Now in this age of transparency and accountability, we have to focus on every stage of the sales process when we want to improve our close rates. This means measuring everything and managing based on results.
One important tool marketers use to prove advertising’s effectiveness and improve close rates is call tracking. With call tracking, companies have solid data that distinguishes which marketing efforts drive calls and which do not. Marketing ROI becomes apparent, and your decisions can be data-driven.
Beyond this basic call tracking, Convirza monitors call close rates. In other words, we determine the percentage of phone calls that result in a sale, appointment, quote, or whatever the ‘goal’ of the call is. We track the actions that qualify as a ‘close.’
In the hospitality industry, about 25% of the phone calls end with the caller booking a room. Another example is the retail automotive space with average close rates of approximately 20%. Which means, about 20% of the people who call an auto repair business, a tire dealer, or an auto glass shop bring their car in and buy products or services.
The list goes on with each industry reflecting a different closing sales percentage. The actual ratio of leads to customer sales isn’t the important take away here. What’s exciting are the results we’ve seen after scoring millions of phone calls and tracking their close rates.
One Convirza client started scoring calls about eight months ago. They pinpointed specific aspects they followed on their inbound phone calls.
The company wanted to know how well their employees used basic sales skills.
When this company began scoring phone calls, their close rates hovered around 14%, which was much lower than the industry average. This new client only closed one out of every seven phone calls. Needless to say, they wanted help.
Fast forward five months and this client is thrilled. Their phone call close rates are now 68%. So from the gloomy 1 in 7 phone call close rate, they now celebrate almost 5 in 7 calls that end successfully. So the same marketing budget now delivers 5x more clients. What’s more impressive is their per store revenue is more than DOUBLE the industry average.
How did they make such drastic improvement in just a few months?
As soon as they started scoring their phone calls, managers initiated a call review and training program. They played call recordings with employees and discussed performance on each call. Supervisors and employees worked together to improve customer service and sales skills. Employees with the most improved call scores were rewarded additional, and coveted, vacation days.
Within days, call scores began to climb, and so did the company’s close rates.
Another client had used call tracking for several years but switched to Convirza specifically for the phone conversation data. After several weeks their benchmark call score was 51%, and the close rate was 19%, which was in-line with the retail automotive industry.
Once they knew their close rate, this tire store could work to improve. Before they had this information, it was impossible to change without the feedback.
Convirza gives you the tools to follow Peter Drucker’s mantra,
“What gets measured, gets managed.”
Within 90 days their average call score rose to 66%, and in lock-and-step fashion, their close rate climbed to 29%. They were closing 2x more leads.
So in one quarter, this store doubled the number of callers that purchased their tires and services. Imagine 50% more successful phone calls. Imagine 50% more revenue.