Most sales and marketing processes work like this: the marketing department generates sales leads that are passed to a sales person; the sales person does an initial qualification, probably discarding half of them; during the sales process, further qualification may happen, either by the prospect or the sales person, and finally about one qualified lead in four gets converted into a sale.
These numbers may change depending on the business but on average, I would assume around ten leads from marketing are needed for one sale.
So what happens to the leads that have been discarded? At worst, they may have been deleted from the marketing database and now aren’t on any system at all. At best, they will remain in the marketing database but not flagged as being special.
And why should they be special? Surely they are have been qualified out or lost? In fact, failed sales could be your most valuable future leads. They are the potential rebounders — hot leads that could be easy wins if they come back.
In our business, we get a steady stream of leads — people looking at our offering. Some get qualified out early because they don’t have the budget, or don’t want our delivery model. Later on they might be lost because they have specialised requirements or simply prefer another vendor and go with them.
Six months later, however, some come back. They have decided that they now have the budget, or maybe our delivery model wasn’t so bad, or they looked for a specialised system and gave up, or the competitor they initially chose disappointed them.
Converting “fails” into customers
Even though the initial attempt at converting these leads failed, compared to the rest of the marketing database they are statistically more likely to convert than the others that we know nothing about.
Actually, these “failed” leads had decided they wanted a system like ours and had some idea of what their requirements and budget were. They fell at the last hurdle, but at least they started the race. So whatever tripped them up the first time, they might get over if they started the race again.
So, don’t throw away so-called failed sales leads. Keep them in the database and segment them into a special campaign. This may require a CRM system that integrates the sales and marketing processes together, so prospects can be moved back and forth between marketing and sales with their history intact.
However it is managed, businesses need to get those failed leads back out of the bin.
John Paterson is CEO of Really Simple Systems.