Closing a sale is one of the most crucial steps in the sales process. Not only is it the last step to the prospect of becoming a client, but it is also the start of a new relationship. Using the right sales closing techniques and language during this stage is a make or break moment for your sales rep. Say the right thing and seal the deal, or say the wrong thing and risk losing it all.
Whether you are building up a new team of sales reps or your experienced team needs a refresher, learning proper sales closing techniques is vital to maintaining and increasing your sales. These closing methods can be practiced within your team or with outside help from a sales coach. In our guide, we have compiled a list of top sales closing techniques, as well as FAQs and tips for ramping up your closing ratio.
Closing A Sale
So, you’re on the home stretch. You have presented your product or service, negotiated, compromised and have begun to build a new relationship with your prospect. They seem happy and ready to work with you. Or, they might have some questions or concerns about your products. Now comes the closing stage, where you can tie up any loose ends and finalize the sale.
What exactly does it mean to close a sale? Closing refers to actually making the sale. You can even argue that the entire selling process is technically the closing stage. When approaching the sale finish line, it is essential to know what to say and how to say it. Based on your reps’ personalities, selling styles and prospects, there are various sales closing techniques and training to put into effect.
Best Sales Closing Techniques
The best way to close a sale depends on a lot of factors. Your industry, sales team strengths, what you are selling, and your target market are all vital factors to consider when choosing the best sales closing technique. Here are some of the top sales closing techniques:
- Now or Never Close: this is a classic technique used across all industries. Prompt prospects to make an immediate purchase by offering them a special deal or by creating a sense of urgency. Ex: “this item is only on sale today.” or “I’ll knock off 20 percent if you buy today”.
- Summary Close: a good way for prospects to visualize the true value of what they are getting. Summarize your sale and conversation so you are on the same page. Ex: “so we have item A, item B, and item C. What email can I send the invoice to?”
- Assumptive Close: this method requires diligence from your sales rep from the beginning. For the assumptive close to work, your rep must be familiar with the prospect’s needs, language, and what to avoid. When closing, you are assuming that the prospect will say yes and you can finalize everything. Ex: I assume you wanted to move forward as soon as possible. Can we schedule our first project meeting next week?”
- The Columbo Close: for those of you old enough to remember TV’s detective Columbo, you will remember his famous line “just one more thing” that he would say to suspects when they thought he was done interviewing them. When you feel a prospect start to back out, drop a “just one more thing” and present an enticing offer or feature.
- The Puppy Dog Close: this method works perfectly if prospects are able to try or test-drive your product before buying. If someone lets you take a puppy home for a night, there is a good chance you would buy the puppy. The same method can apply to cars or some electronics.
- The Backwards Close: while unconventional, the use of reverse psychology has proved useful in many sales situations. The Backwards Close actually starts with referrals and ends with prospects, the opposite being the traditional approach.
What is Good Closing Ratio?
What is a closing ratio? A closing ratio is the number of sales closed versus the number of sales quotes or offers sent by your organization. For example, if you send out 20 offers a month and you close ten, your closing ratio is 50 percent. While the industry standard usually floats between 20-30 percent, your team’s ratio depends on your industry and lead generation tactics.
Along with that, your closing ratio can be tracked by different metrics, allowing you to get a more thorough understanding of your sales team’s strengths and weaknesses. For example, track metrics like repeated purchases from existing customers, new product purchases from existing customers or success from running sales. If one ratio is much lower than the others, it is time to focus your sales closing training in that area.
How can You Increase Your Closing Ratio?
If your closing ratio is not where you want it to be, there are ways to increase it. One of the most crucial ways to increase your closing ratio is by emphasizing value over price. Discounts are not always the best way to close. Instead, highlight as many features as you can, so the prospect can see the value in the sale and be more willing to pay full price.
Another way to increase your sales ratio is to be more selective of your prospects. If your scope is too wide, you are less likely to close a sale. Doing thorough market research, conducting surveys and studying key demographics from your competitors are all great ways to narrow your prospect scope. Once you find the right audience, closing a sale will be easier and easier.
Common Sales Closing Questions?
If your reps struggle with the closing stage of the sales process, there are common questions to know that will help guide them through finalizing the sale:
- It seems like our product is a good fit for you, what do you think?
- I know I just told you a lot of information, what questions do you have?
- Unless you have any more questions or concerns, I think we are ready to start. Do you agree?
- What’s the next best step from your perspective?
These questions are ideal for getting the prospect talking so you can tie up any loose ends. If they want to move forward, it will be even easier to apply closing techniques and finalize the sale. Along with this, your sales reps need to have responses to these questions locked and loaded. For example, if a prospect is not happy with the price, your rep should have a rebuttal. If a price compromise is made, apply the Now or Never Close to sealing the deal.
Sales Closing with Wizard of Sales
Formulating the right sales closing training techniques takes time and effort. However, knowing how to effectively close a sale is a crucial skill for any sales rep to learn. Try implementing some of these sales closing techniques during your next sales training session, or contact us at Wizard of Sales today.
Our experts are dedicated to helping your sales team grow. Let us take a good look at your business to see where you need help. We can help you drive up your sales and improve your sales team’s performance.