Sales Leakage Feed

Story: Building a Lead Gen Plan Based on Individual Quotas

Never Give UpHow do you know,” I asked the marketing manager, “how much money to spend on marketing, and how many inquiries and leads to produce?”

 “I do what we generally did last year, and create as much demand as I can,” was her reply.

“We have a marketing plan,” she continued with some obvious pride. “And we list what we have to do for the year and stick with it.”

“When do you consult with the sales manager about quotas?” I asked.

"Well, kind of...eh, we don’t really I guess.  We know the forecast she has to hit,” she said with some doubt in her voice.  “Why do you ask?”

“The issue is if you know the sales forecast for the whole year, you also have access to quarterly and monthly forecasts, as well as the salespeople’s individual forecasts.  Armed with this information, you’ll know how many inquiries and leads you must create per salesperson based on the average closing rate per product.”

“Umm, so what you’re implying is that I should create the number of inquiries each rep will need to make quota based on their closing ratio?”

Why it's important?

“Umm, so what you’re implying is that I should create the number of inquiries each rep will need to make quota based on their closing ratio?”

“Yes, but you needn’t go all the way to the rep level on their closing ratio,” I said.  “You can take the average closing rate of the company as a start.  If the company closes 25% of the leads you give them, you’ll have to give them 3-4 times the number of leads as a minimum to make quota.  Doing it by rep is possible but that is the next step when you’ve mastered the first step.” 

“But,” she stammered with obvious frustration.  “I don’t control follow-up; these guys don’t follow-up what I give them anyway.”

“So, do you give up,” I asked?  “The initial follow-up can be done with your marketing automation system.  Then you have to convince the salespeople by reporting from the CRM system that it is in their best interest to follow up every lead.”  

“But…but, the sales manager isn’t any better than the reps,” she sputtered with a biting, angry tone to her voice.

“You’re justified in being upset,” I said. “But you can’t give up.  Meet with the sales manager and explain that you’ll be creating gross demand based on his forecasted sales and the closing rate of the sales leads.  100% follow-up is in his and their best interest.  As they get better at follow-up, you’ll get better in generating superior-quality sales leads.”

“Do they respond?  Will they do it? Does this work?  How long does it take?” She asked in quick succession. 

“What do you have to lose?” I asked.  “Your salespeople aren’t making quota now.  Give them more qualified leads and increase follow-up and sales will increase.  It won’t take longer than a quarter or two for them to understand the connection.”

And she did.  Shifting to a marketing plan projection of sales inquiries based on average closing ratios gave her a number to shoot for in the plan.  Follow-up started with the marketing automation system and finished with a campaign of follow-up improvement by salespeople.

It worked. 

 Always does.


13 Lessons for an Interim Sales Manager

Most "interim sales managers" are hired in times of stress.   These sales consultants are expected to swiftly “right-the-ship.”  During this podcast, James Obermayer, who successfully increased sales, reshaped marketing departments, created SWOTs and Sales and Marketing Plans, for more than 50 high tech clients shares the 13 lessons he learned while at Sales Leakage Consulting. This session is for sales consultants and interim sales and marketing managers (Interim CMO's are also welcome).

About James W. Obermayer

Four-time author, interim sales and marketing manager at high-tech companies, Obermayer founded Sales Leakage Consulting, the Sales Lead Management Association and the Funnel Media Group.


SLMA Radio is hosted by James Obermayer of Funnel Media Group which is a program on the Funnel Radio Channel.  Funnel Media Group is the sponsor of SLMA Radio

Funnel Media Group, LLC   


You Still Have Time to Turn Around Failing Sales to Make Quota

This ebook is the most popular on the Sales Lead Management Assn., and Funnel Media Group sites.  

‘How to Turn Around Failing Sales’ - Ebook

56reasons-coverAuthor and publisher James Obermayer discusses 56 reasons companies fail  to reach sales forecasts and what to do about them.

The Funnel Media Group (FMG) has released an ebook entitled How to Turn Around Failing Sales: Fifty-six reasons companies fail to reach revenue forecasts and what to do about them. 

The author, Funnel Media Group Publisher James W. Obermayer, draws on 20 years of experience as the principal of Sales Leakage Consulting, which is owned by FMG. 

He is also the producer for the Funnel Radio Channel programming and founder of the Sales Lead Management Association, all of which are part of FMG.   The ebook, released through the Sales Lead Management Association ( a FMG company) is free, not gated and can be accessed here.

Why it’s Important:

 "Of course, there are many reasons why sales dump at mid-year.  But I have found these 56 to be the main causes of sales failure. Some have are easy fixes, some are things to avoid, some are long-term fixes, some cost money, and some simply require policy or rule changes and common sense. Most can have immediate impact."

James  W. Obermayer

This ebook is unique.  It not only lists 56 ways to turn around failing sales, but also grades each tactic with ascending dollars signs from one to five to indicate the ROI that can be expected by addressing the issue.   Offered as a PDF form, the ebook allows the reader can fill in spaces to assign a specific problem area to a named individual, with a place to enter the date by which the reader wants the issue fixed.

How to Turn Around Failing  Sales, also references books and white papers that can assist the reader.  Those referenced did not pay to be a part of the work. 

The work is divided into five sections:

  1. Sales and Management Problems
  2. Marketing Management Fixes
  3. C-Level Management Challenges
  4. Incentive Compensation and Quota Failures
  5. Hiring the Right People: Training and Testing

White Paper Title: How to Turn Around Falling Sales

Subhead:  56 Reasons companies fail to reach revenue forecasts and what to do about them.

Length: 25 pages including photos and illustrations.

Links to other information: Nine

Summary:  This is a list of reasons why sales fail to make forecast from the experience of the author.  It is a fast, easy read that strikes at the heart of sales issues faced by most B2B companies at one time or another in their sales year. 

Readership Profile:

  • CEOs
  • Presidents
  • CFOs
  • Sales Management
  • Marketing Management

ebook Link

About the Author: James Obermayer is the president and publisher of the Funnel Media Group.   He is a four-time B2B book author and founder of the Sales Lead Management Association.

About the Funnel Media Group:  The Funnel Media Group (FMG) owns the Funnel Radio Channel, Sales Lead Management Association and Sales Leakage Consulting.   The Sales Lead Management Association (SLMA), founded in 2007, has 6,900 worldwide members.  The Funnel Radio Channel  (FRC) publishes live streaming internet radio programs (and follow-on podcasts) for at-work listeners.  

 


What Salespeople Obtain too Cheaply, They May Esteem too Lightly! Leads for instance?

Thomas Pain said, "What we obtain too cheap, we esteem too lightly, 'tis dearness only that gives everything its value.”  Until salespeople realize the time, effort and company treasure that goes into lead generation, they seldom value the gifts they are given.  They don't have to work or for the sales leads so they take what’s given very lightly.

Continue reading "What Salespeople Obtain too Cheaply, They May Esteem too Lightly! Leads for instance?" »


Do your Salespeople Waste Time Generating their own Sales Leads?

060211-elevatorpitch 

No one waits around the elevator to get leads, at least we hope they don’t, but how many other actions do your salespeople take to get their own leads which are unproductive?  I know salespeople aren’t literally waiting at the elevator to get leads and yet some people say cold calling by knocking on doors is dead.   However, I know medical device salespeople who are successful at it and are not ready to give it up.  Some say cold calling on the phone is dead and yet I know many salespeople making hundreds of thousands of dollars selling on the phone.  

Because I have a marketing background, as well as sales management, I think that the most productive effort salespeople can make is following up on qualified, sales ready leads.  If you can supply your sales reps with 15-25 qualified leads a month, none of them will be caught near the elevator cold-calling.   Of course a marketing automation system to qualify and create the leads and a CRM system for tracking (and qualifying) helps tremendously. 

 The sponsors for this cartoon are Sales Leakage Consulting and The Velos Group.

You can copy this cartoon, leaving in the sponsorship names and use it for your own purposes. 


Having lost sight of our objectives, we need to redouble our efforts!

IStock_000003420564SmallHow many times, as sales slip and sales reps complain about marketing, have we heard Marketing say they will redouble their efforts? It isn’t uncommon to believe that to increase sales you should increase sales activities. But let’s back up for a moment and decide first what the objectives are before spending more money to create more leads that are often ignored in the first place.

If sales are slipping, review/do the following:

1. Is sales lead follow-up at the 60-80% level at any given time (20-40% is still in the pipeline)? ____ Yes ___ No

2.If follow-up is not happening:

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Listen While You Work: “Why Your Sales People Are Losing?" SLMA Radio Interview from Patricia Fripp

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It happens every year, salespeople are behind in quota, competitive sales that should come to you slip through your salesperson’s hands. The problem is that you very seldom know why. Host Susan Finch interviews Patricia Fripp, the woman with boundless energy and bottomless wit to get to the heart of the lost sales issue. 

 Excuse abound: 
  • Pricing is too high
  • A product isn’t good enough
  • The marketplace sucks  
  • The weather was bad on the east coast 
  • Hurricanes in the south tornadoes in the Midwest
  • And fires, floods, earthquakes  and freeway shootings in the west. 
 

Continue reading " Listen While You Work: “Why Your Sales People Are Losing?" SLMA Radio Interview from Patricia Fripp" »