6min Watch

Sales Data For Directive

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TRANSCRIPT

So I was in this agency community last week and there was a thread that I thought was kind of nuts and it was people talking about their sales process and everyone in the thread was talking about how they closed their deals in like two or three calls. And I number one thought about not saying anything because I’m gonna share some data with you all today that shows why that is insane, number one.

But number two, they kind of feel like I had to help because that is not best practice in my professional opinion. So I guess to show my credentials, I don’t really know. But like we’ll probably do over $3.1 million in new business bookings this month, March 2023. So it’s not exactly the best time either, but I know the quarter is a great time.

Macro economically not so great, but we’re still doing strong with our customer generation approach and with our sales process. And we’ve spent about now ten years refining our sales process and it sure does not take one. One person was doing like a one call close. Maybe that’s okay if you’re selling like ten K services, five K services. But if you’re trying to value sell, grow your average order value, close enterprise deals or mid-market deals like the deals we all dream about, you definitely need more than one or two or three calls.

In fact, let’s just look at the data right here, team. I have this 846 deals from the last year when I do 5 to 9 calls. My win rates were 6.2% higher than the overall win rate of 6%. And this is looking at all ops so not like usually do close rate from proposal to close to one. So this is also looking at all the bad ops.

Yeah, I’m saying this is all ops at all lifecycle stages of my pipeline. So 846 opportunities, close rate, 37% when I 5 to 9 calls. Okay. So our calls are pretty simple intro call to qualify Strack call to sell our methodology and our approach as well as like figure out how we’re going to close the deal. So like learn enough about them.

So the first call is kind of qualify and the second one is to really figure out exactly how you’re going to like understand their needs, their timelines, their priorities and match that to your services in a compelling way so that when you get your next call, the third one, the pitch, you have a hyper personalized, customized 310 aspect work pitch that shows exactly what you’re going to do.

And then on the fourth call, that’s when we review the contract with them. We go over the terms, we make sure we’re perfectly aligned. We reiterate the price and make sure there’s no pushback. Then you got your fifth call. That’s your negotiation call. That’s their feedback, right? Okay. They’ve red lined it. Finance, procurement, whoever. They’ve got their feedback.

So that’s at least five calls. That’s the minimum. And then in between those five, you’ve got your relationship moments, right? Those moments where you’re you’re diving deep, you’re getting them back on the phone, you’re reactivating the deal. That’s when you’re really working it. Okay, so you just look at this data right here. We do much better when we get to 5 to 9 calls, it’s not even close.

I wanna show you some other data, though. I feel you like contacts. When I get more people from their buying center, I close it a seven times higher rate at a 28% win rate. So I can get multiple people from the marketing organization involved in the sales process. I do better. I just frankly do power in the deal when I get C-level execs, okay.

940 closed deals in the last full year. When I get to sea level exact, I close out a four times higher rate. Okay, VP’s 3%, C-level 12%. It is statistically significant if you can get a CMO on the call, your close rate skyrockets duration 30 days to 90 days you can go over 91. Plus, I want to say it’s good try to close too quick and it’s actually bad for all the reasons before you haven’t had enough calls, you haven’t involved enough people from their buying center and essentially you under-perform trying to close deals too quick, you make too many assumptions.

You you you overprescribe and under describe the value of your services. It’s a simple way to say deal size bigger deals close better. I think this is really important for people to understand like we all have a perfect fit for our business for our business at Directive, it’s obviously a better fit. I want someone who has over $100,000 sized contract with us.

We’re able to do more for them. Hits our minimums stronger. It’s just better. And this data is a little wonky because we might not put a deal amount in the offer to unity until later sales stages. So I, I would have to add another filter here to figure out down funnel with the performances. I would argue once you get to proposal, these numbers are quite different because we have a lot more deals frankly than 100 K plus in there.

You saw the number of calls, data and we don’t attract competitors. So just want to show you this data. Number one, you definitely need a sales process. Number two, bigger deals should close more often than smaller deals. Number three, have 5 to 9 calls. Number four, get the C-suite involved. And then number five and lastly, involve as many people from their mortgage marketing organization and finance and procurement and whoever as possible, as early as possible in your sales process if you want to improve your close rate. So thanks. And hopefully that helps the sales.

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