How do I convert leads into sales?
Getting Started
If you are trying to grow your business, finding leads (that is, potential new customers), is just the beginning. Before they can benefit you in any way, you need to turn the leads into sales. This actionlist offers a systematic approach to doing this and to making sure that the leads are of the right kind in the first place, which will cut down on wasted time and resources.
FAQs
How far can services such as telemarketing take over from the salesforce?
These services can be used to handle many of the sales teams’ routine functions: carrying out initial research, qualifying prospective customers, making appointments, and maintaining regular contact. They should not be used as a substitute for face-toface selling if that is important to your customer relationships.
What is the best way to measure lead conversion?
Measuring sales as a percentage of initial leads is too simplistic an approach: it is more effective to measure at each stage of the process. For example, only 50% of initial leads may turn out to be suitable prospective customers. If the leads have been well qualified, the sales team may be able to convert 20% of the final prospect list. Measuring results at each stage helps you focus the right level of resources and plan future lead-generation programmes.
Should we try to get as many leads as possible?
The quality of the leads is as important as the number. Following up a large number of unsuitable leads is a waste of resources, but getting as many good leads as possible is important to any company that wants to expand its business.
Making It Happen
Qualify your leads
Your lead-generation programme may have given you large numbers of leads, but not all of them will convert to sales. Some may be poor prospects, while others may simply be gathering information rather than planning a purchase. Good prospects have the following characteristics:
the financial resources to purchase your product the authority to make a purchase decision a genuine need for your product or service the desire to learn more about your product plans to make a purchase in the near future
Telemarketing can be used to qualify the leads. Call the contact and ask for more details of their inquiry so that you can send information tailored to their needs. Just sending a brochure, with no accompanying letter and no understanding of the prospective customer’s needs, is a waste of money. Qualifying questions can include:
Are you the person who makes the purchasing decision? If not, who does? Is your company currently buying this product? What quantities do you buy, or how much do you spend on the service? When are you likely to make your next purchase? What information do you need on our product and company?
Choose a one-step or two-step process
In the case of some products and services, the lead-generation and sales conversion processes can be combined. These are known as one-step programmes, and are equivalent to direct selling operations. They are suitable for:
inexpensive products information services such as newsletter or magazine subscriptions office supplies software low-value financial offers
In a two-step programme, the prospective customer (prospect) requests initial information. You send the information and then continue following up until the prospect is ready to buy. Two-step programmes are suitable for:
expensive offers complex technical products professional services high-value financial services
Plan the conversion process
Lead conversion can be a long-term continuous process, the duration of which depends on the complexity of the product and of the decision-making process. For example, how many people are involved or how important is the product to the customer (or the customer’s business)? For a complex product, the process could be:
identifying key decision-makers
sending information to key decision-makers arranging meetings with decision-makers providing sample products for evaluation by the customer bidding for a contract against competition final negotiations purchase after-sales service and support
You must decide how you will handle each stage of the process, who will be involved in the sales team, and how you will manage communications with the prospect. Another example could be where the product and the purchasing process are simpler, but the prospect is reluctant to change suppliers. The conversion process could take a long time, so you must plan a programme to maintain contact and move the prospect away from the existing supplier. Actions could include:
personalised direct mail with product information regular updates on new developments in the company targeted special offers to encourage the customer to try the product
Allocate responsibility
Normally, the marketing department generates leads and the sales department follows up. It is important for the two departments to work together to integrate their activities and ensure that the company focuses on the kind of high-quality prospects it really needs. Sales departments frequently complain about the quantity and quality of leads. They want as many leads as possible so that the final number of new sales is high; however, they may also complain if too many of the leads are of poor quality and do not meet the right criteria. Collecting a large number of high-quality leads can be a
difficult balancing act. Some sales teams prefer to do their own qualifying, while others prefer to leave that to others so that they can concentrate on face-to-face meetings with prospects.
Back the sales team with telemarketing
Telemarketing can be used to enhance the performance and productivity of the salesforce. The telemarketing team can be responsible for following up sales leads, qualifying prospects, setting up appointments, and maintaining contact with longerterm prospects. This frees the salesforce for increasing the number of face-to-face meetings and for concentrating on the most likely prospects. The integration of telemarketing with the salesforce can play an important part in reducing overall sales costs. The cost of keeping a sales team on the road continues to soar, and it may not always represent the most cost-effective way of reaching the right people.
Maintain a contact diary
A contact diary can help you plan the conversion process and make sure that the sales team does not miss any important contact opportunities. It also ensures that the sales backup team integrates its follow-up activities with the field salesforce. Computer software is available which allows sales teams to operate a sales diary and record details of meetings and other follow-up activities. The same software can be used by the management team to monitor progress and ensure that no important contacts are overlooked. Contact diaries can include details on the customer, the customer’s likes and dislikes, availability for meetings or telephone calls, their buying limits/authorisation, and even personal information that helps maintain a relationship with them.
Track progress
It is essential to track progress at each stage of the conversion process. If the prospect is important, you may wish to allocate additional resources to win the business. If a prospect is of only minor importance but is taking time and resources, you may want to refocus the efforts of the salesforce. The progress from initial lead to customer goes through a number of stages:
raw lead: an initial enquiry from any source suspect: an enquiry that has been qualified and has the potential to become a paying customer
prospect: a lead that has been qualified in more detail inactive lead: a prospect who will not buy now but has future potential dead lead: a prospect who has little potential to become a customer customer
You might also include lapsed customers in this process as a source of qualified leads.
Choose the right contact frequency
A single mailshot, telephone call, or direct response advertisement may produce results, but a series of quality contacts will have greater impact and ensure you meet your response targets. Multiple direct marketing activities raise levels of awareness with each contact, follow up contacts who have not responded, and move individual respondents further along the decision-making process.
Use personalised contact
Personalised one-to-one mailings are an ideal form of communication for companies with detailed information on their prospects. The letter reflects the individual prospect’s main interests and concerns, and the offer can be tailored to the prospect’s needs. Subsequent mailings can build an individual relationship with the prospect.
Common Mistakes
Focusing on the wrong prospects
Sales teams have a natural tendency to deal with friendly prospects and avoid the difficult ones. From a business perspective, however, they may be dealing with the wrong people. The qualifying process should be used to identify the most important prospects in order to improve the targeting of the salesforce.
Poor management
Lead conversion can be a long, complicated process, so it is essential to monitor progress and manage the programme carefully. Lead conversion can use a lot of salesforce and telemarketing resources, and careful planning can make sure that it is carried out effectively.
Putting all the burden on the salesforce
In some organisations, the salesforce is given total responsibility for generating leads, qualifying them, and converting them into sales. This may not represent the best use of salesforce resources. Telemarketing or other tools can be used to supplement the salesforce and take over routine tasks.