Monday, September 23, 2024
You’ve done everything right: you’ve got individuals demonstrating intense engagement which according to marketing are generating a solid stream of leads.
The pipeline looks promising.
But there’s a problem—those leads aren’t converting, or worse – they aren’t being followed up properly. The sales team is pointing fingers everywhere except at their own processes.
It’s time to face a hard truth: even the best leads will go cold if sales follow-up is inadequate. Marketing can hand over leads on a silver platter, but without timely and persistent follow-up, the return on investment (ROI) will never materialise.
This isn’t just an opinion—it's a fact backed by data. Research shows that 48% of marketing-qualified leads (MQLs) only get called once, and after that, they are often forgotten. Considering the time, effort, and expense that goes into generating those leads – digitally and through events, letting nearly half of them fall through the cracks is not just a missed opportunity - it’s a massive business failure.
The importance of timely follow-up
The saying "strike while the iron is hot" couldn't be more relevant when it comes to sales. Leads are most receptive in the early stages of showing interest. A study by LeadResponseManagement.org found that the odds of contacting a lead decrease by 10 times if the first call is made more than a day after they trigger high intent. More than that, likelihood drops even further.
Despite this, many sales teams are slow to react. In fact, more than 35-50% of sales go to the vendor that responds first. Yet, companies take days – sometimes weeks — to follow up with interested prospects. And worse, even when that initial contact is made, nearly half of those leads only get one call.
The follow-up funnel: turning MQLs into revenue
If the sales team isn’t persistent, it doesn't matter how good the marketing is or how well-targeted the leads are. A single follow-up call isn’t enough. According to InsideSales.com, it takes an average of 6-8 touches to generate a viable sales lead. Yet, too many salespeople are giving up after just one or two attempts. Imagine all the potential customers who are interested but need a little more time or information before committing. If your sales team isn’t prepared to nurture these leads through consistent follow-ups, they’re leaving money on the table.
This lack of persistence is particularly damaging when you consider that 48% of salespeople give up after just one follow-up attempt, even though 80% of sales require at least five follow-ups. The problem isn’t that the leads aren’t good; it’s that the follow-up process is flawed.
The cost of missed opportunities
For companies with long sales cycles or high-ticket products, failing to properly follow up on leads can have catastrophic consequences. Gartner reports that the average B2B sale involves six to 10 decision-makers. This means a single conversation with one contact may not be enough to move the needle. Sales teams must be diligent about keeping the conversation going with all stakeholders, ensuring that they build relationships and address concerns at every level.
Moreover, nurtured leads make 47% larger purchases than non-nurtured leads, according to the Annuitas Group. When sales teams fail to follow up properly, not only are they missing out on potential deals, but they are also leaving behind opportunities for bigger, more lucrative sales.
Why sales follow-up fails—and how to fix it
So, why do sales teams consistently drop the ball on follow-up? Several factors contribute:
1. Lack of prioritisation: Salespeople often focus on leads they deem as “hot” or easy to close, neglecting those that might take more time or effort to convert.
2. Poor communication: Misalignment between marketing and sales can lead to confusion over what constitutes a qualified lead. When sales doesn’t trust the leads they receive, they’re less likely to follow up with enthusiasm.
3. Time constraints: Many sales teams are stretched thin, handling too many leads at once and not giving each one the attention it deserves.
4. Fear of rejection: Salespeople may hesitate to follow up multiple times, assuming a lack of response means disinterest. In reality, it often takes persistence to get a prospect to engage.
How to fix it:
1. Define clear metrics: Ensure that marketing and sales agree on what a qualified lead looks like, so there’s no confusion about which leads deserve follow-up.
2. Automate initial touchpoints: Use marketing automation to handle the early stages of follow-up, ensuring that no lead slips through the cracks. Automated emails or notifications can remind salespeople when it’s time to make a call.
3. First-call: In high-value tech sales it’s unlikely they’re ready to place an order, but looking for help or advice. Field the right people capable of building the relationship and trust through a more consultative approach.
4. Track and measure follow-up: Implement CRM tools that track every interaction with a lead, from the first call to the final close. Make sure sales teams are held accountable for hitting follow-up targets.
5. Provide sales enablement resources: Equip the sales team with the tools and content they need to keep the conversation going. This could be whitepapers, case studies, or tailored messaging that speaks directly to the prospect’s pain points.
6. Create a follow-up cadence: Establish a clear process for how often and when sales should follow up. Whether it’s a mix of calls, emails, and social touches, the goal is to stay top-of-mind without being overly aggressive.
7. Consider outsourcing: Make someone else accountable for first-touch interaction – people who’s job it is to provide a service who will understand your products and service.
The real cost of poor follow-up
When sales teams fail to follow up effectively, the entire business suffers. According to Forbes, companies that excel at lead nurturing generate 50% more sales-ready leads at a 33% lower cost per lead. This means that following up on leads doesn’t just lead to more closed deals - it can actually reduce the overall cost of sales.
Sales teams can no longer afford to let leads slip through the cracks. The ROI of your marketing efforts depends not only on generating high-quality leads but also on ensuring those leads are followed up consistently, persistently, and with the right messaging.
Conclusion: Follow-up is the key to unlocking ROI
The harsh reality is that marketing can’t carry the weight of lead generation alone. Without proper follow-up from sales, even the best leads will stagnate and eventually go cold. The responsibility lies with both marketing and sales to ensure that no lead is left behind. The real ROI comes not from generating leads, but from converting them - and that requires a sales process built on timely, persistent, and strategic follow-up.
By addressing the gaps in sales follow-up, businesses can turn missed opportunities into revenue, making the most of every lead that marketing generates. Because, at the end of the day, even the hottest lead is only as good as the follow-up that follows.