According to business-to-business sales research conducted by Pointclear, a Georgia-based prospect development company: 79% of leads generated by marketing initiatives are not followed up by sales. Of the remainder, 70% are discarded by sales for other reasons. Only 6.3% of the total lead stream is worked to a viable conclusion.
Yikes! Is that true? In this economy? Yes, apparently so. Speaking from first-hand experience, I admit that my own ‘followup stats’ at Scarlett Consulting are not exceedingly better than those statistics (though thankfully, they are somewhat better).
Two weeks ago, I delivered this presentation to AIA Chicago: ‘Beyond the Magic Bullet: Business Development Strategies to Tackle a Down Economy’. A portion of the presentation spoke about lead development, so I quoted the above-mentioned statistic. And I thought to myself: “Self, how guilty are you of the same thing….neglecting to followup on certain leads?”
Sure enough, in short order, I listed a handful of leads within the last couple of weeks on which I had not yet followed up. These included a business opportunity referral from a fellow professor at Columbia College; an email I received from a reader of one of my published articles; the discovery that a wife of an AEC contact works for a firm that is strategically growing its business here in Chicago; and more. All of these tips could most certainly lead to an architectural, engineering, or construction firm seeking the services of Scarlett Consulting.
Why was I slacking on the followup? My guess: these leads were not overtly direct—as in, a firm stating: “Anne, we need Scarlett Consulting. Please provide us with a fee proposal to help solve our sales and/or communications issues.” Obviously, it’s most fun to followup on direct, no-nonsense, non-tire-kicking leads. But alas, prospect development is far from easy, and its up to AEC firm leaders to take the firm’s leads seriously and initiate (or delegate) followup action.
How do you and your firm ensure that you’re not guilty of dropping 79% of your leads? Feel free to share in private email or as a post.