Imagine doubling or tripling your sales without adding more salespeople or sending out more expensive proposals? That’s more sales – fewer costs – bigger profits.
Further imagine, if you are a salesperson, being able to double or triple your production without working any harder? Wouldn’t that generate two to three times more commissions for you?
Nothing makes leaders and salespeople happier than winning more sales without spending more time, money or wasting more resources on costly sales pursuits. And nothing makes salespeople happier than earning more money while working less.
What’s the fastest, smartest and best way to increase sales from existing salespeople?
Yes, it’s as simple as that. Stop losing and start winning more. How do you do that? Start with learning how to effectively analyze your wins and losses. What are your current sales win rates over the last twelve months?
Don’t you know? You’re not sure? Whether you’re the CEO, sales leader or salesperson, everyone must know with absolute accuracy the real sales win rates. If you don’t know the real sales win ratio, you don’t own it. If you don’t own something – you can’t change something.
“To optimize your future sales performance, you must understand your current sales performance.”
SALES WIN RATES are an essential data point for knowing how to maximize selling and optimize sales production (greatest results with least effort). What is a sales win rate? Sales win rates are the number of wins versus the number of losses a salesperson, or sales team, achieves during a specific time period. A period usually being a quarter or 12 months.
For example, if a salesperson works on five pursuits and wins two that would be a forty percent win rate. Acceptable, but not stellar. Sadly, most company real and scrubbed win rates are about 20% or one out of five.
CEOs, sales managers and salespeople make a huge mistake by not knowing their “real” sales win rates. When they do give me a number, we both discover it’s almost always highly inflated. Most salespeople believe their sales win rates are higher – usually twice – the accurate percentage. For example, not factoring in their ratio non-decisions and zombie deals (no progress in pipelines) as “losses” against their win rates, when they should.
From experience leading extensive win-loss reviews for thousands of sales pursuits around the world, here is an amazing statistic. 95% percent of all salespeople can double their sales win rates without working any harder or wasting more resources. Many can even triple or quadruple their existing win rates.
All they have to do is radically change their sales behavior. However, big change or what I call “performance transformation” is where the simple becomes the impossible. Real behavioral change is extremely difficult – especially if someone has had any success selling.
Why is it that salespeople never double or triple their win rates? The answer is because when they lose – they never put in the required effort to uncover the real reason – so they never fix the root cause. How do most salespeople think or behave when they lose?
With hundreds of case studies to prove it, when a salesperson loses, they rarely learn the real driver, so they never change. That means salespeople all over the world operate way below their potential. Companies lose millions to tens of millions because of low win rates. Salespeople lose huge commissions. For a salesperson with long careers, that could be a million dollars they will never see.
Acceptance. Most salespeople, after a few years in sales, start to accept an average win ratio (usually less than 50%) as the best they can do. They just work more sales opportunities rather than work on fixing what is really broken – their performance. That’s too bad because they could sell 2-3 times more without working any harder. Sales win rates should be over 50% and really be around 75% or greater.
Guiding leaders and sales teams through structured sales win and formal loss reviews, they discover, what they thought was the reason for losing, is almost never the real reason. When they win, they miss that reason too, so sadly they usually get it wrong win or lose.
Think about your last major sales loss. What was the “root cause” reason? When CEOs, sales leaders and salespeople can truly understand “why” they really lost, and they make changes, win rates can easily double.
Note: Losing on price is almost never the reason for a loss unless your pricing is far outside a competitive range. If the price was truly the root cause, then you might have a marketing, operations or pricing strategy issue and you’re not competitive.
In summary, doubling or tripling your sales win rates are the fastest and most cost-effective way to more growth with fewer costs. However, doubling sales win rates is easy to understand but quite difficult to do. You have to know exactly what to change and then change – do it differently. You must analyze losses and wins to know where, why and how to change. Don’t fall into the trap of, “Just work more deals”. That never improves win ratios.
1: Identify your “scrubbed and accurate sales win rates”
2. Set a sales win goal – double or triple what your current win rate is today
3. Identify top root cause for losing
4. Develop strategies and actions to never lose on that premise again
5. Watch sales results double and not work any harder
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