If you’re running a home services business (or any business for that matter), you already know that your closing ratio can make or break your revenue goals. Whether you’re aiming to grow from a 20% close rate to 30%, or from 40% to 50%, improving your team’s closing skills is one of the fastest ways to boost your bottom line.
In this article, we’ll break down three critical levers you can pull to increase your team’s closing rate:
- Handling objections effectively.
- Mastering follow-up techniques.
- Perfecting the sales presentation.
Why Closing Ratios Matter
Your closing ratio isn’t just a number; it’s a reflection of how well your team is capitalizing on the opportunities you’re paying for. If your close rate is below 20%, you’re burning through leads and wasting money. Even a modest improvement in your close rate can mean tens of thousands—or even hundreds of thousands—of dollars in additional revenue each month.
Here’s a quick look at the numbers:
- Average Ticket for Home Services: $5,000–$15,000 (or more for commercial jobs).
- Leads Per Month: 100
- At a 20% Close Rate: 20 deals = $100,000 (at $5,000 avg. ticket).
- At a 30% Close Rate: 30 deals = $150,000.
- At a 40% Close Rate: 40 deals = $200,000.
The 3 Levers to Pull for Higher Close Rates
1. Handle Objections Like a Pro
Objections are the roadblocks between your team and a “yes.” Common objections like “It’s too expensive” or “I need to think about it” can derail a deal—unless your team is prepared to handle them.
Key Strategies for Handling Objections:
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Anticipate Objections:
- Identify the top five objections your team hears.
- Practice responses during daily training sessions.
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Use Proven Techniques:
- Use the Objection Handling Formula
- Grab a deck of Cashcards: Flashcards For Closers
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Role-Play Regularly:
- Example: A plumbing company improved their close rate by 12% after implementing daily objection-handling roleplays.
Pro Tip: Customers hesitate when they don’t see enough value. By addressing objections confidently and focusing on the problem you’re solving, your team can convert more “maybes” into “yeses.”
2. Master the Art of Follow-Up
Did you know that 80% of sales require at least five follow-ups, but most reps give up after just one or two? Following up is often the easiest way to capture missed opportunities, especially during slow seasons.
How to Improve Follow-Up:
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Follow a Schedule:
- Day 1: Send a thank-you text or email immediately after the appointment.
- Day 3: Call to check in and offer additional details.
- Day 7: Share a testimonial or case study to build trust.
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Weeks 2–4: Send occasional check-ins with value-added content.
- This would be the 'bare minimum' approach. Real rockstars use The Sales Academy to use more effective follow-up strategies.
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Use Multi-Channel Communication:
- Combine calls, texts, and emails to increase engagement.
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Add Value in Every Interaction:
- Share maintenance tips, seasonal promotions, or testimonials.
- Example Text: “Hi Sarah, just wanted to check in. Did you know upgrading your system now could save you $300 on energy bills this winter?”
Real-World Example:
An HVAC company we worked with doubled their close rate during a slow season by implementing a follow-up system. Their sales reps contacted “closed-lost” leads from their CRM, resulting in $200,000 in recovered revenue over six weeks.
3. Perfect the Sales Presentation
A strong sales presentation sets the tone for the entire sales process. It’s where your team builds trust, creates urgency, and demonstrates value.
Key Elements of a Winning Presentation:
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Build Value:
- Focus on benefits that matter to the homeowner, like energy savings, durability, or warranties.
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- Example: “This furnace will save you $600 a year on energy bills and comes with a 10-year warranty.”
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Create Urgency:
- Highlight why acting now is better than waiting.
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- Example: “If this leak isn’t fixed soon, it could lead to $5,000 in water damage.”
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Engage the Customer:
- Ask questions to involve them in the conversation.
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- Example Questions:
- “What’s the biggest problem you’re facing with your HVAC system?”
- “How important is energy efficiency to you?”
- Example Questions:
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Practice and Refine:
- Hold weekly role-play sessions to improve presentation skills.
- Record presentations for feedback and improvement.
Pro Tip: A great presentation reduces objections before they even arise. When homeowners clearly see the value, they’re less likely to hesitate.
Which Lever Should You Pull First?
Not sure where to start? Here’s a quick guide:
- If your close rate is below 20%: Focus on objection handling.
- If your close rate is 30% or higher: Double down on follow-up.
- If you want to hit 50% or more: Invest in perfecting your team’s sales presentations.
Remember: Each of these levers works together. By improving all three areas, you’ll see exponential growth in your team’s performance and revenue.
The Bottom Line: Build a System That Scales
Improving your team’s closing ratio isn’t about luck—it’s about consistent effort, training, and focus. Whether you’re handling objections, mastering follow-up, or refining your sales presentations, the goal is the same: turn more “maybes” into “yeses.”
If you’re ready to take your sales team to the next level, we can help. Our proven training systems are designed to boost your team’s skills, close more deals, and grow your revenue.
Click here to learn more and start scaling your home services business today!