You can't close sales unless you have access to the market! Market is defined as those who are ready, willing and able to acquire your products and/or services. Access to the market is known as leads. If your phone is ringing off the hook because of external conditions (inflation, interest rates, etc.), you're getting good quality leads with a potentially high close rate. You should close 65% of those kinds of leads, particularly if you have a sensible benefit package.

The reason these kinds of leads have a high close ratio is because they came to you. In other words, these people were predisposed to hear about a deal. One of the three buying forces of want, need or fear motivated them to take overt action to investigate the value of the product or service. Close rates on an appointment of 25% to 35% are acceptable with most progressive telemarketing or direct mail companies. Since 65% of mail-in or call-in leads should close (they know that they want what you have), and since 25% to 35% of "you-go-to-them" leads close, it's easy to see that the predisposition (or attitude of the client) is of paramount importance.

Example Referral:

Mr./Mrs.___________________ You have been referred to us by______________ They have recently acquired a ______. and feel that the value they received is something that you, too, would benefit from knowing about. Here is our information flyer. If you call us for an appointment, you will get a free gift worth $____ Look forward to meeting with you, _________________ , President Call and ask for me personally (or call and ask for _________________.")

Hint - Don't give too much information in the flyer - stick with benefits, not specifics.

I know of a salesman who closes 90% of all referral leads. I also know of a national sales company which closes 85% of all referral leads. The company salespeople must be at every installation site during the day, because the neighbors come by (and buy!) to see what's happening. I know of a dealer who was written up in a national magazine as a success story, who uses house parties at happy customers' homes as nearly his exclusive means of lead generation. Referrals leads are gold and few companies are milking them thoroughly. Be sure to include referrals as a major part of your market plan.

There are 3 Kinds of Referrals

1) client calls you,

2) client stimulated by mail to call you, and

3) client was sent mail piece and was called in a follow-up effort.

The sale rates are 90%, 75% and 30%, respectively.

Say, by way of example, that some friend, neighbor or associate of one of your customers calls you out of the blue because he/she saw your product/service, was interested, and you did nothing to actively attract this new customer - these are 90% plus close rate leads. They want to buy. In the case of a stimulated call, in the event that you mailed information to the referrals that you received from a happy customer, the anticipated close rate of such leads is 75%. Although several factors can enter into this kind of lead generation, the close rate should still be well above 50%. In the third case of referral leads, you will have sent the information to the referral, but, having not heard back, will call them. You will find the close rate of such a lead generation method to be in the 40% to 60% range.

A great many factors come into play in this type of lead: actual need (application), affordability, how well this person knows the one who referred you to him, and how strong your sales appeal is. That's a lot of factors. But there are basically three kinds of referrals. The first of them comes to you unexpectedly, the other two types are stimulated. "We have to spend money to generate leads. We'd rather pay you than pay the advertising companies." "We'll pay you $____ for any customer who does business with us" The "reward" should be something of high perceived value. You want to offer a reasonable incentive (consider the average cost of any other lead that you generate...).

Actual Referral Program

Customer Appreciation program

At Austin Photo-Lab, we have 2 ways to grow our business

1) We can pay the advertising companies
2) We can reward our valuable customers.

SO,

For every 1st time customer that calls and/or brings in a job and uses your name, we'll give you a COLOR PRINT.

Thanks for your business and your referrals!

Austin Photolab
Austin, Texas, (555)555-5555

The bearer of this coupon, or a First Time Customer gets a FREE 8x10 Color Print!

The person who referred me to Austin Photolab was: