When I sold my house last year, it wasn’t until the final hour until the house was really sold. There was a time when being in Escrow meant your house was officially sold and now that’s not the case. That’s why we are experiencing homes that sit on the market today for much longer because of the “deal fall through”effect. I have attached a graph of properties going through contracts to compare with properties which actually close in the San Francisco market.
Inside sales is also experiencing deals that are falling through at the last minute which explains why sales cycles still continue to be longer and deals are falling out for several reasons:
1. No-Po Zone- As you many know, this stands for No Power, No Potential and No Purchase order but not all No-Po’s have no budget. Some have budget but the problem is they don’t have full control of that budget. That means their budget get can slaughtered in the final hour. Solution- you must be well aligned with the Power Buyers who know where and how to find budget when it is lost.
2. New Decisions- People don’t really change their minds, they make new decisions based on new information. Many deals are lost because the buyer changed their mind at the last minute and found another solution to their problem. Solution- you must reconfirm their needs along the way and continue to remind the prospect about the pain they are experiencing and the implications of not addressing this pain.
3. Too Much Time left Unattended- Because buyers today have so many choices and are highly distracted, if they are left unattended without direction, they will lead themselves down a new path. Solution- the multi-touch rule means you must start messaging and attending to your prospects by ”touching” them in the beginning, middle and end of sales cycle.
4. The Social Factor- In this Sales 2.0 economy, people still choose to do business with you based on what others say about you so and how many people you know within the social circle. Solution- make sure when you are talking with someone that you are looking at their LinkedIn profile during your call. Then after your call, ping the 1st and 2nd level contacts to secure your social positioning.
5. Natural Disasters- There has been a significant rise in natural disasters over the past decade and this affects travel, connectivity, and running an organization. It’s not just bad weather such as snow storms or earthquakes, now a tsunami, or volcanic ash can put an immediate halt on conditions. Solution- open your awareness to what is happening in the world and the effect this may have on your prospects.
For more discussion on this, sign up for my free webinar in a couple days- registration is over 2000 so far.
