Ep 120: How to close more business

Subtitle:

The goal of all businesses is to make profit, and that’s only possible if you’re able to consistently close business at a profitable rate. So the question is, how do you close more contracts? In today’s episode, we break down the process of funneling clients, and some key steps to produce the most success and increase your close rate. We talk about investing, communication, Mark Cuban, money, and more on this week’s episode!

 

Summary:

On today’s episode we explore strategies to close more business. In order to figure out how to increase your closing rate, first you have to analyze how you get clients there and how your funnel works. Once you’ve identified the steps and processes your business uses to close contracts and work with clients, then you can work on improving your processes and systems. In the inquiry phase, the top of the funnel, we’ve learned through our experience that asking questions is key to moving forward with clients. Some of the most helpful questions that you can ask are “Why now?, Why us?, and What would a successful project or result look like for you?”. These questions can help you identify the timeline, scope, and budget of the project as well as set clear expectations. We’ve also learned that having the client make a small investment with your business is key. This investment should ultimately leave them with a high amount of valuable information about their company and what all needs to be done to reach their goals for the project. This can help eliminate competition and give you a real sense of the project as well as give the client confidence to move forward with the project. The key in all of these things is communication. Oftentimes in life, people are disappointed because of unrealistic or unmet expectations. In order to prevent this disappointment and conflict, communication is vital. Be honest with what your company needs to uphold your standards of work as well as who you are and what you are able to do. It all boils down to money and if they feel like they are receiving a high quality product. In the end, money isn’t what we care about, it’s what that money can buy or do for us.

 

Top 3 Curtain Pulls in this episode: 

 

• Ask the ‘why’ questions. When businesses are in the inquiry phase, it’s important to gather information about the client and their company, the project they want done, the scope, their budget, and the timeline. Three excellent questions to ask to fully understand these details are the “why questions”. “ Why now? Why us? What would the things be that make it a win?”  These questions can help your business move forward with clear direction.

• Build in a “small investment” step. One step in the closing process that has helped Ken and his business boost their closing rate is the “small investment” step. This step allows clients to feel like they are investing a small amount of money to understand the problem they need to solve as well as the ways it can be solved. It eliminates the risk factor, and if done correctly, can eliminate your competitors, increasing your close rate. “It allows them to test the waters with you at very low cost.”

• Communicate expectations and capabilities clearly. One of the most important skills in all business and in life in general is communication. Without communication, people can feel disconnected, excluded, out of the loop, shocked, and even angry. Lack of communication causes problems and can lose clients. Not only is communication with the client important, but so is communication with your team. Communication sets realistic goals and expectations and creates a healthy business relationship. “The key is to communicate to your potential client, this is who we are.”

 

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About The Guys: 

Bob Hutchins: Founder of BuzzPlant, a digital agency that he ran from from 2000 -2017. He is also the author of 3 books. More on Bob: 

• Bob on LinkedIn
• twitter.com/BobHutchins
• instagram.com/bwhutchins
• Bob on Facebook

Brad Ayres: Founder of Anthem Republic, an award-winning ad agency. Brad’s knowledge has led some of the biggest brands in the world. Originally from Detroit, Brad is an OG in the ad agency world and has the wisdom and scars to prove it. Currently that knowledge is being applied to his boutique agency. More on Brad:

• Brad on LinkedIn
• Anthem Republic
• twitter.com/bradayres
• instagram.com/therealbradayres
• facebook.com/Bradayres

Ken Ott: Co-Founder and Chief Growth Rebel of Metacake, an Ecommerce Growth Team for some of the world’s most influential brands with a mission to Grow Brands That Matter. Ken is also an author, speaker, and was nominated for an Emmy for his acting on the Metacake Youtube Channel (not really). More on Ken: 

• Ken on LinkedIn
• Metacake - An Ecommerce Growth Team
• Growth Rebel TV
• twitter.com/iamKenOtt
• instagram.com/iamKenOtt
• facebook.com/iamKenOtt

 

Show Notes:

[0:47] Ken open’s this week’s episode by wishing Bob a happy birthday.   

[3:31] Ken begins a discussion about this week’s topic, sales, and how to improve your closing rate. “What are the logical stages that we go through that we want to track step to step?”

[4:36] Ken begins to break down the stages that his business, Metacake, goes through, starting at the beginning with initial inquiry. “We have some sort of initial call where we qualify them.”

[5:05] Ken discusses the three main questions he asks during the initial inquiry and how it helps him to understand the company and the potential project. “Why now? Why us? What would the things be that make it a win?”

[10:43] Bob talks about the importance of managing expectations. 

[14:07] Ken discusses the three main factors of a project and talks about a key psychology tactic that has helped his business boost their closing percentage. “In our philosophy there are like three factors to a project. They’re timeline, scope, and budget we've adjusted our pipeline a little bit, and one of the things that has helped us close the most is like putting into place some sort of small, very low cost, essentially strategy product that allows the clients to test the waters with you at very low cost.”

[20:07] Ken says that inserting this step, “develops trust, which builds in ownership to the solution. Also you kind of eliminate competition most of the time.”

[28:20] Ken talks about his goal with this product was to create a clear deliverable product that benefits the client, impresses them, and allows them to see what they actually need and how his business can deliver. 

[32:00] Ken discusses how helping the client visualize the solution to their problem has a magical effect; it helps them feel confident moving forward.

[34:25] Ken talks about how often price is thought of as equal to quality (higher price means higher quality), and because of this assumption, many people are willing to and even happy to pay a higher price. He also adds that, “no one really cares about money. We think we do, but we really care about the results of the money.”

[38:02] Brad makes the point that he and his team feel more at peace about certain projects when they know that they’re being paid enough to uphold their high standard. “We're happier internally when we know we have enough.”

[39:50] Ken adds on and says, “for projects where we haven't gotten paid enough, no one's happy.”

[42:11]  Brad analyzes the common belief that abundance means overpaid and how that isn’t true. “Abundance is enough.”

[43:30] Bob talks about a way to communicate your financial needs in a way that  is about serving the client and upholding the company’s standard.

[46:44] Brad closes by talking about Mark Cuban and his pharmaceutical business and how, “Mark knows his lane. He knows exactly what that business is going to be. The key is to communicate to your potential client, this is who we are.”