Are deals taking too long to close? Try this test....
/I have lost count of the number of times organisations have told us they need to improve the ability of their salespeople to close deals. They tell us there are too many sales opportunities sitting in the 'closing' stage of their pipeline for too long. They take much longer to close than anticipated or else they simply evaporate and disappear from the pipeline altogether. The conclusion therefore often drawn is “We need to improve our closing skills”.
Not necessarily...
The reason that many sales opportunities take too long to close (or never close) is often less about closing skills and more the result of gaps earlier in the sales process. In essence, these opportunities should not yet have reached the ‘closing’ stage of the pipeline. The problem is usually two-fold:
Salespeople haven’t had all the right conversations with all the right people earlier in the sales process.
There is no mechanism in place to enable them to accurately identify where an opportunity really is in the sales process. This makes it much harder to correctly diagnose what needs to be done and with who to move it forward. Progress is often tracked based on action taken by the salesperson vs. action taken by the customer that indicates they are moving forward in their buying process. This disconnect often gives a false representation of reality. For example, a customer stakeholder asks us for a proposal, we do loads of work and we then submit it. We think they are ready to buy whereas in reality, they might simply see it as a good way to find out more about potential market offerings. This is a million miles away from ‘about to close’.
Both these issues require attention if an organisation is to have an effective and reliable business development 'engine'. However in the short term, the following may help….
Pick an opportunity that has been stuck in the ‘closing’ stage for a while and ask yourself these questions about that opportunity….
Have you met all the key stakeholders involved in the decision making process? All of them? How recently? Have you met them in relation to this particular opportunity?
Have they shared with you their issues, priorities and needs? Different stakeholders will have their own specific issues and challenges as well as potentially different priorities. It is vital to show how these can all be addressed with your proposed solution.
Have they provided the key information and data that will enable you to build a compelling case for them to choose your solution? A strong business case based on their numbers, their data and their information will be much easier to buy than one containing too many assumptions.
Have key decision makers and influencers acknowledged to you they see the value (financial and non-financial) of working with you? This is different to them saying they like your solution. People like lots of things however they don’t buy them all. They buy what they believe will bring much needed value to them and their organisation. They need to fully appreciate that what we are proposing will deliver this value.
Have relevant customer stakeholders shared any concerns and risks in moving forward and if so, have plans to address them been agreed? They may well have some risks and concerns - especially if they are buying from you for the first time. This should be expected rather than hoping it isn’t the case. However, their willingness to share and discuss them is a good indicator of engagement.
You will notice that they all imply some form of action by the customer. This provides the ‘evidence’ the customer is moving forward on their journey to towards buying.
If the answer to any of these questions is NO, then it might point to where action is needed to move that opportunity forward.
Good luck!