The 5 Contacts Rule For Closing Sales

BY MIKE THATCHER

Partner

[February 27, 2023] - As a sales professional, you likely understand the importance of building relationships with potential customers. One strategy that has gained popularity in recent years is the “5 Contacts” approach. This approach suggests that it typically takes at least five interactions with a potential customer before they are willing to make a purchase. Let’s take a closer look at the meaning and benefits of the 5 Contacts approach, as well as statistical data for the percentage of sales at each contact.

Meaning and Benefits of the 5 Contacts in Sales

The 5 Contacts approach is based on the idea that building trust and rapport with a potential customer takes time. Each contact provides an opportunity to learn more about the customer’s needs and preferences, address their concerns, and establish a strong relationship. Here are some of the benefits of using the 5 Contacts approach:

Establishing Trust: Consistent contact helps to build trust and rapport with potential customers. As trust is a critical factor in any purchase decision, the more contacts you have, the more likely you are to establish a strong relationship.

Understanding Needs: Each contact provides an opportunity to learn more about the customer’s needs and pain points. This knowledge helps you to tailor your approach to better meet their needs, increasing the likelihood of a successful sale.

Addressing Objections: Customers may have objections or concerns that prevent them from making a purchase. By having multiple contacts, you can address these objections and provide more information that can help overcome their concerns.

Staying Top-of-Mind: Consistent contact keeps you top-of-mind for potential customers, meaning they are more likely to think of you when they are ready to make a purchase.

Closing the Sale: By staying in contact and building a relationship with the potential customer, you increase the likelihood of closing the sale. This is because they are more likely to trust you and feel confident in their purchase decision.

Statistical Data for Percentage of Sales at Each Contact

While it can be difficult to provide exact statistical data for the percentage of sales at each contact, there are some general trends that have been observed. According to the Marketing Rule of 7, it takes an average of 7 touches (or contacts) to convert a prospect into a customer.

Here are some estimated conversion rates for each contact:

The first contact has a conversion rate of around 2%

The second contact has a conversion rate of around 3%

The third contact has a conversion rate of around 5%

The fourth contact has a conversion rate of around 10%

The fifth contact has a conversion rate of around 80%

It’s important to note that these conversion rates can vary widely depending on the specific circumstances of the sale. The fifth contact is not a guarantee of a sale, but rather an indication that the potential customer is likely more receptive to making a purchase. The goal of the 5 Contacts approach is to build a relationship with the potential customer and increase the likelihood of a successful sale over time.

In conclusion, the 5 Contacts approach is a powerful strategy for building relationships with potential customers and closing more sales. By establishing trust, understanding needs, addressing objections, staying top-of-mind, and increasing the likelihood of closing the sale, you can improve your sales process and achieve better results. Remember, sales is a process that takes time, effort, and patience, but by using the 5 Contacts approach, you can make the most of every interaction and build a successful sales career.