How’s your Follow-Up?
How’s your Follow-Up? by
VandegrandySales Manager to Salesperson: “We need more sales!”
Salesperson to Manager: “Then, get me more leads!”
This scene plays out thousands of times per day. Salespeople are hungry for fresh, new prospects. In fact, new leads are the lifeblood of a sales-oriented company. But before you pour more money into more advertising to get more leads, take a look at one of your most valuable possessions – your database of existing prospects.
I know, your salespeople have assured you that they’ve worked those leads to the bone; that there’s no life left in them – that it’s ‘new leads or die.’
Here are the facts:
Fact #1: Most buyers actually make their purchase after the 5th contact.
Fact #2: Most Salespeople only follow up once or twice, if at all. If they don’t get a response, they presume that the lead is dead.
A 2008 study of the housing industry in the Denver, CO area by QGenisys and Red Tree Resultants revealed that “faced with a motivated prospect, only 14% of the on-site agents followed up with the prospect with relevant information… and 64% did not follow up at all.” Subsequent studies show that we’re no better at following up with prospects today than we were then. As an industry, we might even be getting worse!
Why Follow Up?
First, why don’t salespeople follow up? The reasons are multiple:
• They didn’t use to have to, so they don’t know how; they’re used to ‘cherry-picking’ the prospects that are the most immediate buyers.
• Leads that they haven’t personally spoken with, such as company-generated, Internet and website leads, are too much like cold calling.
• They don’t really understand the cost to get a lead or a lead’s real value, i.e. earnings per lead.
• It takes too much time.
• The leads are not qualified.
• They don’t want to seem ‘pushy’…
On the other hand, following up with prospects in the right way will absolutely result in more sales. By keeping in touch on a regular, consistent and relevant basis you’ll develop rapport, build a relationship of trust, keep ‘front of mind’ awareness, and prove that your interested in the prospect, not just in the sale. You’ll also be able to coax the prospect to the ‘next step’ in the buying process. But you can only do this by following up.
1st Law of Follow Up: With any given prospect, the number of follow-up communications – and their relevance – is in direct proportion to the likelihood of making the sale.
2nd Law of Follow Up: The more qualified the lead, the easier it is for the salesperson to follow up effectively.
What salespeople want is to be able to spend their precious time in front of qualified buyers, moving them through the process to close the sale. What they hate is the qualification process, which takes so much of their time. Give them qualified leads, and they’ll deliver results.
So, let’s go back to your database of leads. What you need is a way to separate the buyers from the non-buyers; to identify the hot leads before they go to your salespeople for follow up. There are two ways to do this:
Sales Assistant or Call Center
A sales assistant’s job is to qualify leads in your database. They don’t sell, they merely qualify by making and maintaining contact with prospects until they reach a specified level of interest. Then, the lead is turned over to a salesperson. Sales assistants typically are paid an hourly wage, plus a small bonus for each lead that they turn over that converts to a sale.
This process can also be outsourced to a professional call center where trained marketers will follow a script you provide them to nurture your leads. If you have too few new or database leads to warrant a full-time hire, using a call center might be a viable alternative.
Automated Sequential Marketing
Or, you can automate the process. Many current Customer Relationship Management (CRM) programs, such as SalesForce.com, Lasso Data Systems, and others, can deliver a sequence of messages automatically to your prospect list. These can include email, postcards, letters, even prompt you when it’s time to make a phone call. You set the timing and the messages, and the program does the rest.
Included in each message in the sequence is a call to action that, if a prospect responds to, will indicate a higher level of interest in your community or home. When enough actions are taken, a salesperson in alerted and a personal contact is initiated. The salesperson will then have not only a hot lead, but ample information on the buyer’s preferences from their reviewing their prior actions and responses.
Which solution is best for you? The most cost effective way to nurture a database of not-yet-qualified leads is to use automation software. You’ll find web-based programs starting at well under $50 per month. (For a list of CRM solutions specialized for the housing and real estate industry, email me at dongrandy@qthree.ca )
But, why settle for just one? Start with an automated marketing system, then add a sales assistant to chart lead responses and make the initial personal contact. The result will be activity throughout your lead base, and your salespeople will be thrilled that they’re able to spend more of their sales time in front of real, qualified buyers.
And more sales will be sure to follow.
About the author: Don Grandy is a sales and marketing coach, consultant to small business and lifelong learner. He is co-host of BuilderRadio’s weekly Internet radio program and is the owner of QThree Marketing.
Contact Don:
Email: dongrandy@qthree.ca
Website: http://www.qthree.ca
Don’s blog: http://blog.qthree.ca/
Don’s Free Marketing Start-Up Guide: https://builderradio.infusionsoft.com/app/form/d9ecf5218da0c8446fcbdb0c06244c19
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How’s your Follow-Up?
