Tuesday, January 6, 2009

I No Longer Give a #&%! About Your Closing Ratio

That's right, it deserved an explative. Why in sales do we get caught up on this number? My question is how many sales did you get today (or this week)? I don't care how many times you picked up the phone or how many people you demonstrated your product to in order to get that/those sale(s) as long as you get them.

Why, Mark, why? Because you're all full of #&%! when you tell me how many calls or leads you had anyway as you're afraid to have a low closing ratio. We've been holding you to some magical closing ratio number, and it's time to stop. I love interviewing new sales candidates or managers and they tell me that they have a 50% closing ratio or higher. I call BS! How is that exactly measured anyway? Is it based on people you actually demonstrated your product to? Is it based on everyone that inquired? Does it include people that are interested in a product that is out of stock or not immediately available?

And given all that criteria, what really matters? I think two things matter.

1. Getting the sales to achieve the goals set for yourself and management.

2. Recording every single call, visit, or inquiry of any kind that comes in.

I believe these are the key measurements needed for selling and marketing a product. And that's why I no longer give a #&%! about your closing ratio.

Enjoy your day!

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