Lead Generation is pointless if you don’t Close!
The Sales Director continued…
“Our №1 Sales Associate refuses to follow-up on Leads, now his close-rate has dropped below 28%”
In any B2C industry, we calculate Lead breakdown as follows — 20% Tire Kickers, 30% Maybe’s, and 40% Buyers. If the №1 Sales Associate is converting at 28%, he’s leaving 42% of real potential sales on the table. So, if an average sale is $1,000 and the Sales Associate receives 100 leads a month, he’s converting $28,000 and the business is missing out on $42,000. That sounds bad enough, but if you then factor in the Sales Associate salary, his bonus and the cost of the Lead — he’s losing the business big money.
I know it sounds insane, but this exact scenario is playing out in businesses across the US. I’m a believer in going after the low-hanging fruit, but this simply does not apply if the lifeblood of your business is converting leads into customers. The numbers always speak for themselves, so if your business isn’t making data-driven decisions, then you’re at risk of joining the thousands of US companies that close their doors permanently every year.
When we first met this client, the brief was to help boost their sales through our Lead Generation formula. But, if their sales team are only chasing the easy sales and discarding 42% of good existing Leads, then it makes no sense to invest in additional Lead Generation. Our solution was to invest the budget in a few simple operations systems to hold the sales team accountable. Now every Lead is golden, and the sales teams are pursuing each one accordingly.
Learn more about driving business operations efficiencies today @ juuced.com