It's Tuesday and I'm meeting with an executive for a large equipment organization. It's an interesting conversation, as it's indicated the sales force is very busy with customers wanting equipment, managers are even asking for more bodies to handle the volume of calls and customers. Sound like a dream?
Then the question comes, "What volume of business are they doing or how many are they closing on?"
"That's the problem, I'm guessing the actual closing ratio is only 15-20%!" and we start wondering who is in the driver's seat.
"What?" I ask, "I would expect 30-50% or maybe more, what is not happening here?"
"Obviously they are not qualifying the customers and are functioning as order takers and information clerks!"
The issue of effectively qualifying a customer seems to be more prevalent today in many industries. This similar conversation happens at least a couple times a month.
If this is true then let's take a look at what this idea of qualifying is all about.
First let's understand what a qualified customer is:
1. Has a need or want your product will address
2. Has the means by which to purchase the solution
3. Has the authority to purchase the solution
4. Will make the choice in a reasonable time.
If the criteria listed above is not present, they are not a customer. It becomes a valid question as to whether they should be pursued at all as a customer! Yet many salespeople will invest days and weeks chasing what we call CBFR's (call back for rejection).
Why would this happen? Here might be a few reasons:
* Fear of losing a sale or relationship if they pressed or asked the questions.
* Confusing activity as being the same as productivity.
* Not knowing how to qualify.
* Poor questioning skills when trying to qualify.
* Managements focus is on quantity versus quality activity.
* Confidence levels causing reluctance in doing what they know they should.
* Plus more
This can be a full day or two of training to cover all of this, so we will give you a few quick ideas that you and your team can apply.
The quickest way to qualify is to ask. A few well phrased questions can quickly indicate if the potential customer meets the four qualifiers. Some examples are:
* Tell me about your situation that causes you to call?
* If you found the right equipment and value, how soon would you want to take delivery?
* How will you be using this equipment in your operation?
* If you found the right equipment and value, what are your plans for financing?
* In addition to yourself, who else would need to be involved in the decision?
* What circumstances are causing you to consider purchasing now?
* What type of research have you done on this equipment so far?
* How open are you to alternative solutions if they provide a better value?
* In addition to overall value, what other questions or concerns might you have?
* Who else's input would you like to have in making this decision?
This should give you a good start on creating your own qualifying questions to help sort out who is ready and why as well as who is not ready to make an equipment commitment.
The key is to keep the questions open and focused on the four qualifiers.
Another neat tool in qualifying a call in is the "Delivery Day Picture". This is a modified use of the word picture. The customer calls in and the sales person says:
* "Mr. Customer let's just look ahead a bit. You're waiting for the delivery truck to bring your new equipment to you. What is the date? What are you going to do with it once it's unloaded? Who is taking care of the final paperwork and check? What are you telling others about the new purchase?"
The power of this tool gets them into the future taking possession and having made all the decisions. It can very quickly determine how well they have thought through the potential purchase. This adaptation of the process above came from a franchise sales group that needed to qualify potential new investors very quickly. A very effective method.
One can see this is going to take a level of self-confidence, some planning and even some role play to make it smooth. Some may resist this because of fear, yet it is in theirs, the companies and the customer's best interest to qualify quickly and early!
The salesperson will have more time, more control and better sales because of better qualifying. The company will have profitable sales from quality customers and the customer will get the proper attention rather than being shortcut by an overloaded salesperson.
Our suggestion, every salesperson should have a page full of qualifying questions they can use every time they talk to a potential customer.