How to Close More Sales ~ The Law of 4 Interactions
Life is sales. Whether you have a formal sales position or not, life is indeed sales in every form. Getting hired at a job is a sales experience. Getting married or getting engaged is a sales process. Getting your children to do their homework or eat their vegetables at some level is a sales process too.
So when you look at this concept in sales, where a lot of people sometimes struggle, or they get in their own way, is they don’t stick with the sales process long enough. They give up too quickly because they haven’t made a fast sale. Life is sales, but sales are simply relationships. And any great relationship takes time.
You’ve probably heard it said before that people like to buy from those they know, like, and trust. That’s influenced me, it’s influenced you, and will continue to be a massive influence for the sales to come in any industry. It is the power of relationship. And any great relationship takes time.
The Law of 4 Interactions is based on research done at Notre Dame University. A gentleman named Herbert True conducted in depth studies of thousands upon thousands of sales interactions. In the observation of that data, they concluded that 60% of sales transactions purchase after a fourth interaction. Now consider that number, SIXTY PERCENT, that means the bulk of your business will purchase after a fourth interaction. All that simply reinforces is that people, again, buy from those they know, like, and trust, and therefore, there is a relationship established there. This more your price point increases for a product, a service, or a program, the more critical relationship leverage will become at influencing that sales transaction.
Now some relationships are going to need more time. Some are going to need less. But if you can understand that concept, that the majority of your business is found after a fourth interaction, you can continue forward with persistence and confidence that your results are coming with time.
Something else I’d like you to consider that goes along with that same study, is that 44% percent of all salespeople will quit after a first contact. Now that’s you and me. Whether you say I’m a business owner, I’m a vice president, an executive, I’m a network marketer, I’m a coach, I’m a healer – whatever titles that you have, we are all in sales. Sales is your ability to influence, persuade, communicate, and most importantly serve, is going to be found again in that relationship. That’s almost half, fifty percent, that would give up and quit right out of the gate. That’s if they even get started! According to this same data, they would make one contact, maybe one phone call, one voice mail, one e-mail, and if they don’t get the response they want, they’re done and they’re off looking for someone else. If you’re in the business of developing massive wealth, massive influence, then you’re going to need to be a little more persistent than that, and see it from a bigger perspective – see that you’re nurturing a relationship.
To finish up that data: forty-four percent will quit after a first contact, another twenty-four percent after a second contact, another fourteen percent after a third, and another twelve percent after a fourth contact. That means that ninety-four percent of all salespeople – business owners, healers, coaches, executives, will quit after a fourth contact.
44% quit after a 1st contact
24% quit after a 2nd contact
14% quit after a 3rd contact
12% quit after a 4th contact
Just entertain for just a moment for me. What results do you think the other 6% have? It’s probably pretty clear, right? When you study high achievers and performers in any industry, any organization, they have an essence of persistence and grit…that stick-to-it-ness that they’re going to continue on to nurture and develop. See, when someone tells you no, in a sales proposition, proposal, presentation, just remind yourself that it isn’t no forever. It’s just no for today. Remind yourself of this concept and the power of this research. The majority of your sales, sixty percent, will come after a fourth interaction. What I love most about that knowledge and awareness, is you can turn off all the voices in your head around, “Aw, maybe they don’t like me, maybe I offended them, they’re not interested.” Those thoughts are sabotaging your success. With this new knowledge you can simply trust that it just needs more time.
Maybe what you’ve told yourself, or maybe team members or employees or sales reps of yours are telling themselves, is, “Oh, they’re simply not interested.” Show them this blog. Get them to know the facts and the knowledge. Because what I love about knowing that information is it helps me stay anchored that I’m here of purpose, I’m here to serve them. I’m here to build relationships. When you’re in the business of relationships, you’re in the business of service, adding value, nourishing your network – when you show up and play life and your business from that angle, you can write your ticket. You’ll have whatever it is that you want if you’re faithful and persistent to give it the time that it needs.
When you find yourself discouraged or not closing the sales , consider what needs a little more time. When you find yourself saying, “Gosh, I’m making contacts, but not closing sales,” the difference between contacts and contracts is one letter – the letter “R.” That one letter difference – “R” – just simply stands for relationship. So if you’re making contacts, you’re reaching out, emails, invitations, lunches, phone calls, connecting, but you’re not getting the contracts – all it tells you is you need a little more time on the relationship. A little more time to nurture, connect, ask more, ask to serve, be a resource, add that value. I guarantee if you will be faithful and persistent, that is the magic sauce in life in creating whatever you want. Persistence always trumps talent. Life and sales and results don’t always go to the most attractive, the most educated, or the person with the best upbringing. Success and life and results go to the most faithful, the most persistent, which is you, if you choose it to be. Persistence is a choice, right? Being consistent in following up, and being willing to say, “I’m in it for the big payout, I’m in it to nurture relationships, to a point and a place where that I have multiple business referrals.” This starts to come in because you live this on a regular basis. Remind yourself, remind your team members, that their success, your success, hinges upon these principles: Life is sales. Sales are simply relationship. People buy from those they know, like and trust. You need a little more time potentially if you’re not converting as many contracts from your contacts – you need a little more time on nourishing the relationship aspect to your business.
Thanks for taking the time to nurture your brain. Be faithful. Be persistent. Continue to add value and you also will meet with success.