Tuesday, March 09, 2010
How fewer sales can lead to more customers (and higher revenue)
There are any number of ways to turn a prospect into a sale. If they’re not quite ready to buy, you can apply pressure and get them to buy early. You can create false urgency to get a quicker sale. You can give them a guarantee, or a trial period, or do something else to get them over the line.
Sales organizations do this and more all the time. Especially at towards the end of the month, they’re classic ways to pad bookings and get past quota. On paper, these sales organizations look like they did their job.
But that’s the only sale they’re going to get. If the buyer wasn’t ready, they won’t be as successful as they could have been. If they’re not truly qualified, the likelihood of a bad experience is high. If they were expecting more and got less, they’re unhappy.
Those buyers are one and done. They likely won’t renew, and they certainly aren’t going to help bring you new business from their peers and broader network.
Bring in the right buyer – at the right time, in the right context, with the right expectation – and you’re far more likely to multiply your money. Sell only to those who are qualified, ready to buy and need what you’re offering. Sell to those who are ready to get started, ready to be active customers and partners.
Could you drive more short-term sales with harder, higher-pressure tactics? Sure. But the long-term impact of immediately happy and successful customers leads to renewals, repeat purchases, and word of mouth that translates to fast and cost-effective incremental new sales in the months and years to come.
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