What’s your close rate?
If you’re selling landscaping work, you should know this number off the top of your head. A high close rate means that you’re succeeding at winning the business that you’re targeting. It also means that you’re likely targeting the right customers who appreciate the work you do and how you operate.
High close rates mean your process is efficient.
A low close rate can mean a lot of things. Maybe your lead targeting is off and you’re pitching to the wrong people. If that’s the case, it’s worth revisiting your ideal customer profile to ensure everything is lining up.
It could mean that your prices are too high for your market. You could explore how to bring additional value to your customers without compromising your revenue. Maybe that involves selling a different type of work.
Low close rates can also mean that your sales process isn’t right.
Let’s take a look at some of the most common reasons for low close rates in the landscape industry.
The customer doesn’t trust you.
If a customer has been burned in the past by other landscapers, they may be extra cautious when you speak with them. If you ask the right power questions, you can determine where they’ve been let down by other companies.
Use this information in your sales pitch. Become the trusted advisor by being straightforward and open about your processes. Let them ask questions and stay empathetic to their pain points.
Be confident and show them that they’re making the right decision. Show them that they’re making the right decision. If they are hesitant, you can explain how your company prevents the sorts of problems they’ve had in the past. Try offering testimonials or explaining your warranties and guarantees.
Give specific details about how you plan to communicate with them throughout the process. The customer could be reassured if you tell them that you’d be posting daily photos into their personal customer portal. Offer to introduce them to the crew lead who will be overseeing the day-to-day. Transparency is key for this customer, so use that to your advantage.
The price is too high.
While most customers are sensitive to price, there are some that take it a bit further. While you don’t want to waste time with customers who don’t respect the work you do (you know who these customers are), some good customers can still be motivated by price and value.
If you’re using the right software, you know how much you need to charge to hit your revenue goals. Be sure you’re not compromising your own outcomes to win a sale. Instead of lowering the price, add value to your proposals.
Consider bundling low revenue per hour work with high revenue per hour work. Though you may not be profitable in one area, you can make up for it in another. Show off your portfolio, and paint a picture of what they can expect when they work with you. Maybe you can expedite their project because you have the right equipment on hand. You could offer them daily updates through a customer portal.
The customer doesn’t feel that you’re listening.
Some customers want to be in control. They want you to be a trusted advisor, yes, but they also want what they want, and they want it their way.
Instead of getting frustrated with this customer, become option and detail-oriented. Give them options to choose from while explaining the benefits and the drawbacks of each one. It’s even better if you can distill it down to a few sentences. When customers get to choose, they feel more in control of the meeting and are less likely to become argumentative.
Your customers are unique. Treat them like it.
Treating each customer as an individual with unique needs is the key to improving your close rate. Identify their barriers to buying, and have answers to them. Make sure that you are showing your strength in their pain areas and ask questions to hone in on what exactly is going poorly.
With some practice and preparation, your sales team can go into each meeting ready to push the right buttons.
Want to improve your customer and lead management? Check out LMN! With a CRM designed especially for landscapers, you’ll have the communication tools you need to grow.
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