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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 action list 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.

How far can services such as telemarketing take over from the salesforce?

These services can be used to handle many of the sales team’s routine functions: carrying out initial research, qualifying prospect-ive customers, making appointments, and maintaining regular contact. They should not be used as a substitute for face-to-face 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 con-vert 20% of the final prospect list. Measuring results at each stage helps you focus the right level of resources and plan future lead-generation programs.

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 program 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 BANT characteristics:

  • Budget: the financial resources to purchase your product
  • Authority: the authority to make a purchase decision
  • Need: a genuine need for your product or service
  • Time: 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 time and 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 programs, and are equivalent to direct selling operations. They are suitable for:

  • inexpensive products
  • information services such as newsletter or magazine subscriptions
  • office supplies
  • low-value financial offers

In a two-step program, 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 programs are suitable for:

  • software
  • 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 program to maintain contact and move the prospect away from the existing supplier. Actions could include:

  • personalized direct mail with product information
  • regular updates on new developments in the company
  • targeted special offers to encourage the customer to try the product

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