Tweet

The 600# Gorilla named sales lead

Guest post by: Richard Erschik

Article Overview: Less than 20# of expensive sales leads ever get followed-up, and the problem has existed for decades. WHY isn't upper management furious?

The 600# Gorilla named sales lead

The older I get, the more obvious it is that most business related decisions are being made in companies today for NON-business related reasons. Keep reading and you'll know what I mean. Let me begin by stating that on my desk is an article from the (then) editor of Control Engineering magazine dating back to 1979. While both the editor and magazine are gone, I look at it every day.

In the article (from 30-years ago, mind you) the editor states that a CARR (Cahner's Advertising Research Report) identifies that less than 20% of sales leads ever get followed-up.

Today (remember, it is 30-years later) there are countless references being made to that exact same statistic (less than 20% of sales leads ever get followed-up.)

So again I ask... WHY ISN'T UPPER MANAGEMENT FURIOUS that after countless hundreds / thousands / millions of THEIR company's dollars are spent on print advertising, trade show exhibitions, Internet websites, company events, CRM installations, contact management software programs and other marketing campaigns -- more than 80% of resultant selling opportunities are being missed in the majority of resultant sales leads that don't get followed up? Are you beginning to see the Gorilla?

To back-up what I'm about to say, I need you to know that back in 1986 I founded a national sales lead response management service organization that American Airlines named "One of the most innovative companies in the country." And, I developed a process of managing sales leads that they also called a "Best-Practice" in trade show marketing as it related to a company's selling process. WHY? Because any company that used our service, and its process, was assured of 100% lead follow-up. GUARANTEED!

I should also make clear that over the course of my 2+-decades in the service business, my company processed more than 1,000,000 sales leads, made more than 1,600,000 telephone calls, transmitted more than 127,000 faxes and emails, and shipped more than 370 tons of client literature around the world. And yours truly actually made more than 1,000 personal sales calls trying to sell my company's service to people that couldn't care-less about the fact that less than 20% of their company's leads were being followed up. And I mean COULDN'T CARE LESS. Many even said that their follow-up rate was less.

In fact, when the 20% follow-up statistic was brought up during most of my sales calls, marketing people reacted as though they were happy to be within the "norm," rather than motivated to fix the problem. When I quoted that statistic to sales people, they naturally came up with excuses and got defensive. And when I quoted it to upper management they took the position of... "That isn't happening in my company. And if it is... you need to talk to so and so." (Who I eventually found couldn't care less.)

I could write pages about other push-backs I got during sales calls, for the obvious threats I made to the status-quo over the course of the 1,000+ sales calls. But instead, I'll fast-forward to today and simply state, here, that based on a lot of my own personal experience (some might call it street cred) I found that clearly... VERY FEW people really want to take ownership of the poor lead follow-up problem, or even consider taking the initiative to solve it. And here is what this writer suspects are reasons why.

Upper management people seldom wanted to look into the problem of poor lead follow-up. Especially if it meant they would eventually have to get involved in solving it, because they wouldn't be able to visit their company's trade show location where the leads are being generated. Especially when the trade shows are located in the 3 biggest playgrounds in the country... Orlando... Chicago... and Las Vegas.

BTW - If you have ever experienced upper management visiting your company's trade show... how long were they in the booth? Usually only long enough to make their presence known, then they disappeared, right? And maybe it was just a coincidence that they had their grandkids with them in Orlando, their wife in Chicago, and/or who-knows-who in Las Vegas with them. I'm just sayin...

I recently saw attendance figures from a significant trade show stating that 24% of the show's overall attendance was made up of Senior Management. I challenged the show organizer to verify how many of the (Senior Management) names appeared in exhibitor sales lead counts. They didn't want to do that, and I'm not at all surprised as to why. Because I doubt that the Senior Management walked the show floor and/or expressed interest in buying anything. They just wanted everyone to know they were there.

Further... I found sales people and/or their sales manag ers that certainly didn't want anyone to "rock their boat" with the reality of poor lead follow-up. Because they already had their budgets in place, lifestyle built around their income, and favorite dealers, distributors and reps to fish, play golf, and party with. Is the reason for the Gorilla becoming more noticeable?

And lastly, I found marketing people that certainly didn't want to take ownership in fixing the poor lead follow-up problem, because they are measured by the "numbers" of leads generated. And any process changes would have to involve their personal interaction with the sales force over in that "other silo", who would throw marketing under-the-bus in a heartbeat for muddying their waters of status-quo.

So marketing just throws the leads over the fence to the sales department and hopes for the best. And there's the 600# Gorilla just sitting there in the living room. And everyone chooses to ignore it.

If you have awareness of this situation, today, you well know that in most companies today, sales rules and marketing drools as the all too familiar blame-game marches on. Hup, two three, four.

Marketing has been blaming sales for poor lead follow-up, and sales has been blaming marketing for poor quality leads for more than 3-decades that this writer has actually experienced. And it will no-doubt continue. All while companies continue to invest jillions of dollars in CRM and marketing programs that get more leads to their sales force faster, so they can do nothing with them sooner.

Due to barriers of communication technology, today, sales people can't even reach anyone. So they are forced to live with their existing customers and ignore their prospects, all while pipelines, hoppers, sales funnels, CRM and contact management are all nothing but buzzwords, fluff and distractions from the Gorilla that's getting bigger and bigger.

The fact of the matter is that VERY FEW people want to fix the problem of poor lead follow-up, because God forbid someone might have to do something different, make a sales call, or actually talk to someone they don't already know.

The answer to the pervasive problem of poor lead follow-up and sales "prevention" is deeply rooted in "people" and the difference between sellers and order takers. Leads simply have to be processed differently in the marketing department to make it easier for sales people to follow-up. So... WTF?

WTF = What's The Future in lead generation, handling, and conversion to sales when individual self-interest is being put before company prosperity in every company but yours, right?

The End

The Beginning

I now conduct experiential seminars (for trade show exhibitors, to their exhibitors.) And DIY Workshop (atcompany sales/marketing) meetings.

In my previous life, I was employed in various sales and marketing positions for nearly 2 decades. In 1986, I solved the lead follow-up problem, and turned my unique solution into a very successful national service organization that American Airlines named "One of the most innovative companies in the country," and also a "Best Practice" in trade show marketing. Because the lead response management process I developed improves a company's selling process. Now, after more than 2-decades of personal and service business success, and the sale of the company to one of its customers, I am teaching marketers and sellers the secrets behind my industry proven process, as a solution to the pervasive problem of lead follow-up and new business identification. Upon implementation of the (Do-It-Yourself) process I teach, companies can enjoy 100% lead follow-up, new business, and proof of ROI necessary to protect their marketing and sales budget. My 60-90 minute exhibitor seminar and in-company workshop presentation is very affordable and includes useable templates along with 30-days of on-going FREE telephone support to help assure success. I have worked with hundreds of small, medium and large sized companies. This accelerated learning session may be just what you and/or your company needs as an addition to your next marketing and/or sales meeting to help your dealers, distributors and/or reps to focus on your products, identify new business opportunities and convert your... leads to sales.

I can be reached byphone at 630-642-6500

Related Articles
  The 800 Pound Gorilla Problem
  Increase Sales Means You Must Confront Those 800# Gorillas
  The 600# Gorilla named sales lead "Follow-Up."
  WHY ISN'T UPPER MANAGEMENT FURIOUS about the 600# Gorilla in their living room named -- sales lead "Follow-up?"
  Why hiring or keeping the 600lb sales gorilla is a mistake
  Consultative Selling Won't Fill Your Pipeline
  Direct Sales Strategies- Building Instant Rapport for Sales Success
  #1 Gorilla Marketing Strategy: Own Your Brand on Google
  Sales Training Courses that Bring Lead Generations to Life
  B2B Demand Generation Expert Brian Carroll to appear on Mad Marketing TV
  Judicial Branch Needed to Keep Sales Lead Management Honest
  Filling the Gap Between Generation and Conversion
  Brick Walls Make Sales
  The 600-pound Gorilla: How to Reduce Money Fights in a Relationship
  Good Lessons on Leveraging Events for PR
  The 18 Disciplines of Selling: Part 1: Rules
  Dramatically Increase Sales Conversion Rate Using Education Based Marketing
  Don’t Read This…Unless You Want To Have A Really Good Sales Meeting
  Franchise Solutions Named a Top 5 Portal for Overall Performance and Lead Quality by Franchise Benchmark
  Recession-Proof Your Mind (Part 2)

Article Tags:



Related Forum Posts
Homepage Promotions CAN work - I've also noticed with items that are popular, make them easy to find on the homepage. For example on a car sales website I made up an icon for a particular type of car and placed it on the homepage. Instantly we had a lead contact us within a week of the new icon being placed on the homepage when we had NEVER had 1 lead for this car in the last 12 months. Previously users would have to navigate through 2.5 webpages to find this car so it's definitely worked for us. Place priority products or services on your homepage in a convenient and attractive format. Try not to over do it either, maybe stick with 1 - 3 products max promoted products on the homepage to start off with to see if sales/leads increase. Also another idea (for an online bookshop) is if you stock a book that author is currently advertising themselves, place it on your homepage and take advantage of the Author's own marketing so if a visitor comes to your online bookshop looking for the advertised book, they will instantly see it on the homepage and may buy under impulse.
Re: What is your EVE Ratio? - Hi GT, Thank you for posting this. Like Michelle, the hard part is applying everything. I admit that mine is balanced, with entertainment on the lead, but with a very small lead. I was on a lecture last week, and one of the teachers said: it not the amount of knowledge you have, it's how you use it every day. So true.
Re: Kevin's Case Study #6 - Marketing an information resource? - Hey Sebastian, Congrats are starting to think beyond whats currently being done. My question is why do you want to get away from lead generation if that is where you make your money. What if you just because THE SOURCE for lead generation and high value content/information? Then you'd get more business because franchisors would HAVE to be listed with you.... J
My success this week - Congrats Jen, a New house is exciting - I know how you feel. I waited 3 years for my place to get built and now living in it is amazing. Success this week... I sent out three birthday cards to business owners last week and I received calls of Thanks which lead to a conversation of what I do and then lead to 9 new referrals for me to followup with.
Re: Seven Marketing Strategies To Attract The Affluent Buyer - I might run an ad through some sort of magazine catering to this demographic THEN turn the people to web. For example, I would do some type of lead generating activity, using specific domain, website (so I can track it) then load the leads into auto responder series. If I generate a lead, I'd know it came from that source because I traced it. It'd also depend on my goal - what would I do with it? Would I want to build opt-in list? Would I want to sell something immediately?


Share this article with your friends. Fund someone's dream.

Leave a comment below or share on the left and you'll help support entrepreneurs in Africa through our partnership with Kiva. Over $50,000 raised and counting - Please keep sharing! Learn more.

Newsletter

Get advice & tips from famous business
owners, new articles by entrepreneur
experts, my latest website updates, &
special sneak peaks at what's to come!

Name:
Email:

Popular Articles

Reverse Mentoring

Join Conversations Politely, Part 1

Work at home Opportunities for the Disabled

Suggestions

Email us your ideas on how to make our
website more valuable! Thank you Sharon
from Toronto Salsa Lessons / Classes for
your suggestions to make the newsletter
look like the website and profile younger
entrepreneurs like Jennifer Lopez.