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Understanding the Sales Force

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Top 11 Reasons Why Salespeople Fail to Close Sales

  
  
  

Dave Kurlan is a top-rated speaker, best-selling author, sales thought leader and highly regarded sales development expert.

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Today I coached a salesperson who thought he had call reluctance - but I didn't agree.  He was pushing through, making calls - although not as many as he should.  He has some need for approval - but since he needs approval from his boss he needs to make the calls in order to get it.  He needs some approval from his prospects but can't earn that unless he gets prospects on the phone and impresses them. So he actually has reason to pick up the phone and make calls.

I wondered whether he loved selling - enough.

I wondered whether he was committed - fully and unconditionally.

I wondered whether it was something else entirely...

The reason I'm bringing this up is that in most companies, when certain stages of the sales process are not being exectued as they should, executives often don't know why.  That's one of the many reasons why we evaluate Sales Forces - to identify root causes of the known (and unknown) problems.  The second reason is that problems are often misidentified.  For example, half of the calls and emails we receive each day ask us to conduct workshops/coaching/training/seminars on closing skills, even though closing skills are almost never the reason why salespeople fail to close sales.  With sales and salespeople, you need to work backwards from what you know, and ask many "could it be?" questions to identify the real problem and more importantly, the reason for the problem.

For instance, problems with closing (delays, put-offs, losses to the competition, pricing, etc.) happen for any or all of the following reasons:

  1. not a qualified opportunity
  2. salesperson did not present an ideal solution
  3. lack of urgency
  4. salesperson did not create/build value
  5. no compelling reasons to buy
  6. lack of posturing
  7. timeline misunderstood
  8. not selling to the correct person
  9. salespeople lack opportunities so they continue to work the lousy ones too
  10. salesperson presented too early in the process and then went into chase mode
  11. prospect never agreed to spend the money required
Even if you identify which of the reasons are responsible for the closing problem or challenge, you must go through that same process and identify 10 more possible causes for each reason - and go through that process repeatedly until you have identified the root problem.  The root problem will probably have nothing to do with selling skills!


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Posted by Dave Kurlan on Mon, Sep 19, 2011 @ 11:58 AM

COMMENTS

Could it be a hiring problem? They hired the wrong person who should not be in sales.

posted on Monday, September 19, 2011 at 2:22 PM by ed kleinman


I think the #1 reason is failure to qualify. Going through clients' prospecting lists I see lousy opportunity after lousy opportunity, which the salesperson is continuing to turn into something real!  
 
Also, demonstrating a solution before finding out the prospect's true budget is a very common problem. Then the prospect disappears and is off finding the solution for the lowest price while the salesperson is stuck "following up". Overall, in my observations it most commonly boils down to a lack of qualifying skills.

posted on Monday, September 19, 2011 at 2:29 PM by Jason Kanigan


Dave, greetings from the UK - thanks for this article and great examples of why sales people struggle to close - we are working with a sales manager who is always 'busy' chasing pipeline and when/if they do close it's usually is a 'price point' sale – why do so many sales people think the 80/20 rule is acceptable – 80% chasing weak pipeline and 20% qualifying the sale surely it should be the opposite way round?

posted on Tuesday, September 20, 2011 at 2:28 AM by Jean Outhwaite


Comments have been closed for this article.