Defining your closing ratio is crucial when it comes to setting goals and tracking your sales progress. Understanding your closing ratio makes it much easier to accurately project future revenue. In this blog, we’ll discuss how you can increase your closing ratio quickly so you can exceed those sales goals and grow your construction business.
Let’s start by defining what a closing ratio is. Your closing ratio is the number of deals you closed compared to the number of bids that you quote to clients. For example, if you bid 10 projects last month and closed 2 contracts as a result, you closed 2 of the 10 bids or 20% of your percentual sales. In this scenario, your closing ratio is 20%.
The first way you can instantly increase your closing ratio is by getting organized and keeping track of all your data. Having all your data in a cloud-based CRM like Followup allows you to make sure no leads, clients or jobs are forgotten. If you’re using spreadsheets or blackboards to keep track of all this data, you’ll often run into issues trying to find the information you need to stay on track. Using a construction CRM helps immensely with keeping all your data, leads, clients, bids and jobs organized and will help increase your closing ratio as you are able to find the details you need quickly and efficiently. Leveraging a CRM will help make sure no leads are forgotten so you can easily follow all the steps you need to take to close a deal.
The second way you can quickly increase your closing ratio is by never letting a lead fall through the cracks. Sales statistics show that sales are made on the 5th to 12th contact. If you’re just following up once or twice with a lead, you’re missing out on a huge opportunity to close a deal. Followup CRM allows you to keep track of all of your sales activities, follow ups and client meetings. You can schedule sales activities that will appear in a dashboard to remind you of all the behaviors you need to take in order to close a deal. Consistently following up with leads is guaranteed to help improve your closing ratio.
A third way you can increase your closing ratio is by utilizing analytics and reports to help you keep track of your individual and company’s progress and pipeline. Leveraging important reports and diving into historical data is crucial for understanding gaps in your business. One of our clients, Best Roofing, pulled a client profile closing ratio chart in our system and discovered that high-rise condos and apartment complexes were the job types that were consistently closing. This allowed them to focus all their business development efforts towards these specific jobs, causing their closing ratio to increase by 50%! Analyzing reports is key when it comes to understanding which jobs are worth bidding and which ones aren’t.
These are just three of many ways your construction business can quickly increase their closing ratio and leveraging a CRM like Followup can help immensely. To learn more about how Followup CRM can help improve your closing ratio, click here to request a live demo.