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Tiny improvements in your sales process can lead to big changes in revenue.
Here are 6 you can make today:
Let’s say Company A sells software,
has a customer lifetime value of $10,000,
& a sales funnel looks like this:
• 100 Leads
• 50 Sets
• 35 Shows
• 25 Closes
They make $250,000 (25 closes x $10,000) every 100 leads.
Let’s say Company B sells the same software,
but each step in their sales process is 10% more efficient.
Their numbers look like this:
• 100 Leads
• 60 Sets
• 48 Shows
• 39 Closes
Company B makes $390,000 (39 x $10,000) every 100 leads.
Company B can spend more on marketing because 100 leads are worth $140,000 more to them.
The result?
Company B grows faster.
A tight funnel is a competitive advantage.
Let's break the funnel down into three sections:
1. SET
2. SHOW
3. CLOSE
A set is a lead that books a sales appointment.
There are 2 things you should focus on if you want to maximize sets:
1. Respond quickly
- You’re 21x more likely to qualify a lead when you call them within 5 minutes vs. 30 minutes
-35% - 50% of sales go to the vendor that responds first.
2. Be persistent
Most reps call a lead 1-2x. 👎
The chance of connecting with a lead is 90% if you call 6 times.
SHOWs are leads that attend their sales appointment.
I've found two easy ways to boost show rates:
1. Shorten your booking window
We found that people were 6x more likely to no show if they booked an appointment > 5 days out.
The sooner the appointment, the higher the show rate.
2. Send personalized appointment reminders
• One study found that text message appointment reminders reduce no-shows by 38%
CLOSEs are the number of people that buy from you.
There are a million things you can do to improve your close rate.
Here are 2 unconventional ones:
1. Use a notecard
• Outline the critical parts of your sales process
• Put them onto a notecard
• Print that notecard out & use it on every call
Here’s mine:
2. Pay a pro to audit your pitch
Chances are you’re overcomplicating your offer & it's costing you money.
Work with a pro to craft a seamless offer & a smooth pitch.
I bet you'll get an excellent ROI. 👌
TLDR
Make these tiny changes to your sales funnel if you want to see big changes in revenue.
SET
• Respond in < 5m
• Be persistent
SHOW
• Shorten your booking window
• Send personalized appointment reminders
CLOSE
• Use a notecard
• Pay a pro to audit your pitch
If you got value from this thread, follow me @JohnIsBuilding, where I talk about all things growth.