Can your close rate be too high?
In our white paper we discussed the concept of Control Charts, and how they apply to marketing and sales. Control Charts are one of Ishikawa’s Seven Tools of Quality. They are quite useful in helping manage results.
Some of our readers have asked why you would want an “upper control ” limit for something that the more you get the better you like it? For example, why would you want an upper control limit on sales close rate? They understand a lower control limit on sales close rate, but weren’t clear on why you would want an upper control limit.
In truth, as many experienced sales managers will tell you, if you have too high a sales close rate you are probably not moving enough leads through the pipeline and are scrapping leads too early thus possibly moving viable opportunities out of your pipeline. This could also be tracked with the use of Control Charts at other points in the pipeline besides just at close. However, it is possible to have too high of a close rate, so an upper control limit is valid.