In the midst of a scenario marked by rising competitiveness, increasing sales conversion is certainly a challenge. A very common mistake here is to think that improvements can be made from simply knowing how much is sold. Yet, it’s fundamental to optimise the entire sales process, identifying problem areas so you can fix them in due time and continue to strengthen what’s working.
For that to happen, there are some metrics that act as markers for sales teams to obtain better results, such as negotiation time and conversion rate, among others. We’ll talk a little more about that in this blog post, and also list 3 tried-and-trusted tips to increase sales conversion.
1. Understand the sales cycle
In general terms, the sales cycle is made up of all the steps needed to sell a product or service. It begins with first contact with the client and ends with after-sales services. And when it’s all over, we start again at square one and begin prospecting new leads. That’s why it’s defined as a cycle.
The phases sales cycle are:
- Prospecting: the potential clients are defined
- Initial contact: through email, a phone call, digital content delivery, or however you think is best
- Qualification: since not all new leads are ready to buy at first, it’s fundamental to separate those that have the potential of continuing to the next steps
- Presentation: the moment in which the product or service is presented to the client
- Evaluation: negotiation stage which might include the seller’s waiting time
- Closing: the purchase takes place
After-sales: essential to check the client’s satisfaction and to build their loyalty
By understanding the sales cycle fully, a company can measure the productivity of its sales teams, sell well, and profit in equal measure, without exceedingly complex or long processes. It’s fundamental to comprehend, for example, the longest period of time for the team to get a response or to close a deal, evaluating the use of resources during the steps.
The logic is simple: a sell that demands several meetings and dinners with the client will not obtain the same profit for the company than one that’s closed with a simpler process.
2. Evaluate sales conversion rates
This is one of the sales metrics most deserving of your attention, since it evaluates the efficiency of the sales team, relating the opportunities generated to those that are, in fact, converted into sales. With this indicator, it’s possible to identify the best strategies to increase conversions and obtain more profit, defining through numbers actions that can be taken in that sense.
The conversion rates are calculated as follows: you just need to divide the number of purchases by the number of opportunities generated, multiplying the result by 100 to get a percentage.
You might be sitting there asking how conversion rates can be improved. Well, there are several strategies that can be applied by managers and sales teams, such as:
- Invest in training and qualifying the sales professionals
- Encourage the practice of constant feedback
- Always show confidence to the client
- Treat the product or service being offered as unique
- Truly believe in the help provided by your product or service
- Engage more with the target audience, studying digital marketing strategies and keeping the client always informed
- Offer proper support to the client
- Provide multiple payment options
- Count on a sales CRM
3. Use a sales CRM
In the previous point, we mentioned the sales CRM as a key tool to increase conversion rates. But do you know why it is? By relying on this resource, sales teams can expedite, optimise, and organise their processes, allowing themsleves to focus on what really matters: negotiating and dealing with the client.
With Dynamics 365, for example, it’s possible to obtain real-time analysis, operational mobility for efficient interactions, and the flexibility to integrate with other software and tools (such as email, documents, and spreadsheets), while also obtaining the total cost of ownership (TCO), leading to a quicker return on investment, among other advantages.
You best believe it: with the actions we’ve outlined here, getting to the desired results in sales is certainly going to be easier!
If you liked our blog post and are interesting in learning more about CRMs for sales teams, get in touch with us, learn more about our sales solution and start increasing your teams’ sales conversion right away!