We live in an increasingly competitive business world and no matter what industry you are in, the chances are that every single day competitors are entering your market. Being witness to the rapid growth of businesses, one thing I am becoming more and more aware of is that to be successful, we cannot afford to take our foot off the gas. It’s absolutely critical to constantly develop new sales strategies and seek new ways to drive revenue in order to stay on top. Business success stems from increases in sales and revenue and this is the first place we must look when developing growth strategies.
The first port of call is to increase lead generation. The more business opportunities we create the more successful we will be. Increasing lead generation can be done via a number of avenues – digital, social media, offline, networking referrals and more; It’s incredibly important to have multiple sources of the right lead generation in place if a business wants to reach its full potential and beat the competition to the mark, and if these are not in place then something should be done about it – quickly.
But it doesn’t make sense to put all of our eggs into the lead generation basket. Yes, we certainly should put in extra hours to spark new potential working relationships and take the necessary steps to unlock more opportunities but we should also work ‘smarter’ if we really want to significantly drive the sales and growth of our business.
As well as increasing lead generation, we must also be constantly striving to increase our conversion rate. Solid lead generation strategies will deliver opportunities to our door, but the true magic happens when we get on the phone, in the boardroom or face to face with a potential client or prospect. A higher conversion rate means that we are increasing the number of customers who pull the trigger and make a purchase from the pool of leads we generate and it makes sense that our conversion rate should be as high as possible. But most people underestimate the profound effect that increasing conversion rate can have on their business and revenue.
Let’s say I decide to set up a side hustle and sell Mangos for £1 a piece. If 200 people walk into my Mango store a day as a result of my various lead generation strategies (digital marketing, networking, advertising etc), and 20 people come in and purchase a Mango on a daily basis, then my conversion rate is 10%. I make £20 a day, £140 a week or £1,040 a year revenue.
But if I start implementing effective tactics, approaches and strategies to increase my ability to sell Mangos to say, 50 people a day then I now have achieved a conversion rate of 25%. Simply improving my conversion rate by 15 percentage points may not sound monumental, but I would now make £50 a day, £350 a week and £18,200 a year revenue, that’s a huge increase of 18X revenue, as a result of adopting a more effective sales process.
Every business should be striving to increase their conversion rate, not only will increasing conversions allow businesses to capitalise on the opportunities that their lead generation efforts provide but it will significantly increase bottom line profits.
Here are three powerful strategies that I have found to be incredibly effective in increasing conversion rates.
Realise That Communication Is Not Words
Research shows that over 90% of communication is not through the words that we say but through our body language and tonality. Therefore any serious business owner, entrepreneur or salesperson who wants to increase their conversion rate must not ignore these key aspects of communication.
According to Brian Tracy, 38% of the communication in a sales interaction is conveyed through tone of voice and 55% is through our body language and ‘nonverbal’ communication such as the way we hold ourselves, posture, eye contact or the way we shake hands. This leaves just 7% of communication in the hands of the actual words we speak.
Looking at a sales interaction from this standpoint, it’s clear that we must leverage these ‘under the hood’ communication methods, by ensuring that body language and tonality represents you as an expert in your field and somebody that your prospect can trust to deliver top service and products. Mastering these aspects of communication will have an absolutely profound effect on conversion rates.
Position Yourself As THE Expert
At the end of the day, people want to do business with experts in their field. You wouldn’t trust a banker to renovate your kitchen, or a kitchen designer to invest your money, would you? The same is true in every industry, people want experts in their field to service their needs. It’s incredibly important to position yourself as a knowledgeable, sharp and informed expert within your industry.
The easiest way to position yourself as an expert is to actually be an expert. This means staying on top of industry trends, developments and ways to be the best at what you do.
But it’s also important to convey to your prospect that you indeed are an expert. Cementing yourself as an expert in your potential clients’ eyes is achieved by asking well thought out and effective questions and then being able to identify your prospects problems in order to provide viable solutions to them. This suggests that you understand your prospects needs and have the ability to provide value to them simply through your own expertise, let alone that of your company.
Focus Your Energy On providing Value To Your Prospect
What do prospects care about the most? Themselves and their needs.
I always strive to keep a sharp focus on the needs of my potential client and constantly think of ways in which I can help and provide value to them. Too many salespeople are too focused on themselves and are way too quick to pitch their business before fully understanding how they can most effectively be of service to their prospect.
In the eyes of your prospect, being ‘too quick to the pitch’ suggests that you only care about closing the sale, and not actually helping your prospect with their needs and requirements. It is a surefire way to eliminate trust and risk losing the sale. Instead, focus on your prospect and how you can help them solve their problems and realise their vision.
On a final note, never be satisfied with your conversion rate. There are always strategies and tools that can be implemented to increase conversion rates, even by a small amount. When compounded, this can have a huge influence on the prospects you can help and the growth of your business!
Written by Cameron Scott