Convert More Leads to Closed Deals by Nancy Nardin

SPECIAL REPORT

Convert More Leads Into Closed-Deals

A Frame-Work for Success Smart Selling Tools

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Convert More Leads into Closed Deals: A Framework for Success

According to CSO Insights 2011 Sales Management Benchmark Report, less than 50% of forecasted deals result in a win. All that effort, expensive selling time, and marketing dollars spent to move 47.3% of your leads through the pipeline are wasted. Clearly there is a problem. What would happen if you ran a manufacturing plant and your actual production compared to production forecast - was a mere 47.3%! You would recognize a serious problem. You would question whether something was wrong with raw materials, with employee skill-set, or with the equipment. You would want to get to the bottom of it because no company can survive if they continue to produce only 47.3% of expected production. You would want to get to the bottom of it because no company can survive if they continue to produce only 47.3% of expected production.

We should consider it equally troublesome in the world of sales. Instead, we tolerate it as long as quota is achieved. If we can’t have both - accurate forecasts and quota – we’ll settle for quota and call it a day. Inflated forecasts are often considered part of the game. We simply can’t predict what will happen in the future so we play the “number’s game” and the rules are this: make sure to have double the deals in the forecast than you’ll need. That way, when 50% don’t materialize, you’ll still meet plan. That strategy requires filling the funnel with more leads i.e. stuff more leads into the top of the funnel then you can make it up in volume. For that to work, you have to assume the additional leads would convert to opportunities. That’s a risky bet because the same study found that the conversion of leads-intoopportunities has fallen for the past 3 years in a row. By adding more leads, you may do more harm than good as increasing the quantity of leads could divert reps’ limited selling capacity from high-quality leads to lower quality leads.

Pouring more leads into the top of the funnel only leaves less time to convert opportunities into closed deals.

Reps have a finite time to sell. They juggle hundreds of follow-up activities required to convert leads into opportunities, opportunities into forecasted deals and forecasted deals into revenue. Pouring more leads into the top of the funnel only leaves less time to convert opportunities into closed deals. Moving more leads through a clogged pipeline does not apparently, guarantee a high win percentage. The solution The way to increase lead-to-deal conversion rates is to remove clogs in the system. The system itself has to perform better. And by “better” I mean you’ll need a more efficient and more effective pipeline follow-up process. An inefficient pipeline is the result of a combination of inefficient and ineffective follow-up. Reps simply need to execute on their activities better. They’ll need to do more of the right things and do them at the right time with proper preparation.

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Convert More Leads into Closed Deals: A Framework for Success

CRM isn’t enough All reps who want to convert more leads into closed deals start their day the same way. They ask themselves two questions: That’s because high performing reps seek to prioritize activities and execute on those activities effectively.

“What should I do today ?” (how should I spend my time)

“what do I need in order to do it?” (how should I do it)

Regardless of the size of their territory, regardless of whether a rep is inside or in-the-field, regardless of whether the rep is new or tenured, those are the two questions he or she must ask. That’s because high performing reps seek to prioritize activities and execute on those activities effectively. If they prioritize correctly but execute poorly or they execute well but prioritize poorly, they will get less than optimal results (think 47.3 % deals forecasted). CRM systems alone can't adequately help reps prioritize and execute. They’re good at storing discreet bits of data like a scheduled phone call or a note from the last phone call. But they don’t do as well when it comes to managing the entire pipeline follow-up process. And pipeline follow-up is nothing if it’s not a process. Prioritizing and executing on tasks is how reps qualify and convert Leads into opportunities and move forecasted opportunities to a close. This is what we refer to as pipeline follow-up optimization.

So there’s the conundrum. CRM, the core system used to manage daily pipeline follow-up isn’t designed well for the task. For instance, you can see all opportunities, all tasks, or all leads as discreet entities but it’s cumbersome to connect the dots. It takes too much time and effort. It is not efficient. This could be a major factor in the low adoption rates of CRM among salespeople. CRM just doesn’t do enough to help reps prioritize tasks and execute effectively. And prioritizing and executing on tasks is how reps qualify and convert Leads into opportunities and move forecasted opportunities to a close. This is what we refer to as pipeline follow-up optimization. With CRM, reps can record activities and they can look up a contact and they can enter an opportunity and forecast it. But again, those are discreet activities. When data is presented as discreet entities across multiple screens it’s like giving hikers a list of trails, mountains, destinations, and rivers, but each represented on its own map. Until the hikers can merge the maps together, they can’t execute well enough to get to their destination efficiently. And as a manager, you can’t help much because you don’t have the data you need. About all you can do is ask your ‘hikers’, “Where are you now?” and "What is your plan to move forward?" In sales management, you need to know the current status of deals to ensure that you’ll meet your revenue commitments. But it would be much better if you knew more. It would be better to know how they got there, how long it took and whether there were any obstacles. Only then can you pro-actively manage and ensure your reps complete their journey successfully (i.e. exceed quota). To ensure your sales reps reach their destination

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Convert More Leads into Closed Deals: A Framework for Success

Framework for success Now that we’ve talked about the importance of pipeline follow-up optimization to converting more leads into closed deals, let’s talk about how to make it happen. Because of its complexity, it can be paralyzing to think about the process and where to start. In this section, we provide a frame-work to help you get the job done. Using the planning guide on the following pages, you’ll: Ÿ Identify your priorities Ÿ Measure your organizations current ability to execute against those priorities Ÿ Determine an action plan (what needs to be done now, next, and later) There are three sections that together, outline the capabilities required for converting more leads into closed deals. Section one contains capabilities that enable your organization to be more efficient. The second section lists capabilities required to increase effectiveness. And the third section outlines the capabilities essential for working smarter. Step One: Identify your priorities Review each section of the planning guide and put a ‘Y’ in the first column for each item that is a priority and an ‘N’ for each item that is not a priority. Step Two: Measure your current ability to execute against your priorities Again, reviewing each section of the planning guide, look for each item with a ‘Y’ in column one and ignore those with an ‘N’. If you already have the capability in place - congratulations. Put a ‘Y’ in column two. If you don’t, put an ‘N’ in column two.

Those with a yellow or red icon are best accomplished with 3rd party plugins. That is, software that runs on top of Salesforce and has the specific capabilities already built-in.

Step Three: Determine your action plan As with any action plan, it’s tempting to start with your highest priority objectives. But that can back-fire if the level of difficulty is too high. We recommend starting with the highest priority objectives that are the easiest to implement. The symbols in the 3rd column indicate the degree of difficulty for accomplishing each objective. You’ll see from the index, that those with a green icon are the ones that can be done in Salesforce without much customization or programming effort. Those with the yellow icon will require a fair amount of effort and resources. Those with a red icon are the highest degree of difficulty, and require the most effort. In many cases, those with a yellow or red icon are best accomplished with 3rd party plugins. That is, software that runs on top of Salesforce and has the specific capabilities already built-in.

Col 1

Col 2

Col 3

Ordered Priorities

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Planning Guide: TM

for More Efficient, Effective and Smarter Selling Using Salesforce.com

Capabilities Needed to Increase Efficiency Reps can readily access a list of 'unread' leads (leads which they have not yet opened) to aide them in their prospecting efforts. Reps can see an auto-generated list of follow-up calls that need to be made each day â&#x20AC;&#x201C; and can easily move through the list with adequate prep and minimum effort. A list of calls is created automatically so reps will know which contacts need a 2nd, 3rd, or subsequent attempt. Reps can quickly send an email follow-up, log the email, and tee-up the next activity Key data points will be listed for each contact on the call list such as; lead source, time zone, last contact date, questions asked and answered to-date. In preparation for the call, reps can view a timeline of all past activity in one snapshot without clicking through to multiple screens In preparation for the call, reps can view notes, and relevant history without clicking through to multiple screens The Lead list is priorortized to ensure that the most valuable Leads are contacted first. Sales Reps have data on the most productive times of the day to plan, call, and do administrative tasks Reps have one-click access to reference material which may be needed on a call A multi-touch campaign for each marketing program is determined so reps don't have to manually create tasks Reps have access to call prompts or reminders to reduce the time needed to prepare. Reps can collaborate with each other and with colleagues, view updates and post documents. Email and calendaring can be done in Outlook or Salesforce and still stay synched. Configuring quotations and creating proposal is straightforward There is an approval process built-in to the system for quote and proposal review and authorization Salesforce can be easily accessed and updated by mobile users even when off-line they are off-line. Reps can package various materials, such as presentations and product backgrounders and send a URL to the customer or prospect for access.

Desired? Yes/No

In place? Yes/No

Degree of Difficulty

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Planning Guide: for More Efficient, Effective and Smarter Selling TM

Using Salesforce.com

Capabilities Needed to Increase Effectiveness Our reps know which leads have not yet been opened so they can conduct timely follow-up. Reps know how, and can execute a best-practice, multi-touch campaign (e.g. first I call and leave no message, then I call again. If no answer, I leave a voicemail. Then I send an email referencing the voicemail. Then 3 days later, I attempt another call â&#x20AC;Ś). As needed, reps can open call prompts containing scripts or persona-based questions to ask allowing them to have credible and relevant conversations. Related support material is available if the rep needs information on the call (e.g. competitive cheatsheets or product spec sheets). Reps can research the past activities of a Lead or a Contact's co-workers prior to making a call to be sure they are fully aware of relevant account history. Reps make use of Social Media (LinkedIn, Facebook) in preparation for making a call.

Sales Reps have campaign-tailored sales materials they can send to reinforce the message. Reps know, statistically, the average number of attempts needed before there is a diminishing return on their effort (they know when to give up). Reps can determine which opportunities have not been contacted for a specific length of time so they don't risk dropping the ball. Reps have access to best-practice emails for all stages of the pipeline. Reps can access a list of questions they should ask prospects based on their job titles, industry, or other persona-based criteria. Reps know best-practice questions for identifying Budget, Authority, Need, and Timing (BANT). Reps have easy, quick, access to information sources such as Hoover's and LinkedIn to conduct pre-call research. Reps know which questions they've already asked, and just as importantly, which have not yet been asked, so they can use their time with the prospect wisely. Reps are able to access a list of the most frequent objections and the best-practices for handling them. Reps are able to tap into social media resources such as LinkedIn, Twitter, and Facebook to improve their access to prospects.

Desired? Yes/No

In place? Yes/No

Degree of Difficulty

Smart Selling Tools

Planning Guide: TM

for More Efficient, Effective and Smarter Selling Using Salesforce.com Desired? Yes/No

Capabilities Needed to Work Smarter Reps know how many phone calls on average it takes to reach a prospect. Managers know how many interactions it takes on average to convert a lead to an opportunity. Managers know the average conversion rate of leads-to-opportunities.

Managers know the average amount of time it takes to respond to a new lead.

Managers know how old leads are and can get lead aging reports.

Managers know how many leads convert to conversations.

Managers know how many conversations convert to meetings. Managers know how many meetings it takes to convert the prospect to an opportunity. Managers know the percentage of meetings that convert to opportunities. Managers have a best-practice system that helps new reps ramp up quickly. Managers know which personas tend to buy quicker. Managers know which conversation starters convert to more meetings.

Reps know which buyer issues are important to different buyer-personas. Reps can check a Lead record for duplicates prior to making a call. We have a Service Level Agreement between Marketing and Sales. Marketing knows what sales expects and sales has agreed to follow-up accordingly.

In place? Yes/No

Degree of Difficulty

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Convert More Leads into Closed Deals: A Framework for Success

In summary The problem: On average, the ratio of won-to-forecasted deals is an anemic 47.3%. If that statistic isn’t frightening enough, the lead-to-deal conversion rate has fallen for three years in a row. The problem isn’t likely the number of leads, but rather the ability to move those leads through the pipeline effectively and efficiently. The recommended solution: We talked about the need for a better way to execute on the pipeline follow-up process and that while CRM systems are great for storing a repository of data, they fall short when it comes to facilitating processes. You can and should, leverage your investment in Salesforce.com and its data infrastructure by adding key functionality required to increase efficiency, improve effectiveness, and work smarter. The recommended frame-work: We put forth our recommended frame-work for success. Using the checklist of questions, you can identify the gaps. Closing the gaps will give you the capabilities and the insight you need to affect change and ultimately, improve your sales results.

Convert more leads into closed deals The easy “solution” is to load the funnel up with more leads. But more leads doesn’t equate to better leads. Instead of solving the problem, it can make it worse. The frame-work we’ve presented enables you to identify the capabilities needed to optimize your pipeline follow-up. And it shows you which capabilities to start with based on the degree of difficulty and whether you may need to add additional resources. You can progress from where you are today, to an optimized pipeline follow-up with a systematic approach. Then you’ll convert more leads to closed deals and lead your team and your company into a record-breaking 2012.

This report was sponsored by Shadetree Technology. Incite2 from Shadetree Technology is a pipeline follow-up optimization machine that runs on top of Salesforce. To learn how Incite2 can help you convert more leads into closed deals: Call: (888) 443-1114 Email: support@shadetreetechnology.com See a demo For more information on this topic, or other sales and marketing productivity software tools go to www.smartsellingtools.com