Question

Topic: E-Marketing

Only 7-10% Of Leads Converted In Sales

Posted by Anonymous on 11/18/2009 at 3:53 PM ET 50 Points
Hi, I run a design related services company , all of our enquiries come form our website, but the sales person in charge of then is only converting 7-10% of the enquiries into sales.F
rom 50-70 enquiries a month, we are getting only 3-5 jobs.
All the customers are very happy with us and our portfolio is impressive, maybe we are pricey but the customers that enquiry already know that.
I have explained to the sales person and the excuse is always that the customers are not sure etc, that they will call back or we will call back, but of course they never do, and by the time we call back they have changed their mind.
I am almost sure that the problem is in the sales persons, and that need to change but I would like some advice.
anyone that can give me some advice I much appreciated

Thanks in advance

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RESPONSES

  • Posted by michael on 11/18/2009 at 4:01 PM Member
    Is the sales person an employee or owner or independent? It may not be the person, but the arrangement.

    My suggestion is that you sit with him/her on the next 10 requests.

    Michael
  • Posted by telemoxie on 11/18/2009 at 4:46 PM Member
    in addition to the points raised by Vincent, one might also look at the quality of your sales collateral, the terms of your initial sale to a new customer, the guarantees that you offer, and so forth.

    Do you have a website we could look at?

    I am not sure that seven to 10% is so bad. The standard rule is that 80% of your results come from 20% of your leads. Maybe your salesperson is closing between a third and a half of your hot leads.

  • Posted by Gary Bloomer on 11/18/2009 at 6:16 PM Member
    Dear v_0,

    Great advice above.

    Gold. All of it.

    You may not like what you're about to hear but sadly,
    sales is not marketing.

    Marketing isn't about selling things.

    It's about establishing relationships and offering solutions in compelling ways, solutions that solve people's problems.

    Does the sales person know anything about marketing and are they invested in your service delivery process? How did you hire this person and were they unwittingly and unintentionally set up to fail from the beginning because your company higher ups lack the overall vision of the role of marketing in business?

    I don't know, but before the sales person is apportioned any blame or responsibility the questions need to be addressed because whether you like them or not, alas, they have validity.

    Is this sales person expected to push out messages that have been given to them, warts and all? Or are they part of your process?

    If this person is expected to follow instructions and is paid a flat rate they'll have little in the way of incentive to do the best they can for you.

    For marketing to WORK, it's got to: identify a need, establish rapport, build up relationships built on mutual knowledge, liking, and trust, and it's got to pile benefit and value on top of more benefit and value in order to persuade prospects that the services or goods being offered are worthy of their time and money.

    I don't care how many sales people a company employs, there's no company on Earth that will convince people to buy-in to their services if their customers don't feel valued and if the customer's outcome and the benefits and value they'll gain as a result of doing business with the company aren't completely aligned with their desired end result from having worked with that company.

    Realign your sales person and make your marketer. Fold them in to your philosophy and bring them on board. Shut them out and your figures (which, by the way are pretty good and BETTER than zero) will remain as they are or they'll fall.

    I hope this helps.

    Gary Bloomer
    Wilmington, DE, USA



  • Posted by Peter (henna gaijin) on 11/18/2009 at 10:12 PM Accepted
    I am with the others.

    First - 7 to 10% closure rate from leads garnered from the web site is not bad.

    Only thing I see in your post that could be an improvement for the sales guy is follow up. There should be a follow up plan in place for the sales guy. After the first talk, he should then follow up in something like 3 days or so, and then once a week for a few weeks after that.

    Maybe there is more improvements, but I didn't see any hints of it in your post. Though I suspect that it isn't necessarily the sales person that needs to be fixed, but the offer and what you have that supports the offer. The thought of sitting down with the sales guy and seeing what the concerns are, and then addressing those that appear to be valid concerns, isn't a bad one. Maybe you will find that those that don't sign up are concerned they won't get enough value for what they pay for, in which case you would find ways to show that value (perhaps through showing what prior clients gained from using you). Things like this may come up.

    You can also look at the other side - how do you get more leads to the web site (which if closed at 7-0 % rate, will then give the company more business).
  • Posted by Jay Hamilton-Roth on 11/18/2009 at 11:40 PM Accepted
    Lots of great thinking. Echoing thoughts from above:

    Have you truly asked your non-closes why they didn't hire you? Did you not convince them that you're the best for their needs? Did you not convince them that your price is the best for their budget? Were they not serious about needing your services TODAY? Do you know when they'll need your services?
  • Posted by Levon on 11/19/2009 at 11:45 AM Member
    I bet if you gave him / her a fat commission the conversion rate would increase.
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