If Sales Lead Follow-Up Jumps To 100%...
Most companies admit to only having a 10-25% follow-up of their sales inquiries. With so little follow-up they are only reaching, on average, 25% of the buyers. This means that 75% of the marketing dollars spent on lead generation are wasted. But what if we have a world where:
• Sales follows up 100% of the inquiries (all inquiries not just leads).
• Marketing measures the sales contribution value of every campaign.
I can tell you what will happen:
1. Sales will increase in 90 days.
2. Salespeople will make quota consistently when sales inquiries are followed up.
3. The turn-over in the sales force will be reduced.
4. Sales expenses will drop as average closure rates increase.
5. Marketing will be stronger and proud of its contributions to the wealth of the company.
6. Marketing management will become a builder of wealth not a spender of revenue.
7. Marketing will no longer be a variable but a fixed expense for lead generation.
This is already a reality for many companies. Maybe they are small in number, and they are secretive, because who wants to empower their competitors when the solution to increasing sales is so simple.
To become like them you need business rules for follow-up and measurement and a system to report on results. There is a requirement for enlightened sales managers who have control over their salespeople. And, you need a marketing manager who doesn’t mind being measured for his or her contributions.
It really is simpler than you think, but you have to think and act to make it happen.
For me, we can continue following up the leads but it depends on the "sales style". But we should remember the line between following up and harassing someone.
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Hello James,
Yes it's fundamental and you're right: most businesses don't do it.
I'm reminded of a quote from sales training a few years ago: You can't improve what you don't measure.
Unmeasured sales and marketing activities squander opportunities.
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Nice BLOG subject Jim, about 100% lead follow-up. But do you how many companies (people) don't want 100% follow-up? I have found lots over the past 22 years that don't want the extra work that MORE business would require. Crazy as that may sound, I have run into sales manager "types" that are happy with their salary, bonus, dynasty and the status-quo. Golfing with Fred in NC, fishing with Joe in MN, sleeping with Mary in (wherever) with little or no concern about anything MORE being sold. I know that sounds crazy, but if I hadn't seen it with my own eyes you'd have a hard time convincing me of the reality. Our service assures 100% lead follow-up, but I have toned down our USP (Unique Selling Proposition) to a 50% increase in follow-up that makes the increase more tolerable and worth pursuing. I know you know a lot of that and experience is a wonderful teacher. Richard Erschik
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Nate in Michigan
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I believe 100% follow up on every lead is crucial. I work in an industry where each lead closed brings in a steady flow of income each month so any lead that isn't taken advantage off is a potentially a big loss.
Jonathan Mac
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We do a lot of training with the auto industry and there are more than a few auto businesses who are nowhere near 100% follow-up.
One major reason we have found is that many of the people charged with following-up (usually salespeople) don't know how.
There is some great material on follow-up (as well as sales generally) in Neil Rackham's book 'S.P.I.N. Selling'. In particular, the distinction between a continuation and a progression is powerful knowledge for any salesperson.
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