I’m hearing a persistent lament from B2B CEO’s. Their sales reps aren’t closing deals. They’re not talking about a lack of deals in the pipeline; they’re talking about the deals they’d forecast to close, but then died. Often they lost to the competition; just as often they lost to the status quo, that all-too-common state where the prospect decides to stick with their current situation and not purchase at all. Like an NFL football team that can’t score from the red zone, the rep couldn’t close the deal.
The CEO’s frustration is palpable and rightly so. Naturally the finger-pointing is squarely aimed at the reps. “Do they have the skills to close? Are they working hard enough? Do we have the right people on this team?” The answers are unknowable – equally important, unsolvable –because the root causes of the problem are hidden from view.
Thanks to years of conducting deal post-mortems, I’ve discovered common mistakes that impact a rep’s ability to close deals from the red zone. Yes, sometimes it is lack of effort, skill, or the inability to “wear well” with their prospects. (The latter point is not to be underestimated; many customers say their experience with the sales person was as important to their decision as the product or service.) More often, the deal didn’t close because it was never going to close. Its forecast was wishful thinking; the deal was lost long before the actual purchase decision. Here are the most common reasons why I see get reps blindsided:
- It was never an opportunity in the first place – it was merely a lead
- The rep failed to continuously qualify & gain commitment at each step of the sales cycle
- The prospect didn’t trust the rep’s ability to deliver on the promised outcome
- Engagement and commitment from the true buyer(s) was never gained
- The rep didn’t understand the buyer’s perception of risk
- The prospect’s real needs were never uncovered or resolved
The common denominator for companies that experience these problems regularly? Lack of sales process. CEO’s would never consider running their operations and financials without process, but astonishingly few establish process for their sales reps. Sales process makes it possible to identify a check list of strategies, tasks and milestones that, when accomplished, significantly reduce these common mistakes. Process creates a series of interim “closes” such that when the client is actually at the final decision point it’s a natural conclusion to say “yes.”
With process in place, there are far fewer:
- poor leads chased & wrongly forecast to close
- assumptions left un- validated
- risks misunderstood and unmitigated
- ghost stakeholders with unmet needs
- last minute selection criteria to sabotage the deal
Do a post-mortem on your deals that died in the red zone. Did your team make any of these common mistakes? If so, get serious about implementing sales process. It will allow you to diagnose your deals throughout the cycle, make the necessary adjustments and increase your close ratio. You won’t win them all, but you’ll win a lot more. And with solid data in hand, you can now answer the original questions about the skills and commitment of your reps.
What other mistakes do you see that sabotage the close? Have you implemented sales process? Did your close ratio go up? Please share your experiences for others to learn from.
If you found this post helpful, read my previous blog post “Surprising Reasons Why Sales Process Matters” for other ways that sales process can positively impact your sales results.| Categories: B2B Sales Strategy, Business Development, Sales, Sales Performance
Tags: B2B sales, performance metrics, revenue growth, sales management