Never create fewer leads than the total number of products sold in your marketplace each year.
Losing and don’t know why? Here’s at least one part of the answer. If there are 20,000 products sold in your marketplace and you are only producing 1,500 leads, guess why you can’t make those large market share gains you promised? Of course, you have to have enough salespeople to follow-up on the quantity you produce and the guts and budget to do it. If you are large enough, this must be your goal.
I think it’s fair to say ninety percent of all companies fail to uncover all of the available buyers in the marketplace. It’s a simple numbers game: More inquiries produce more leads and more leads produce more quotes which bring in more sales.
For smaller companies, it is a matter of consumption. How much can you spend on lead generation and can the salespeople follow-up everything you produce? In truth, many can't afford to uncover the total number of buyers, even if they had enough salespeople to follow-up.
So, the steps are simple:
- How many units do you need to sell? Say it is 1,000.
- If you have a 100% follow-up process, and you close 25% of the leads, you will need 4,000 raw leads (not qualified).
- If you find 1,800 qualified leads, you should make your number.
Do you have a large enough sales force or distribution system to handle the load? If not, send the leads to an outside telemarketing firm to qualify prospects.
Why it Matters
"Making the forecast is a matter of consumption. How much can you spend on lead generation and can the salespeople follow-up everything you produce? "
Yes, of course, is it more complicated than this (not much), but this will take you a long way to making your numbers. If you dig a bit deeper you will see that an average company's current forecast will account for 30-50% of the next 12 months sales. A planned lead generation program of raw and qualified leads will contribute hugely to your growth if the follow-up is there.