One of the biggest causes of revenue leakage is when sales or marketing reps fail to follow-up (FTFU). You spend a lot of time and money to generate inquiries and then see the effort wasted. Not only is this bad sales and marketing policy, it can be fatal to the success of your sales lead management program.
Although it was for a low-ticket service, this simple example illustrates the point. I was looking for new oil change service and went online to search for local options. Finding a local auto repair company with solid online reviews, booked an appointment and they acknowledged my request and said that I would be contacted with a confirmation.
Two days later, I still had not received a confirmation so I booked a slot with one of the shop’s competitors. You probably guessed it – that’s when I received a confirmation from the original company. A few hours too late and the sale was lost. Multiply that sale by a bunch of others and it impacts revenue and profits.
Lessons from this Example?
When you wait over 48 hours to acknowledge a customer, this is a serious failure to follow-up. The difference is, the auto shop lost a $50-60 order (not counting follow-on revenue) while an enterprise software company or some other high-ticket B2B supplier can lose a sale of tens or hundreds of thousands. The stakes are higher but the principles are the same.
So what are the lessons of this example and how do they apply to your day to day marketers who are selling more expensive products and services? Here are several:
Always follow-up promptly
In the business to business world (B2B) 3-8 percent of responders may be in an active buying cycle. You need to engage with these people quickly – otherwise your competition will surely do so.
Don’t let your “busyness” stop you from following-up
The prospect doesn’t care how busy you are; he or she only cares about what they need and when they need it.
Quickly acknowledge the contact even when busy
If you are extremely busy, at least acknowledge the inquiry and set an appointment to talk in more depth at a later date. This may buy you some time while letting the prospect know you are not ignoring them.
Don’t prejudge prospects
I’ve seen sales managers tell their reps not to follow up on leads from an industry trade show because “those leads are always lousy”. This type of negative assumption is harmful because you never know about the quality lead you never bother to contact. This is also one of the reasons that I recommend that my clients put the lead qualification function in the marketing, not sales, department.
E-mail is an okay first contact
While a phone call is preferable, sometimes a quick personalized email is a good first step, even if that email is generated via auto-response.
Don’t practice optional behavior when it comes to sales lead management. Your follow-up strategy should be consistent and never subject to whatever else is happening in your business.
Fix Your FAIL TO FOLLOW-UP (FTFU) Quickly!
I have seen companies as small as the auto shop I mentioned and as large as a billion dollar software company, waste lots of money spent on inbound lead campaigns due to a failure to follow-up promptly. Not all sales leads are precious but unless you know for sure that a particular lead is unqualified, you need to follow-up promptly. FTFU is a disease that can be deadly to the B2B marketer. Don’t catch it and if you do, re-read this post and cure your FTFU immediately.