If we are to increase our conversion of inquiries to sales, we need to cre- ate a new capability that is rarely found in B2B companies. A lead- development system assumes the responsibility of keeping the inquiry alive and moving the individual and/or company along the buying process until such time as the party should see, or requests to see, a salesperson. Some companies have called this process lead nurturing. The need for this sys- tem is particularly acute if the sales cycle for the product or service is lengthy and the purchase involves many steps and individuals.
This lead-development system is the responsibility of either the mar- keting communications department or an inside sales group. The clear assumption is that a face-to-face sales call is not cost-efficient at this junc- tion and that, moreover, the potential customer probably doesn’t want to see a salesperson. This is a major change in thinking on the part of sales;
in the past, any potential customer was sent to the field for follow-up. In traditional sales organizations that have always had all potential custom- ers sent to them, a lead-development system will face stiff resistance. To address this situation in creating your system, here are several recom- mendations to consider:
• Benchmark how many inquiries translate into sales now. This may be difficult, as most companies don’t know the real number. If you don’t have the information, then estimate the conversion rate, and get some agreement among key sales and marketing people. Normal numbers are, believe it or not, 1 to 3 percent. In part, this low rate is due to poor or nonexistent lead-qualification-and-development systems and the feeling that the “leads” are no good. At least you will have a useful starting point.
• Talk to sales, explain what the company wants to do, and obtain input from the group. Salespeople will normally resist at first, but they also recognize that many of the leads they receive aren’t followed up or are dropped after one call. Concentrate on the benefits to them that this
system will produce. Better leads, more sales, higher commissions, an eas- ier job, and the like, are all things salespeople desire. Listen to their input, since much of what they know can and should form the basis of the new system. In addition, they will know that the system has been created with their contributions and will therefore be much more accepting than they would if it were sprung on them at a sales meeting.
• Test the lead-development system. This is important, as no matter how much you know, the actual process will not be what you started out with. Begin with a sample of inquiries, or a territory in which a sales- person is cooperating. If you have a choice of salespeople to involve in the test, select an opinion leader within the sales group. This person’s sup- port and eventual recommendation will be key to acceptance by others in the group. Start small and measure the ROI so a larger program can be justified to management.
• Keep in mind that much of the lead development will be done by telephone, and this medium is controversial. One of our clients even asked if we had another name for telemarketing, as the people with whom we worked were hesitant to present the concept to management for fear of the negative feedback that they expected based solely on the term tele- marketing. Today the department is called the “sales opportunity devel- opment group.” There’s not a tele-word to be heard in the hallways.
• Clearly identify the buying process for each lead-development pro- gram, and chart the progress of a lead through the buying process. Agree with sales regarding at what stage of the buying process the lead should be handed off to the group. Doing so has two important benefits. First, members of the sales group will know that if they don’t have the lead, it has not yet reached the proper point, and they will be more patient. Sec- ond, and more important, when they finally get the developed lead, they will pay more attention to it than they did to prior leads. Don’t forget that you need to change years of behavior on the part of sales. This may not be easy. The key will be their knowledge that when they call on the lead, the opportunity for a sale is real. Salespeople will respond to this.
Also keep in mind that the buying process, as detailed in Chapter 3, will vary by the product or service and by the market segment.
• Allow sales access to the database of leads that are in the devel- opment process. Salespeople should know what’s going on in their terri-
tories, and they may well have input or other information that will move the lead along. If the data are kept from their view, there will be hard feelings as well as a price to pay, once the lead is sent to the field, in poor follow-up and feedback. They must feel that this is as much their pro- gram as it is the marketing department’s.
• If you are in a highly competitive market, benchmark the compe- tition to see if they are performing any type of lead development. If they’re not, you will have a competitive advantage as a “first mover.”
On the other hand, if they are performing a lead-development or lead- nurturing effort, they have the competitive advantage. That news will work to motivate management to support this process and will shortcut the justification needed to budget for this added expense. Years ago, I was working with Roadway Express on database marketing, and the acceptance was slow until an article in a sales magazine referenced the fact that Yellow Freight, one of the company’s competitors, was charg- ing ahead with a similar system. Boy, was there a change of attitude and support!
Summary
A well-designed and well-thought-out lead-development system is one of the new fundamentals that must be instituted.
The economics of a robust lead system can be difficult to justify to management. Until proved and measured, the system may appear to be only an added expense. Many times, I hear, “If we need a better lead sys- tem, then the salespeople must not be doing their job.” The hard truth is that this attitude does not reflect the reality today. Not only are calls per day down from four to three, but even customers, let alone potential cus- tomers, don’t want to see salespeople. There is no greater productivity improvement in B2B than that found in a well-designed lead system. Over the many years, we have spent millions of dollars in inquiry generation and sales organizations. The missing process step is the lead system that bridges the gap between inquiry generation and sales conversion.
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The lead-qualificationprocess described in the preceding chapter is one of the most important elements in developing the new sales coverage model. The lead process is badly broken in most companies, and that defect is a root cause of poor sales productivity. As mentioned, obtaining input and agreement from the sales group is key in being able to execute an improved lead process. Unfortunately, your job doesn’t stop with hand- ing off the lead to the sales group. One of the overall mandates is to sell more, and marketing people must begin to assume more accountability for results and not just activities. Therefore, working with the sales group extends through the sales-conversion process. Obtaining feedback will therefore be critical to analyzing if the leads that are being handed off do meet the qualification criteria and produce sales results.