There is no such thing as a 100% close rate.
Now that we have that out of the way, let’s dig a little deeper. Whether your close rate is 10-20 or 30%, most of your prospects are not purchasing your product. . .today. We’ve worked with companies over the years and have found that even the most standard sales metrics are missing that critical component: time-frame. It’s not unusual for us to hear numbers like 100-10-3-1 to describe a marketing and sales cycle. 100 suspects approached, leads to 10 prospective clients, which leads to 3 proposals, which leads to 1 sale. What we’ve found is that, over time, the actual numbers look more like 100-20-6-4. For every 100 suspects marketed to, over time 20 will become prospective clients, 6 will need proposals, and over time 4 will become clients.
What happens between those two numbers? Your constant outreach is what happens. It takes time for the right person to get your message at the right time. With database marketing, we’re not worrying about the initial close rate, or even the initial proposal rate. What we’re focused on is learning from the sales and marketing effort to the 100 initial suspects. Your best future source of business is going to come from people familiar with your company and offerings. Do you ever hear a prospect say, “I was just thinking about this,” when you call? If you’re outreach is consistent over time and if your database marketing game is strong, you will.
LeadGen Compass can help with this. From profiling your current customers to find look-a-likes in our databases, to appending marketing information to your pipeline, to building business intelligence interfaces for your marketing team, we’re focused on database marketing.