lead to close percentage | No Smoke and Mirrors

How do I Improve My Sales Team’s “Lead to Close Percentage”? 10 steps …

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leads nurtured grow into profitable customers

In my previous post I shared how your lead to close percentage is a canary in your coal mine, an early warning for your future sales performance. Market leaders track and constantly fine tune their lead to close process to drive sales performance increases. In this post I will share 10 steps I have used to improve your lead to close percentage.

Improving your lead to close percentage increases the return on your team’s market dollars invested while adding predictability to the sales forecasting process.

When you ask sales people what they need to grow their sales and hit their sales numbers they often say: more leads. I have found in 95% of the cases this is not true. You do not need more leads you need to improve your sales teams close rate on the leads you already have.

Here’s some stat’s for you to chew on….

50% of leads are qualified but not yet ready to buy ( Hubspot)

57% of B2B companies identify converting qualified leads into paying customers as a top funnel priority (Marketing Sherpa)

65% of Marketers have not established lead nurturing (Marketing Sherpa)

79% of markets have not established lead scoring (Marketing Sherpa)

Companies that excel at lead nurturing generate 50% more sales ready leads at 33% lower cost ( Forester Research)

Nurtured leads make 47% larger purchases than non-nurtured leads ( The Annvitas Group)

Companies that have lead nurturing have 9% more sales reps make quota ( Gartner Research)

Trigger based marketing, event based marketing is 2 to 12 times more effective than old school direct marketing ( Genroe)

How do we serve our customers and help them to buy what they want when they are ready to buy?

Know why customers buy from you and why they don’t
Tear down internal Silo’s between sales and marketing
listening, truly understanding your buyers problems, criteria and buying process
Teach, develop content , drive demand
Create lead nurturing processes
Make it easy to buy from you and stop protecting the fort in your sales process
Create buyer persona’s , speak to their pain
Use trigger based marketing, event based marketing
Make sales a part of the lead nurture process and make sure you understand it is different than the lead generation process
your job is not to “sell” your customers but “serve” them and help them buy

If you do not have a lead nurturing process in place start one today. Keep in mind the best lead nurturing programs touch prospects with relevant insightful content perfectly timed based on their intimate understanding of how buyers buy and the criteria they use. You are building a relationship. You wouldn’t ask someone to marry you on the first date, so why would you expect to close the sale immediately?

The landscape of sales today has changed dramatically compared to how it used to be. Market leading sales and marketing teams work together with cross functional goals. Salespeople spend time on the internet researching their customers and prospects leveraging technology to identify problems they can solve instead of hours of windshield time and logging air miles. Market leading sales and marketing teams have adapted and leverage technology to improve their lead to close percentages. They increase sales and return on sales dollars invested.

“Lead to Close Percentage”, The Canary in Your Coal Mine for Sales Forecasting

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knowing your lead to close percentage is key to improving sales

If you want to get CEO’s talking, one of the hot topics is what I have referred to earlier is the “Great Disconnect” as it relates to sales execution. Some common burning problems that CEO’s often share with me on their drive home at night are about their frustration with regards to sales performance…

Why is sales an art and not a science in their organization given all the technology available today?

How can I get my sales team to operate like my plant?… more manageable, more predictable?

How can I tell quickly and early enough that my salespeople will or won’t hit their sales goals each month?

How can we drive the variability of sales forecasting out of our current sales forecasting process?

How can we get a greater return on marketing dollars invested?

The question I use that often makes the phone call grow quiet with that all too familiar pregnant pause is: What is your team’s “lead to close percentage”? Your lead to close percentage is the canary in your coal mine of sales and acts as an early predictor of future sales performance. When you ask salespeople how to grow their sales they will say; I need more leads. The reality is you do not need more leads you need to improve your lead to close percentage on all the leads you already have.

My grandfather grew up in West Virginia and his father like many men back then was a coal miner in addition to having the family farm. My grandfather used to share with me how miners would bring canaries down into the coal mines as they were a quick early warning sign that there were toxic unhealthy gases seeping into the mine and they needed to leave the mine quickly. Canaries are particularly susceptible to toxic gases like carbon monoxide and methane found in the stale air of mines back then. The life of a canary in a coal mine was often short but meaningful. Your lead to close percentage indicator is the canary in your sales mine.

So what is the “canary in your coal mine of sales”?

Your “lead to close percentage” is one of the best indicators of future sales performance.

57% of companies in a study indicated converting qualified leads into paying customers as their top funnel priority (Marketing Sherpa)

50% of leads qualified but not yet ready to buy (Hubspot)

Do you know your “lead to close percentage” for your sales team? …for each salesperson?

It is difficult to manage, fine tune, and improve something until you make it a Key Performance Indicator that you track. Once you start tracking your lead to close percentage for your team and each salesperson you will quickly be on a path to taking the frustrating variability out of your sales forecasting process.

In my next post I will share specific ways to improve your lead to close % one you have agreed to make it a key performance indicator your sales team will track and report on.