Rethink your first call strategy to boost conversions by 2.5x

A few weeks back, I was analyzing a call with one of my recent clients. He's the founder of a data management platform with a monthly recurring revenue (MRR) of 21k€. Luckily, he was able to generate some leads, but struggled to achieve a conversion rate higher than 13% for each prospect in his pipeline.

The call lasted for 30 minutes. Within the first 5 minutes, it became clear why his conversion rate was only 10%: he completely lost control of the deal during and after the initial call. Why did this happen? Because he fell into the trap of what we refer to as "demo selling." After exchanging a few introductory words, my client immediately started demonstrating his product to the prospect.

This turned out to be a major mistake for two key reasons:

Reason 1: He was unable to deliver a properly tailored demo to the customer. This is why I mentioned that he lost control not just after the first call, but also during the call itself. The demo failed to address the prospect's unique needs and challenges in a personalized manner. Specifically, it did not align with the way the prospect perceived their own needs and challenges. This aspect is far more important than the actual needs and challenges. Even if he had experience and knew what this type of prospect typically looks for, presenting all the product features in a standardized manner is never the optimal choice during a sales process. Firstly, it diminishes the prospect's focus on the essential versus desirable features. Secondly, it prevents him from tailoring his pitch to these specific customers, resulting in a lack of resonance.

Reason 2: He missed a valuable opportunity for a thorough discovery process, which may not present itself again at this level. During the initial calls, it is crucial to ask a multitude of questions in the best interest of the prospect. This enables tailoring the subsequent steps, including the product demo, to their specific use case. By starting with the demo, as my client did, the entire call becomes focused on it. This often leaves only a few minutes at the end of the meeting for crucial aspects such as discovery, qualification, and scheduling the next steps – the three most vital elements on your part.

After the call ends, it's important to remember that the prospect holds the reins of the process. They have the power to decide whether or not to reach out to you. This is why conducting a thorough discovery process is crucial. Without it, my client fails to grasp why the prospect is unresponsive to their emails and calls. Moreover, they miss out on the opportunity to understand the prospect's reaction to their pitch, which could have significant long-term implications for the company.

I don't hold my client responsible for this. He never received adequate sales training and genuinely believed it was the right approach. He didn't fully grasp initially why and how not overwhelming the prospect with all product details during the initial meeting(s) could actually improve the sales process for both him and the prospect.

Let's explore the optimal approach to handling the call in just 2.5 steps, empowering you to apply these techniques to future conversations.

Step 1: Qualification.

Before moving forward, it is crucial to determine if your prospect fits your ideal customer profile (ICP) and niche. Time is your enemy, especially as an early-stage startup. You should invest your time wisely by focusing on your best prospects. To achieve this, establish your qualification criteria in advance and assess them during the call. Ideally, initiate this evaluation at the beginning of the conversation to determine if there is a good fit and allow for necessary adaptations. By identifying early on that a prospect is not suitable, you can avoid wasting your time and theirs. As an early-stage SaaS startup, it is essential to prioritize prospects who align perfectly with your goals.

Step 2: Discovery.

The key is to thoroughly understand your prospect's needs, challenges, and desires. While your product can be applied to various use cases and situations, your role is to customize the demo to fit the prospect's specific situation. This is not about manipulation; the prospect wants to see how your product can address their unique needs, and they want to hear it in their own words. By using their language, you can establish rapport with the prospect.

Additionally, since you usually have limited time during the first call, it's important to focus on the features that will have the greatest impact on your prospect. The ultimate goal is to secure a second call. Even if you believe you know what's important to them, sometimes you may not fully understand their priorities. It could be a small feature that addresses their immediate challenges and captures their interest in the sales process. Avoid getting caught up in boasting about your latest AI feature, as this could cause you to lose the prospect by overlooking their specific needs.

Step 2.5: Demo your product.

While I advised against starting with a product demo, it's important to recognize that prospects often associate value with seeing the product. However, solely focusing on delivering the best demo is not advisable. This approach may lead you to showcase as many features as possible, neglecting the crucial aspects of discovery and qualification. Instead, consider showing a portion of the product that generates interest and curiosity, while also serving as a helpful tool for the discovery process. During this demo, you can incorporate discussion questions about their needs and challenges. This way, you can strike a balance between showcasing the product and gathering essential information from the prospect.

By implementing a well-defined qualification and discovery strategy, along with strategic tactics, we have successfully increased our conversion rate from 13% to an impressive 31% between the first and second calls, in just a few weeks. This translates to a 2.5x improvement!

I am confident we can maintain this ratio throughout the entire sales process, leading to the ultimate conversion event: the closing rate. Let's wait for the results at the conclusion of the ongoing sales processes in a few weeks.