Q: My problem is
not generating leads, but converting those prospects into
customers. It seems we're getting lots of people in, but only a
small percentage become clients. Can you help me figure out
what's standing in the way of sales?
A: A low conversion
rate—from leads to sales—is a common sales and
marketing problem many businesses face. First, I suggest reviewing
and fine-tuning your media selection. An advertising or direct-mail
campaign that targets too wide an audience may yield a lot of
unqualified prospects—tire kickers who are interested but who
are not qualified to become customers because of price or other
requirements.
What characteristics must your best prospects possess? Write
down a brief description of your target audience, then reexamine
the readership of the publications in which you advertise, the
broadcast audience makeup and the list criteria you use when buying
direct mail to be certain you're reaching your best
prospects.
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Next, examine your marketing materials, including brochures and
sell sheets, to be sure they don't make inflated claims that
your product or service can't deliver. In that instance,
prospects may respond to your materials but feel let down when they
find your claims are unrealistic. On the other hand, your marketing
materials may accurately present the benefits your product or
service offers, but your sales staff may fail to present them
properly. In both cases, these errors can pose significant sales
barriers.
A sales process that's too lengthy or that puts the
responsibility on the prospect to act can also cost you sales. How
many steps must your prospects take from the time they respond to
your media until they finally become clients? Put yourself in their
shoes, and walk through your sales process. Then eliminate as many
steps as possible, especially those that require prospects to take
action on their own, such as by calling you or returning to the
store if you're in retail.
Many sales are also lost because entrepreneurs and their staffs
simply fail to ask for the business. So train your staff in
consultative selling—that's uncovering and filling needs
in a friendly, noncombative and supportive way—to help
improve your conversion rates.
Originally published in the September 2001 issue of Entrepreneurs Start-Ups magazine