Team Not Converting?
You’re not alone. Here’s why deals don’t close and how to fix it.
01 | Understanding the Problem
It’s the status quo!
Most sales teams struggle with low close rates or poor opportunity win rates because they are unable to help the buyer understand WHY they should change in the first place. Because of this buyers tend to stick with what they know — the status-quo. Studies have shown that up to 60% of deals are lost to no-decision or the status quo. Losing to the status quo will have a substantially negative impact on close rates. In addition to the status quo, losing for not having all the requested features, price and the inability to overcome objections can crush your win rate. Most selling methodologies emphasize a product or solution-oriented approach which unknowingly drives the customer to focus on features, and price, therefore, causing salespeople to lose deals they should not have lost. Solving for loss due to status quo, price and features is at the core of improving win rates and opportunity conversions.
02 | Diagnosing the Root Cause
At the heart of losing to the status quo, feature-creep, and price is product-centric selling. It’s selling features and functions. It’s discoveries that focus on product need and pain, not current business problems. Pain is NOT the same as a problem and treating them the same can have dire consequences. When sales does not understand why a customer should change and the negative impacts if they don’t change is when deals are lost. Too many sales organizations focus on the product or solution instead of their buyers business problems, thereby they inadvertently put themselves in a defensive posture where they must “prove” the value of their offering and “convince” buyers their product is the best. This rarely works, as product-centric selling does not align with the buyer’s intrinsic and business motivations for change. Preparing your sales team to diagnose a buyer’s intrinsic motivations for change and to uncover a buyer’s critical business challenges changes the entire buying process. It centers the sale around the value of change and the cost of doing nothing, not the product, its features, and the price.
03 | How To Fix It
The key to fixing low win rates and poor conversion lies squarely in the ability to move salespeople from being product-centric to being problem-centric. This process starts internally, by embracing a holistic understanding of the buyer’s working environment, including their business challenges, key metrics, and desired outcomes over product features, product placement and pitch decks. By increasing the sales teams business acumen and their understanding of the buyer’s problems, the organization is better equipped to increase their win rates, minimize the impact of losing to the status quo or losing on price and arbitrary feature requests.
Download the PIC to help your team understand your buyer’s business problems and why they exist.
Need more help with this problem?
Or do you think you’re dealing with other scenarios as well?
Long Sales Cycle
Low Average Sale Price
Poor Pipeline Development
All The Way Down Here?
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