Sales closing ratios are a major performance metric for any professional salesperson, and we are all working constantly to increase the size of our sales and improve our chances of closing the deal. A sure fire way to turn more opportunities to closed sales is to give your buyers options.
While researching my next book, we found that buyers want options. In our survey we posed the following question:
When given a proposal, would you rather be…..
- Offered 3 different options that all make sense and priced at different levels like a Good-Better-Best
- Offered 2 different options that all make sense and priced at different levels like Good and Better plans
- Offered 1 solution that appears to make the most sense
54% of respondents wanted option A, 3 different choices, and another 30% chose option B, wanting 2 different choices. This data sends a clear statement – nearly 9 of 10 customers want to have choices. For the sake of this article, we’ll call these options/choices “Good–Better–Best”.
Here’s how you apply the “Good-Better-Best” model to increase your close ratio.
The first step is to get a sense for your buyer’s budget. Our survey revealed that more than three-quarters of buyers are at least somewhat comfortable telling the salesperson what his budget is.
The next step is to determine what you can offer the buyer that virtually ensures the sale because you are certain your proposal fits into his budget. That will be your “Good” option. Then, determine a solution that is the most you think the buyer would consider investing in your solutions. That will be your “Best” option. Finally, determine your “Better” option by offering a solution that is prices at 20-30% less than your “Best” option.
Part of the challenge is developing solutions that fit into your “Good-Better-Best” options. Naturally the options you offer must truly add commensurate value to your buyer and must meet your profit margin expectations and requirements.
In summary, buyers want options – they want to have things to choose from, but not too many choices as that may create confusion or inability to make a decision. Identify how you can add value to your buyer and develop three options that all make sense at different investment levels. Your closing ratio and the size of your average sale will increase.