6 Tips to Improve Closing Ratio

Closing Ratio is a metric that measures sales effectiveness. Such metrics are used to evaluate a company’s profits, project revenue, and plan for success. If you are not tracking your Closing Ratio yet, you should. It is the number of deals you close compared to the number of engaged prospects.

Use these tips to improve closing ratio
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Tips to Improve Your Closing Ratio for Contractors and Sub-Contractors

Closing Ratio is a metric that measures sales effectiveness. Such metrics are used to evaluate a company’s profits, project revenue, and plan for success.

If you are not tracking your Closing Ratio yet, you should. It is the number of deals you close compared to the number of engaged prospects. (Engaged prospects could be the ones you sent a proposal to and followed up with them. Or the number of presentations you gave.)

Assuming you know your closing ratio, let’s look at some ways to improve it.

Sales Follow Up Statistics

1. Target Your Marketing Efforts

The more qualified a lead is the better chance a salesman has to close it. Poor leads bring down your closing ratio and reflect badly on your sales team. If you have a marketing department, have them qualify the leads. By targeting your marketing efforts, you make sure you bring the right leads to your sales team. For instance, your online service forms can collect important information about the prospect’s issue or project so you can qualify leads faster. You can ask what the timeline is to fix a fire alarm system. If the timeline is not acceptable to you, you don’t send the lead to the sales team.

2. Improve Your Lead Response

The faster you respond to a lead the better your closing chance. For example, aim to respond to questions or requests from your website within 10 minutes or less. Return calls within the hour. Did you know that if you contact a lead within 60 seconds, you have 200% higher conversion rate than the second contact? Companies on average take 15 hours to respond via email and 60 hours to respond via phone. Get ahead of your competition by responding to leads faster than them.

3. Build Trust with Your Customers

While you have a customer on the phone, try to learn as much as possible about their issues, frustrations, challenges, and needs. This way, you start building a relationship of trust and people do business with the people they like and trust. If you become their partner, then you’re more than just a number on a proposal.

4. Track Proposal Views and Delivery to Up Closing Ratio

Once you send out a proposal, it’s important to know whether your client received it or not and whether they looked at it or not. When you follow up on your proposal via phone, you will have a starting point for your conversation.  If you’re emailing proposals from Outlook or other mailing programs that cannot track this information, you may want to look into a sales CRM solution for contractors that provides this service. They can be fairly inexpensive but put you ahead of the game with the information they provide.

How are you tracking your closing ratio today? If you don’t, you need to. You will ensure better success for your company. There are many ways to track your closing ratio. A really good one is to have technology do that for you. Follow the 6 tips above and you should see a boost in your closing ratio.

6 Tips to Improve Closing Ratio

5. Talk to the Right People

The closing rate will increase if you engage the right people. Make sure you send your proposal to the right person. If you’re a subcontractor, target the Project Manager or Project Executive with that GC and not the Estimator. In other words, engage the decision makers. Let’s say you notice a proposal hasn’t been viewed as suggested in Tip #4 above. Make sure you sent it to the right person. Call the main line and tell them you are bidding x project and would like to know who the Project Executive is. You’d be surprised how often they will tell you on the spot whom to contact.

6. Spend Time Where It Matters to Increase Closing Ratio

Spend time where it matters to bring up your closing ratio. Following up today on a lead that is not ready to be closed is time wasted. Find out when a decision is going to be made so you can follow up at the right time. Set a follow up date and track your sales pipeline by that date. Also track sales behavior to know who to follow up with. If you know a GC rarely wins work in an area, follow up with the other ones you bid first.