Which Reminds Me of Another Mystery About Sales Leads
My best friend Bob tells a story about having the whole family over to his place one year for Thanksgiving. Sometime during the day he looked around for his children and noticed that none of them, nor any of his nieces and nephews, was around. He walked through the house and found the little ones, aged 3 to 10, sitting at his father's feet, looking up at their grandfather.
I knew Bob's father well and I can imagine his lanky frame as he sat on the edge of his chair bent over the grandchildren, his knees akimbo, his big hands in action as he told the children a story about the Mystery of Compound Interest.
Bob said he was transfixed almost as much as the children were as they looked up at their grandfather and said, "Tell us more, tell us more." Bob's father is gone, but his spirit and his stories about compound interest are live in a dozen grandchildren, and now maybe even their children.
This is a true story and so is the next axiom that follows, which is just as important.
Why it matters:
“Revenue swings and failed pipelines are from too few or too many sales leads per representative in a given month.”
If you want to have a predictable sales pipeline and the revenue it produces, create a consistent flow of sales leads, especially qualified sales leads for each rep, month to month. Make it match his or her quota to feed the pipeline.
Ask yourself, does a salesperson get three leads in one month and forty the next? Inconsistent inquiry flow leads to boom-and-bust reactions and is the reason for many revenue swings and failed pipelines. When this happens, many serious buyers get ignored because they had the ill fortune to inquire in a month that delivered too many prospects to their sales representative. Too many prospects, especially of the unqualified type, create a ‘roulette’ atmosphere of poor follow-up.
Questions to Ask Yourself
- What is my closing ratio for a product?
- How many leads does each rep need to make this quota?
- Can I adjust the flow of inquiries to the needs of each rep and their quota requirements?
- How can I make sure there is a 100% follow-up of all sales leads, by the reps and by Marketing?
- Do we have a defined sales lead management process?
I am sure Bob’s dad would appreciate the less mysterious result of constantly and steadily feeding the sales pipeline (did I mention he was vice presidents of sales?) as surely as he understood compounding interest.
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This is one of 56 Ways to Turn Around Failing Sales
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