Average Replacement Sale on a Marketed Lead (too low)

[wpowers11]

As we enter our shoulder season and as we see inflation staying in the high 8%, we need to make sure we are maximizing all our marketing leads. There are times though we will accept a 45% to 50% closing rate from your team, which in my eyes is totally unacceptable. If your sales team is not closing at 60% or better, you have a closing opportunity (issue). Let's look at what the management actions should be if you see this: 

Why? (Possible problems)

1. You’re not priced properly.
2. Your closing ratio is substandard.
3. Your sales team is not offering enough accessories/add-on products and services.
4. Your sales team is not offering options.
5. Your sales team is not offering financing.

Management Actions (solutions):

1. Price yourself properly.

• Review the replacement pricing formula.
• Conduct a random-sample job costing.
• Consider monthly price increase to cover increased costs in this day and age.                                               

 2.Improve your closing ratio.

• Review with your CCRs (call takers) the importance of communicating with the caller that both heads of the household (the decision makers) should be home for the appointment.  Calls should be recorded for quality assurance—take time to review those calls to ensure your CCRs are properly following their scripts.
• Review your dispatching procedures.  Make sure that the right selling technician and/or comfort adviser is going to the right appointment.  For example, you want your best communicator to go to a home with a system that’s passed its life expectancy.
• Implement a call priority system.  The older the system, the sooner you want to have a selling technician and/or comfort adviser at the home.  If necessary, reschedule other appointments and waive those homeowners’ service fee.
• Review with your selling technicians and/or comfort advisers the importance of spending time with clients.
• Review with your selling technicians and/or comfort advisers the importance of both their appearance and sales presentation. 
• Review with your selling technicians and/or comfort advisers the importance of following the “Home Comfort Guide”.
• The sales manager should occasionally be riding along with all of your selling technicians and/or comfort advisers, especially those who are failing to achieve acceptable performance levels.  Consider having underperforming selling technicians and/or comfort advisers ride along with your best performers.
• The sales manager should call homeowners who do not buy.  Ask them what in particular made their decision.  You may get a considerable amount of information on what your selling technicians and/or comfort advisers are saying or doing.  Also use this as an opportunity to potentially save the leads.
• If, after continued training and ride-alongs, certain selling technicians and/or comfort advisers are not achieving performance minimums responsive to the training, you should consider replacing that particular employee.  You can’t continue to burn good leads.
• To help motivate your selling technicians and/or comfort advisers to provide maximum effort on each lead, consider moving to performance-based compensation.  It will focus their attention on every call, and in turn, they will earn more as well. Note: Be cognizant and follow all state regulations regarding overtime pay.
• You may have too many leads.  You may need to add additional sales team members.   

3.Stress to your sales team the importance of offering accessories and add-on services.                    

• Emphasize to your selling technicians and/or comfort advisers that they should always be listening to your clients.  A lot of information can be gained by asking questions and then listening. 
• Train on each and every product and service your company offers.  This should happen regularly throughout your training schedule.  Your sales team should know all of the features and benefits of every product and service.
• Make time for periodic ride-alongs to ensure that your selling technicians and/or comfort advisers are offering additional products and services.  Conduct more ride-alongs with those who are not meeting expectations in this area.  Consider having them ride with top-selling technicians and/or comfort advisers.
• If your sales team is hesitant to offer a particular product because they don’t understand it, invite distributors into your office to provide additional training.
• Consider developing bundled packages of your add-on products and services.  Constantly review how your selling technicians and/or comfort advisers are performing at selling each package by running a management add-on report.
• Consider requiring your selling technicians and/or comfort advisers to have clients authorize any additional products or services that they did not initially want.     
•  

4.Stress to your sales team the importance of offering options.  There should always be deluxe, premium, and optimum options.                                                                              

• Review the invoice and notes from every sold job.  Make sure they are giving at least 3 options.      

 5. Begin offering consumer financing.  If you’re already offering it, ensure that your sales team is using it effectively.

• If you do not currently offer financing, begin setting up multiple options, including revolving, installment, and secondary.
• Make sure that your selling technicians and/or comfort advisers always have the necessary applications before heading to an appointment.
• All selling technicians and/or comfort advisers should turn in their quote sheets.  Each sheet should show multiple options with the financed monthly amounts.  Along with the quote sheets, all credit applications must be submitted to the office.
• If selling technicians and/or comfort advisers are not offering financing or are uncertain how to offer it, increase your training on this subject.  It’s imperative that they know its value to the client, to them, and to the company.
• If a selling technician and/or comfort adviser fails to offer financing, consider contacting those homeowners to share with them that you offer financing.  You may be able to save a sale.
• Run a weekly report of sold jobs compared to financed jobs.  Track the closing ratios on financed jobs versus cash jobs.  The closing percentage on financed jobs should be much higher.  Share this information with your sales team so they can see the benefits of financing.

Be proactive vs reactive with your team and achieve greater results.

[tsjobeck]

Bill Great post!!!

I loved the "Be proactive vs reactive with your team and achieve greater results" 

So True we see this battle in Embers a ton! 

Great Information that customers can apply and see results!

Thank You