According to a recent study entitled Gauging the Cost of What’s Lost, conducted in Q3 of 2004, companies could be doing a lot more with current leads. The study includes the responses of 772 top decision makers throughout North America and represents most industries, with professional services making up the second largest group with 15.5% (after information technology with 16%). Companies interviewed had revenues ranging from a few million to several billions of dollars (with 55% making less than $10 million.)
Some of the findings include:
- 54% say they have no formal process for generating, qualifying, certifying and validating new business opportunities
- About 56% of respondents estimate they close only 10% or less of new business leads and some 35% say they close less than 5%. About 75% say they only close 20% of all leads.
- 48% of all respondents said it took six months or longer to close a deal from initial contact to signing on the dotted line.
- Only 22% of respondents have any process in place for re-qualifying discarded leads. 12% are considering such a process. And 61% have no process and no plans to implement one.
- 73% of respondents say they could increase revenues by at least 10% if their companies had more effective business development and prospecting practices. 37% say they could increase revenues by more than 20%.
- About 20% of companies surveyed spend less than 5% of their operating budget on sales and marketing. An additional 32% spend between 5-10% and about 25% spend between 10-20% (with the remainder spending more.)
Clearly, the study findings show that companies are leaving a lot of money on the table due to ineffective lead tracking systems. Creating a formal lead follow up and nurturing process can add at least 10% more revenue!
» Read Study: Gauging the Cost of What’s Lost
Also of note, MarketingProfs.com just published part 1 of an article called Revitalizing Lead Creation: Six Strategies That Work. Author, Stephen Diorio, describes 6 ways to revitalize lead generation in your organization:
- Make more time for leads.
- Keep better score.
- Use timing to improve targeting.
- Make the sales force your client.
- Look for growth in the “white space.”
- Use more interactive direct marketing.
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