Is Your Sales Team Closing Enough Deals?

Hello and welcome to the show. Today I'd like to tackle the question is my sales team closing deals at a healthy rate? This is a question that everyone asks at some point eventually, that's if I end up doing consulting for them because everybody wants to know how am I doing, Am I doing well in relation to industry standards, you know, blah, blah, blah. Now, unfortunately, this is one of those questions that does not have a simple answer.

It's like when people want to know how well are my emails performing? My emails are only being opened at, you know, 7%. That must be bad. But then if you consider the industry, consider your space and maybe the industry average is 2.5%, then all of a sudden seeing that you're doing 7% is actually quite good. So this is, oh, by the way, I'm not saying that industry standards for e-mail open is 2% or 7%. I'm just trying to show you how the answer of some of these things are relative and depend on other factors.

So the answer to the question is my sales team closing deals at a healthy rate. Depends. So First off, you guys who've been listening to the show for a long while know that I like to look at things through the lens of simple sales and complex sales. Because whether you're dealing with a simple sale or a complex sale, it the, IT determines how it is that you're going to, how you're going to sell, the approach that you're going to take.

It also determines the kind of expectations that you have. So if you're dealing with a simple sale, then the only thing that you're worried about really is making sure that you don't have any problems with your merchandise and that you have for traffic. And if you do that, you should have healthy conversions. So back to the example that I use all the time, which is the sale of Agusi in the market, in the open market as a simple commodity.

So that's a simple sale over there. So it's a simple item. It's just a Gucci. Everybody knows what a Gucci is. You see it, it either looks good or it doesn't. And everybody has access to the price. You know how much a copy is, because all you have to do is ask one or two people in the market and then you have a fair idea of how much a copy is, how much a Moodle is. Then let's see what else. You don't want to spend a lot of time because it's just in and out and then it's just you who's buying the Agusi.

You know, your wife says go and get me some Agusi, and then you go and you buy the Agusi. Just buy sharply and then you leave. So this is a very simple sale scenario. So in this case, for the vendor who actually sells a Gucci in the market, the only thing he or she has to worry about is make sure that you sort out food traffic. So This is why it's important when you're dealing with simple sales scenarios. This is why it's important.

Where is your stall? Where is your shop? So if you have the market stall but you're in the middle, then I guess that's a problem. But if you have a stall and it's out in front, now people can see it as the walk by, you know, then it's a good thing. So which is why in certain scenarios, it actually makes a lot of sense to pay more for the shop that is in front of the market rather than paying cheap for the store that is inside the market.

Because you need to sort out food traffic when we're worried about simple sales. Because if it's a simple sale then and everybody knows if it's a simple sale like a goosey and The thing is fairly obvious, if somebody walks by and your a goosey looks like it's going rotten, you know, it's obvious and everybody know that OK, this thing is going rotten, it's going bad. So just make sure your merchandise is on point, make sure that you have access to full traffic, and then the number of deals that you close should be well.

So if you run a shop, you have a sales girls there and you're worried about her ability to close, just make sure that foot traffic sorted and make sure that there's no problem with the merchandise. So if it's a large store, make sure it's in part of the mall where there's access to foot traffic and you'll be good. So that's when we're dealing with simple sales scenarios. For complex sales scenarios, just give me a moment.

There's something I need to attend to right now and then I'll hop back on the mic and I will continue the discourse. OK guys, I'm back. Sorry about that. For those of you who are using really, really good earphones, I'm sure you can figure out the reason why. It's raining right now. And I had laundry outside, so I had to go dash and get them in. And you know, side note, it's really interesting because growing up in Lagos, I was a teenager in my Lagos during my Lagos years.

And back then, we used to have this thing, people would say 7 days rain, five days rain, that sort of thing. So I didn't know that this sort of thing happens in Abuja because in Abuja actually the last couple of days, I think we're getting on maybe five days rain now, which is kind of frustrating because there's a whole bunch of laundry to be done. And of course, you can't dry things if it's raining every day. But anyway, that's a sidebar.

So let's get back to what we're talking about. So my sales team, are they closing deals at a healthy rate? So I was saying that it depends on the number of factors. And we have looked at simple sales scenarios and how food traffic is important and then whether you have problems with the merchandise or not. So if you sell a goosey and you sell oranges, just make sure you're where there's food traffic, place your employees where there's food traffic and make sure there's no problem with the merchandise.

Because if you're in a place where there's food traffic, but your goosey stinks and it's going rotten, everybody can see if you sell oranges and you have the food traffic, but you know your oranges are sour, you know, everybody's going to figure it out because you know how it is. People come and they buy, they say how much you say, OK, it's it's 8 for 1000 or something. And yeah, the person pays and then the person cuts one.

The tasty is like this thing is sour. And you know, instead of buying 8 for 1000, we take a few and they leave. And after a while you get a reputation like, oh, this guy, his oranges are not sweet. And then people stop patronizing you even though you have healthy food traffic. But then when we look at complex hill scenarios, now for complex hill scenarios, typically the conversions are lower. That's because you're dealing with more decision makers.

There are more people who have to make a decision. So back to the agusi thing. My wife says go get agusi. I'll go and buy the agusi. But if I went to buy a house, on the other hand, I can go and look at the house and I can say, correct, I like this house and I have the money, but it will make sense for me to call wifey and say, hey, what's up? When are you free? I've seen this place. I like it. Let's come back next week Tuesday and then have a look.

So it's not a straightforward thing that you just excuse me, that you just show up on by the ABC, you know, so it's sale of a house. This one is complex, more decision makers. So because of that added factor, now that it's not just do I like the house? Can I afford it? But you know, is my wife going to like it? You know, things like that. These are some of the things that make the conversions lower because you're dealing with more variables in complex sales scenarios.

So more decision makers. What else length of time that is involved? Because obviously if we're buying a house, it's going to take a longer period of time. Nobody walks up, looks at the house and just says, OK, I like it. How much? And then you just drop millions like that. So it's going to take a while. Then cost, when you're dealing with complex hill scenarios, the amount of money you're dealing with goes up. I mean, it's higher.

So a house is more expensive than a Gucci. Then what else? What else? What else? Relationships. Yes, the necessity of relationships. So when you want to buy a Gucci, you just go in and buy the Gucci and then you leave. You know, whether she's your friend or not is not that important. Although the smart market woman or market man, we want to be friendly towards you so that next time you just come and go straight to his or her shop.

But it's not necessary. And that's the reason why sometimes you go to some vendors and you're pricing and then they just give you the attitude like look, what are you buying or not? You know, take this thing or get out of here. You're spoiling my market. I actually had somebody say that before. The person said that. Well, the person wasn't talking to me, but I was talking to somebody else and the woman told the guy that look, you're spoiling my market.

Now since you've been here, you've been haggling, you haven't bought anything, you're blocking people, you're bringing bad luck that can you please leave your spoiling my market. So for complex sales, on the other hand, the relationship is really important. So it would take something really, really grievous for someone in the complex sale, you know, maybe somebody selling consulting solutions or selling a house, you take something really grievous for the person to take that kind of language with you.

OK, no, forgive me, I'm going off point. But what I'm just trying to say is that with all these factors, decision makers, time, cost, necessity of building a relationship, your conversions will go down South. If your neighbour has a shop and your neighbour sells children's clothes imported from the UK, for instance, and you see that she's doing fantastically well, maybe like 100 people go to the shop and then fifty people end up buying, but you sell car batteries, fans and spare parts and stuff like that.

You will in the same mall, your shop is next to hers. You can't just assume that because of that, 100 people are going to walk into your shop and then 50 people are also going to buy as well. So these are the things that affect how well your sales team, your sales people, your business is going to close deals. So you should be looking at what your particular industry is. You should be looking at your target market, you should be looking at your sales process.

These are the things that are important when trying to figure this out. So when it comes to industry, like in the tech and in the software space, average closing seems to be 10 to 20%. This is something that is these are figures that we get from the West because of course in Nigeria, I mean, who's who's keeping statistics on these sorts of things. So sometimes that's just the best that we have to go to go on for now. So tech and software, 10 to 20%

is considered good. So in other words, if you have a tech or a software thing and you're only closing at 5%, then what? Holiday. But then if you're closing at 40%, then it means all right, you're doing not bad, not bad at all. Then for manufacturing in the West, again, rates are higher, 20 to 30%. So, you know, if you're a manufacturer and you're closing 60% of your deals, you know, then that means you're an absolute superstar.

Since industry average is about 20 to 30%, then what else? OK, like I said, when we're talking about complex sales scenarios, you know, the longer the sales cycle, the lower the closing rate. So the closing rate for Agusi will be high. The closing rate for the woman who sells clothes in her shop, even though it's imported, will be high. But by the time you move up a bit and you're selling cars or houses, closing rate is going to get lower.

Then also depends on the competitive landscape, how much competition do you have in the market, you know, stuff like that. That can also affect the closing rate. Now for the target market, this is how it factors in. If you're in the B to B, nice business to business, not someone like me, for instance, a consultant selling to other businesses or like the client that I just finished consultations for. OK, well, not just finished, we haven't quite wrapped up yet.

Who then the alternative energy space. So, you know, people in those sorts of things, it's a complex sale. What you're selling is expensive. The people who are buying sometimes are using other people's money. Because when I'm talking to the so it's not always that I'm talking to the CEO or the person who owns the business. Sometimes I'm talking to the business manager. Now the business manager is going to seal this deal, but the business manager is not going to pay for the money himself, pay for the thing himself or herself.

The money is going to come out of the business money. So I might be talking to business manager, but the person who is going to pay at the end of the day will be Olga or Madam. So in B to B, you have this thing where you're negotiating with somebody, but it's not his own money that he's dropping or her own money that they're they're dropping. They're dropping the businesses money. Then. So with all these things, you know, B to B, business to business, you're going to have a lower closing rate.

But then if you're doing business to consumer, which is that other example where in the mall, you know, Madam opens the shop, she imports clothes from the UK and from America and she has, you know, 3 or 4 sales people there who are selling. So for that sort of thing, it's less complex. The people who are coming in, they're buying with their own money. It's a simpler decision matrix because if a man and a woman walking, they either like the clothes or they don't.

They can either afford it or they don't. They either can afford to buy one or two things now and maybe, OK, keep this one for us, we'll be back next week or they can't. So closing rates will be higher. But then the last thing that we have to consider or rather one of the the last thing that I can think of for now that we have to consider that will affect your closing ratios, your closing rate, whether your people are closing deals well enough is whether you have a sales process because you need to have a well defined and efficient sales process because this increases the likelihood of closing deals.

So back to the examples that we've given so far. If you are in the tech or software space and you're closing between 10 to 20% and that is OK. If you have a well defined and efficient process, then your people are going to get better at looking for leads, qualifying leads, having conversations with people, making presentations or proposals, and then your closing rate is going to go up. So this is the reason why your sales process is also an important factor in trying to figure out if your sales team is closing at a healthy rate.

So we need a well defined and efficient sales process, sales framework or strategy or whatever it is you want to call it. It increases the likelihood of closing the deal. So the things that you should be trying to fine tune as the business owner. So you're the Madam who owns the shop in the mall and you have one guy who's the store manager who holds the Instagram and then you have 3 ladies who man the floor. So you're trying to make sure that the conversions go up.

Then what you need to do is you need to work on lead generation. You, the business owner, of course, in conjunction with your store manager and whatnot, you guys need to work on lead generation. Now remember, a lead is anybody who has done something, who has raised their hand, who has taken some, taking some sort of action to show that they might be interested in your product or service. So when you run advertisements,

that is lead generation because if you run the ad and somebody clicks on it and the person sends you a message and says, good morning, Sir, how much or good morning, Ma are you available on So, so, so, so date and how much does it cost? That is a lead because the person has done something to show that they might be interested. So you guys need to work on lead generation. That is a part of the sales process because all sales processes are they're trying to figure out who should I be chasing?

How do we chase them? How do we start conversations with them? How do we figure out what they need? How do we make the proposal? How do we get them to take the next step? How do we get them to pay us? And how do you get them to come back and do business with us again? And also how do we get them to get their friends and their family members to come and buy from us as well? So those are the sorts of things we were trying to figure out when we want to optimize the sales process.

So lead generation, very, very important. Get people to raise their hand who is interested. Then you guys also need to figure out lead qualification. Qualification is just the process of trying to, it's just making sure that you're talking to qualified people in quote, people who want, people who need, people who can afford, people who have a problem and people who you can help. So lead generation, you're advertising, you want as many people as possible to come through the store, but their lead qualification, when they are in the store, you need to be talking with them to figure out that these people are your kind of customer, the right person to do business with.

So I've said in previous examples that I'm not impressed by brand names. So obviously if you have this store where you bought these clothes from America and the UK, someone like me is not the kind of person that you want in your store because I'll go there, I'll nitpick out everything and I'll be doing as if I'm pricing Groundnut. You'll be frustrated. I'll be frustrated. So you don't want someone like me in the store.

Now my wife on the other hand, she knows these sorts of things like OK, a sauce, a sauce is good because of this, or Marks and Spencer is good because of that, or Gap is good because of this or Wrangler is good because of that. So my wife knows these sorts of things. So you actually, if you run this kind of business, then you're actually hoping for my wife to enter the store rather than me. If I enter inside, that's bad market.

If my wife enters, that's good market. So that's part of what the qualification is about. The person is is in the store, you're having the conversation, trying to size them up, trying to figure out what it is that they need. Can we help them? Is there a match here? This is a beautiful relationship or not. So if you find out that you're dealing with a knucklehead like me, then you have to find a way to try and end this thing, weave the conversation.

But if you're dealing with someone who is educated and well qualified and who knows the space and appreciates good quality in quote, like my wife, then you know all is good. Then you move on to the next step, which is the sales pitch or the proposal or the presentation or the toasting or whatever it is that you want to call it. So that's something that you have to work on as well as I'm a business owner. So you guys need to come up with the right sales pitch.

So now that this person has seen the advertisement, has come into the store and has had a chat with BC the sales girl and has selected it. OK, No, let me see. OK, Yeah, the person has coming. The person had a conversation on BC. What is the sort of thing that BC the sales girl is supposed to say to make everything look nice and good and sweet and get the person to put it in the basket that they're willing to, to buy? Because it's one thing to stand and to stand and look at one individual item.

But oh, by the way, this is the reason why when you're going to a store, in case you haven't figured it out, especially those of us who are guys, guys listening to the store right now. That's the reason why you come in, you're there with your wife. Wife is looking at stuff. That's the reason why a young lady picks up a basket and walks to your wife and says, oh, here ma, let me help you. And then they start putting things into the basket because if you come and you just look at things from the full, a few garments and look at stuff, you guys just walk in and walk out.

Well then if somebody walks up and is like, oh, hello ma, blah, blah, blah. What are you looking for? This and this and that. Oh, this one looks nice. I'm coming man, let me get the basket. And then they put two or three items down. The thing is, if they take two or three garments and put in the basket, the likelihood that at least you guys will buy 1, you know, the likelihood kind of goes up rather than you are standing and looking and discussing and then the salespeople stand back and don't do anything.

You will come in, stand, discuss, and your wife will say, but I like this, but I like this. And you will say, you know what, let's come back later and then you guys will leave. So yeah, so you need to figure out all these sorts of things. At what point should BC bring over a basket? How should BC start the conversation? How should BC talk about the baby items or the teenager items or the this items? You know, this is all the whole thing about the sales pitch of the proposal.

The proposal of the presentation is just where you say, I understand what it is that you're looking for. This is what we have in stock. And I think this thing is going to match what it is that you're trying to achieve. So OK, ma'am, I understand you want pajamas. They have to be baby gap from this dot dot dot dot. There's no problem. Ma'am. We actually have this and this and this in this store. It is last season something,

something we're doing it whatever, 20% off. So you can take this you put it in the basket. But my if you're also interested, we also have in the main storehouse. We have the one that just came in now, now, now. Madame just bought it three weeks ago. So Madame, did you see the episode of Desperate Housewives? The one that Rihanna's baby was wearing? So so we have that model, the one that Rihanna's baby was wearing. Oh, Rihanna's baby, that one,

that thing it look really nice. You don't mean it. Oh yes, ma'am, we have it. OK, I'm bring it now. And then you now call the store manager and tell him to go and get it. And then you keep engaging the other person in conversation. Excuse me, while waiting for the store manager to bring it. So this is the whole thing when we say sales speech proposal or the presentation. So you guys need to work on that as well. Then you guys also need to have a well defined process for negotiating.

We need to let the sales boys and sales girls know what's up. Now look, if you're negotiating, don't go past 10%. If you give anybody more than 10% discount, I'm removing it from your salary. Excuse me? Yeah, sorry about that. So if you give anybody more than 10%, I'll remove it from the salary. This one is old stock. OK, So you can give up to 50% discount, you know, blah, blah, blah. Do just make sure you have a process.

This is what we can do. This is what we cannot do. This is how you negotiate at this point, if anybody's approaching closer to this, this, this and the sale is and they've selected items worth more than 50K, then make sure you call me on the phone so I can handle the negotiation myself. So anyway, you just agree on on the whole thing. Then of course, you also need to come up with Mcclair and strategy and practices for following through on customers,

following through on stuff that needs to be done or follow up as the average Nigerian likes to say. So these are things that we have to consider when we're worried about whether your sales team is closing deals at a healthy rate. Do you have a world behind defined process and have you sat them down and taught them that, look, this is what we do for lead generation. This is how we bring people into the store. This is how we have conversations with people on the store when we have selected one or two items and they're in the basket and the people seem to be seem to be Hemming and hawing and they're not quite sure.

This is how you make the pitch. This is how you make the proposal. This is how you you talk up the the stuff that they have. These are the benefits that you're supposed to highlight when it comes to negotiation. Make sure you do like this. Do like this, stand like this, talk like this, use this phrase. Don't use that phrase once you call the manager to do the negotiation or once you call me business owner to come and do the negotiation.

And then after we close the deal and they work out, what is the process for following up with them? Make sure that everybody's happy and try and get them to come back and buy some more. So if as the business owner, you have thought about these things, you have defined these things and over time you've made this process efficient, then of course your sales team, the ability is going to get, so the ability to close deals is going to go up and up and up regardless of whatever the industry average industry average is.

But OK, I've spoken quite a great deal about how everything is relative. Like you can't say my sales team is closing 50% of the deals, therefore they're closing healthy or they're closing good. You can't just say because this is not school, it's not academics. So you can't say 50% is pass mark. It all depends. But the best comparison is your own historical data. So if for the year of 2023 your people were closing at 20%,

meaning 100 people enter the store out of the 100 people.com 20 by, if that is how they performed in 2023, then now they were in 2024. If they're doing 40%, even if industry average is 60%, you can see that your sales process is getting better because last year the people who are closing 2 out of 100, this year they're closing 40 out of 100. So what you should be tracking, actually it's not just industry average and what your neighbours are doing, you should also be tracking your own historical data.

What did I do last month? What did I do two months ago? What was I doing this time last year? So you should be tracking things like website conversions, how many people came to my website on my Instagram, then lead conversions. A lead is when someone says that they are interested in the product or the service. So from the people who came to the Instagram who said how much are you free? Do you have it in blue? Do you have it in black?

How many of those people did we convert? So if 100 people, if 1000 people looked came to Instagram and then out of the 1500 century DMS and the DMS of the level of how much do you have it in blue? Can you deliver by Monday those kind of conversations out of that 500, you only closed 20. You know, those are the sort of things that we're looking at when we're talking about league conversions. Then there's also, OK, well,

sales conversions, league conversions, the similar, let's just say that the same thing, but sales conversions, we're looking at scenarios where you have to give a proposal. You've listened to somebody, they've given their whole story, and then you now say, OK, Madam or God, based on what you said, this is what we can do for you. This is how much it's going to cost. So if you have a conversation with 50 people who come into the store, how many people are you able to capture business from?

So you should be tracking that. You should also be tracking cart abandonment. That is for those of you who do business online. So for you online people, you know, there's somebody that will, you know, they will click on this, add this to cart, add this to cart, add this to cart. Like recently my wife, she likes to read so Nigerian fiction. So there's some, so excuse me, there's some websites like that that you can buy books from.

So you click, you add to cart, you add to cart. And you know, once in a while you add to cart, you add maybe 12 books and then you look at the bill and it's like, oh man, this bill is harsh. And then you remove maybe like 8 books, you only end up buying 4. So you should be tracking that kind of thing. You know, how many things do people are to cut in the beginning and how many did they drop off or how many people abandoned all together?

Because there are some people who in fact, I did it the last time I wanted to buy sales books on Amazon. I, this was even years ago self. There was some books that I wanted to buy. So I just, I add everything out to cart out to cart. And by the time I saw the bill it was like it was like 400 or something. Ki was like OK, 400K for books. So OK, no, I'll have no problem. I'll come back to it later. And guess what happened.

I never came back. I won't tell you how I got to read the versions of the book eventually because I'm not going to endorse piracy or unethical activity, but anyway, you can read them between the lines. So yes, cart abandonment. Yeah, I've done that. I've taken a whole bunch of stuff from the website saying I want to buy and then at the end of the day I didn't buy. So you should be tracking how many people are abandoning cart.

Then average order value. When people come in here, how much are they buying on average? Customer churn? OK, we had 50 customers last year. How many of them did business again with us this year? So those are the things that you should be looking at to try and get what your historical data is. So last year how many people came to the website or last year how many people came to the Instagram? This year, how many people have hit us up on Instagram?

Last year how many proposals did we issue? And then how many deals did we close? This year, how many proposals have we issued? Last year? On average, how much were people spending when they entered inside the store? Were they working out with 2020 K worth of purchase this year? What is the average and water value? Thank customer churn. The people that did business with us last year, how many of them came back? So these are the sorts of things that you should be tracking.

Now when you have, excuse me now, when you have these details, when you have all these details, it is then that you can now make a good assessment about whether your sales team is doing well or whether they're doing poorly. So if you track all these things and you see that last year you guys were doing 40% and then this year it looks like you guys are 32%, You now know that OK, there's fire on the mountain, there's a problem, how do we solve the problem?

Or your industry average is 10%, but you in your own store, last year on average, you guys did 15%. This year on average, you guys did 20%. Abby, what did I say? And then forgive me, but you're the reason I'm trying to say. So it's not just industry average be tracking your own historical data. These are the sorts of things you should track and just track it every month. I think it's getting better. I think it's getting worse.

Based on what you're tracking, you now know what it is that you need to tweak. So if last year Instagram was doing real good as per leads from Instagram was like on average maybe 50 people every week was were pinging you, sending you messages like how far is this thing available? Can you deliver by Monday? Do you have it in blue? How much were express delivery if you were having, let's say, 100 of those conversations every week last year, but then this year you're in the second-half of this year and so far it's like you're only getting 20 per week.

You now know that, OK, there's fire on the mountain, there's a problem. We need to tweak something on the Instagram. You will now call your Instagram specialist or whatever, and you guys will sit down and brainstorm and figure out, like, what's wrong is the quality of photographs that are crap or is it that you guys are running advertisements before and then you stopped or what else was it? The copy that has changed? Like, the photographs are still on point.

But last year you had Abdul Rahman, who used to write all the advertising copy for you guys. But Abdul Rahman left in Japan and then you now hired Adebc. But Adebc, you know, the way she's writing is, you know, is somehow, somehow, you know, typographical error here, bad grammar there. So yeah, you'll be able to sit down and figure out what it is that is going on. So the long and short is how do you know if your sales team is closing deals at a healthy rate?

Unfortunately, there are too many variables to look at. So I can't tell you that if you guys are doing 50%, you're doing fine. I can't say so because depending on your industry, depending on what you have done in the past, 50% actually might be bad. Because if you guys were doing 80% last year and they say you hit 50%, then actually it's a sign that this fire on the mountain things are going bad. Let's figure out what it is that is going wrong.

So look at your industry, look at your target market, look at your sales process. You'll be able to figure out what is good or not. Then track your own historical data and then compare what were things like before? What are things like now? That's what I'll let you know. Also, I'll let you know whether you guys are doing good or you're doing poorly. So yeah, that's it. Connect with me on WhatsApp. The phone number is 08064662140.

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