No matter what business you're in, closing sales is a big part of it. Converting leads to customers involves a determined, knowledgeable sales team and process to get your products or services out there. Sales stats can help you better understand the landscape of the industry and know where to focus your efforts.
Let's dive into some sales statistics about closing a sale and making a profit.
20 sales closing statistics = 20 statistiques sur le closing
From common challenges to timing and sales strategies, here are some interesting closing statistics to keep in mind as you focus your efforts on conversions.
1. Closing is still a priority
While generating leads and boosting customer satisfaction has overtaken closing in recent years, it still has a spot in the top priorities of marketers. About 15% of marketers said that closing more deals was their top priority for the next year.
Of course, those other activities play a big role in closing deals and are important to the bottom line overall. Consider a company that is known for exceptional customer service — their buyers may be more enticed to buy, indirectly improving the close rate. But generating leads can only benefit your company so much if you aren't converting those leads to buyers.
2. Closing is very challenging
There are several different parts of the sales process. But closing deals ranks below prospecting and engaging decision-makers as the most difficult part of the process, with 35% of salespeople saying it's the hardest part of sales.
Using tools to improve and speed up close rates can help closing become a less-daunting process that is an everyday part of sales. And, of course, it can boost your bottom line by giving your sales team the analytics, insights, and tools to ease the closing process.
3. You hate low-price competitors
One of the reasons closing is very challenging is that you have to compete with your low-price competitors. About a third of respondents said that competing against low-cost providers was a major challenge to overcome.
Whether you're advertising convenience, higher quality, or something else, you'll want to make your unique benefits known and engage with your clients in a manner that stands out. That can save you from having to lower your own prices to compete, maintain your profits, and help you close deals.
4. The closing process is changing
The move to virtual environments is changing the way we close deals. About 19% of respondents in one survey said that engaging customers in a virtual environment was in their top three challenges. Another common difficulty was accessing decision-makers, but adapting to these virtual environments can be a tool rather than a hindrance.
With more work being done online, tools that are geared toward smooth digital communication can make a big difference. If you can reach out to your prospects quickly and meet their needs through fully virtual mediums, you have a competitive advantage.
Get a blue print from Laura Leap, Senior AE at Samsara on how to crush your quotas:
5. Not all opportunities get closed
Don't be discouraged if you aren't closing the majority — or even a fifth — of opportunities. Close ratios are measured by the number of opportunities created over a given period divided by the number of opportunities closed. Every industry differs, but some examples based on industry include:
- Finance averages 19%
- Business and industrial organizations average 27%
- Computer software averages 22%
- Computers and electronics average 23%
Close ratios are a good way to measure performance, so you'll want to keep an eye on them across your team.
6. Less than half of proposals are won
Even the majority of proposals don't turn into closed deals. The win rate is calculated similarly, but it looks at just the opportunities that make it to the proposal stage. Across all industries, the win rate is 47%. As you might imagine, the best performers had high win rates.
This stat is a good measure of the closing process specifically and can help you identify issues at this stage. Your sales team should understand their purpose, use their time wisely, and increase connections to help boost your win rate.
7. Close ratios often influence compensation
Closing is so critical that it often determines how much your sales teams will earn. Although the number has been decreasing in recent years, closed/won revenue is identified as the most significant variable influencing sales representatives' compensation, according to about 45% of respondents. Multi-variable compensation packages are likely to blame for the decreased emphasis on this metric and can provide holistic review processes based on more information.
8. Reps love end-of-month
To hit their monthly quota and earn their compensation, most of your sales reps work harder at the end of each month. Offering better terms to these last-minute buyers helps both parties because they know the company is willing to help to make their numbers look good. Salespeople close three times as many deals at the end of the month as the rest of the time — however, their overall deal size drops by 34.5%.
There's a complicated relationship at play here, so it's important to assess the relationship between the timing and value of your sales.
9. Virtual tools are becoming more and more necessary
By the end of 2021, chief sales officers expect nearly 60% of the sales force to be operating virtually. We know virtual tools are becoming more important in the wake of 2020 and as modern technology advances, but this number drives home just how much of sales is going to be done digitally. While face-to-face experiences are still valuable, you should be investing in virtual communications technology like easy instant messaging, secure electronic signatures, and fast content creation to stay competitive.
10. More deals get closed on Tuesdays
When it comes to closing, not every day of the week is equal. Tuesday continues to be the best day to make contact with leads, with a success percentage that's almost 20% higher than the average across all days. Fridays and Wednesdays were the worst days to call, with Monday and Thursday being about equal, not too far behind Tuesday. It may be worth taking a look at when your representatives are making the most sales and see if they can reorganize to make more contacts on these days.
11. More deals get closed in the morning
Similarly, if sales reps make their calls between 9 and 10 a.m., they have about a 45% higher chance of success. Morning contacts were overall 27.2% better than contacts made after noon. Check out when your sales contacts are happening. Consider automating touchpoints in the mornings to reach prospects when they're most likely to respond.
12. Customers may not need you as much as you think
The advent of self-service tools and advanced research available online have made buyers less and less dependent on salespeople. About 57% of people think buyers are less dependent on salespeople than two to three years ago.
We can look at the role of the salesperson as more of a facilitator than a seller. Many buyers want to be able to research the product on their own without pressure or time-consuming calls from salespeople. Think about how your salespeople can convert leads with this more modern mindset, putting emphasis on answering questions or being touchpoints for potential customers.
13. Buyers want to speak to representatives at certain times
In the consideration stage, 60% of people want to talk to a salesperson, rather than during the awareness or decision stages. In comparison, 19% of consumers would want to call a salesperson during the awareness stage as they learn about your business. And only 20% of consumers want to talk to a salesperson when they're actually ready to buy.
Customers aren't likely to call you before they know they need your product, and they probably already know what you have to offer by the time they've decided they're buying. With this in mind, make sure you have resources and strategies in place to meet your customers' demands during the consideration stage.
14. Your leads trust some reps more than others
Sales reps are some of the least-trusted workers out there. Just 6.7% of people said that information from sales was very trustworthy, versus almost 14% for customer service. When we add in those who said sales and customer service were somewhat trustworthy, the numbers jump to 40.3% and 67.8%, respectively. Consider who your leads are likely to turn to for help and how you can use that information to close more sales.
15. The majority of business buyers have more online interactions than offline
With the rise in virtual communications, it's no surprise that most business buyers have more online interactions than offline ones. In 2021, the estimated split is 60% online interactions to 40% offline.
In addition to making these interactions as smooth as possible, you'll also want to ensure that buyers have options. Your buyers should have freedom of choice for getting in touch, whether through emails, video calls, texts, live chats, or something else.
16. The disconnect between buyers and sellers is high
Sellers tend to think they behave how buyers want them to, but buyers tell a different story. For example, 50% of sales reps say they avoid being pushy during calls, but 84% of buyers with a negative experience said that sales reps were pushy. Similarly, 82% of salespeople said that they tried to provide value to the prospect, versus 34% of buyers who experienced it.
Sellers also seem to be more concerned about asking why the customer is making the purchase rather than answering their questions, such as those on pricing. Just 23% of sales wanted to talk about pricing, while over two and a half times that, 58% of buyers, wanted to talk pricing on the first call.
The same goes for information on how your product works — 23% of salespeople focus on that, but 54% of first-time callers want a demo. Make sure you know what your buyers want to discuss and are including those concerns in your calls.
17. Automation can help you work more accurately and efficiently
Automation and artificial intelligence (AI) are becoming vital to earning leads and closing sales. Some of the tasks that marketers are automating include task management, content automation, and chatbots. These tools are being used by 58%, 42%, and 31% of respondents, respectively. Each one helps marketers work more efficiently, and AI has possibilities in just about every area of sales — it can automate tasks, make predictions, and much more.
18. Business buyers will pay more for a great experience
Customers know the value of the sales experience and the connection that can be made with a partner company. About 84% of business buyers say that experience is just as important as the product or service being sold, with around 67% willing to pay more for a great experience. These numbers underscore the importance of a positive sales process.
It may be worth investing more time and money into a sale if the company can earn more from it. Whether convenience, great customer service, or a superior selling process, there are many ways a positive experience can support a higher price point.
19. Customers expect companies to use new technologies
Your customers know the value of technology. They know it can help you target prospects who are the right fit and better meet their needs before discussing sales. Three-quarters of consumers expect companies to leverage technology for their benefit. That might look like more personalized advertisements or offering features and deals that better fit the customers' needs.
20. Relationships drive purchases
Business buyers are thinking about more than the bottom line — 84% of them are more likely to buy from a company that demonstrates an understanding of their goals, while 75% say vendor ethics are playing more of a role in purchasing decisions. Be sure to get these points across when talking with prospects.
Get ahead of the competition
How do your figures compare to industry averages? Hopefully, these B2B sales statistics have helped you see the way the sales industry is evolving and how your business is keeping up. You might even consider using software statistics to have a deeper look at sales closing patterns. We've learned about the importance of understanding customer perceptions, what drives your sales reps, how both parties want to communicate, and much more. Consider taking a good look at how your organization aligns with these industry findings, and see if there's anywhere you can make changes.
