By John Sonnhalter, Rainmaker Journeyman, Sonnhalter
We’re all focused on generating more leads these days, but I find it ironic that most companies don’t do much with them once they get them. Simply fulfilling a request is not the answer, but yet many companies do just that. According to a survey of people who have requested info suggests that 80% of all sales are made on or after the third contact. The survey polled over 700 respondents with only 8% buying after the first call.
David Frey, the senior content editor and author of several marketing books advises, “An educated prospect is your best prospect, and if they haven’t become a customer, it’s because you haven’t fully educated them on the value of your product and developed a relationship of trust.” Why do many businesses have a problem following up with their prospective customers? Mr. Frey explained, “The problem is not that small businesses don’t have the capacity to follow-up with prospects, it’s that they don’t have the systems in place to do it well.”
In his recent newsletter, “Follow-Up Marketing: How To Win More Sales With Less Effort,” Mr. Frey advised, “A good follow-up marketing system should have three attributes:
- It should be systematic.
- It should generate consistent, predictable results.
- It should require minimal physical interaction to make it run.
This leads to a more pressing issue and that is, what is the difference between sales lead management and a CRM tool? According to Russ Hill, President of Ultimate Lead Systems: Sales lead management is a sub-function within an overall CRM strategy. Traditional CRM programs like Salesforce.com, SalesLogix, ACT, Goldmine, Maximizer and others focus on the sales person entering and managing his own data and pushing it “up” to management.
Sales lead management starts with management generating and capturing leads from all sources, fulfilling information requests and delivering them to the sales channel and tracking follow-up and sales results to measure marketing return-on-investment.
Here are some other interesting facts:
INQUIRIES MEAN NEW BUSINESS!
- 67% of all inquiries are from legitimate prospects with real needs.
- 34% have current needs that must be satisfied within 6 months!
- 70% did not know the company made the product before seeing their ad … making them NEW PROSPECTS!
A six-year study* of nearly 60,000 inquiries conducted by Penton Media Company also found that:
- 43% of inquirers receive literature and information too late to be of use.
- 72% of inquirers are NEVER CONTACTED by a salesman.
- 25% of sales contacts are made at the inquirer’s request.
- 40% of inquirers purchase the advertised product, a competitive product or change their suppliers.
* NED Reader Action Reports
The key is to get a lead management system in place that can help your CRM convert those leads into sales.