make a purchase. While your current sales pitch/tactic may be working for some, other prospects may require some more nurturing in order to push them further in the sales cycle. Therefore, it’s crucial to research your leads thoroughly and personalize the sales pitches so as to sound more appealing. Your solution must aim at catering to the specific needs of a prospect. Make use of their social media accounts, websites and go through relevant industry specific articles to find out about their past achievements, upcoming projects and anything else that can help you know them better.
Focussing Heavily on Price Advantages
It’s good to offer low prices to win more clients but you can’t count solely on low prices. Any of your competitors can conquer you in the price department. Instead, focus on conveying value to customers. Ensure that your solution delivers a better outcome even if it costs more. Always differentiate your offering and make the customers understand how your product will translate into better results for them.
Reiterating the features and capabilities of your product or service won’t do any good either. Understand their needs and pain points first, and then showcase your unique offering to blow the competition away.
Engaging in Activities other than Selling
Many salespeople spend a little time selling and that’s the main reason for their underperformance. Getting involved into project management, operations and backend activities keep them away from prospecting for new business. Focussing on customer service and post-sale support work consume a lot of their time as the relationship with the customer is at stake. Companies must allot these tasks to support staff and try to automate and standardize the operations of sales related functions such as billing unit and pre-sales etc.
When a sales team is disorganized, they will surely face challenges in closing deals and increasing the overall business of the company. With poor organization skills, it becomes difficult to follow up with prospects, identify new sales opportunities and close time-sensitive deals. In order to establish a connection with the prospect, the sales reps must timely and accurately conduct lead research and follow up. Being organized and having a clear sales strategy definitely aids in meeting your sales quota.
No proper Sales Follow-up
Sales representatives must follow up on every single lead to increase closing rates. Never ignore any lead and ensure that you follow-up in a timely manner.
According to The National Sales Executive Association “80% of sales are made on the 5th-12th contact”.
However in reality,
“Only 10% of sales people make more than 3 contacts with a prospect” and
“48% of sales people never follow up with a prospect”
You are wasting potential revenue opportunities if you are not following up on time. Following with your prospects shows that you care and reveals that you are serious and reliable. It also helps in converting your customers into loyal customers in the long-run.