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[CASE STUDY] – An alternative to more leads

Case Study By: Dennis Keay

When I ask business owners what they need right now, they often answer, “more leads”. But when we start analysing their sales flow, we regularly find they have more than enough leads to keep their sales pipeline / order book full. It’s not more leads that they need…it’s more sales CONVERSIONS of the RIGHT TYPES OF JOBS for their business.

Seems logical, straight forward and easy to say, but what’s missing? That’s what we’re going to cover here.

Case Study: 

When we started working with one particular client they were looking for more leads. We analysed several aspects of their business. The Sales Process was one of them, Marketing was another.

Their Sales Conversion rate was around 5%, winning 1 in every 20 jobs quoted. They had more than 100 quotes sitting in limbo…emailed out to prospects but unsure if the jobs were lost, delayed, or what! They complained that they didn’t have time to follow them up because they were too busy, amongst other things, quoting new jobs.

What made things worse was that their costings for the quotes were often ‘rule of thumb’ using fudge factors someone had devised in the past that allowed them to create the quote faster.

Sometimes they were under-quoting and winning jobs they should have said No to, or should have at least quoted at a higher price on. No point quoting if you’re going to lose money before you start!

They figured that if they acquired twice as many leads they’d do twice as many quotes and win twice as many jobs. Sounds logical…but it also means they need to do twice as much quoting, spend twice as much time and labour in the Sales process, and create twice as much confusion.  Unfortunately, we’ve found that this approach is remarkably common across a range of industries.

What they really needed was a better Marketing Process to ensure they got fewer but better quality leads, and a better Sales Process to increase their sales conversion rate. They also needed a better Quoting Process to ensure their costs were accurately known and covered, with a solid margin, before submitting a quote. These things would give them a better Win Probability and increased profits.

Think about it: A better upfront qualifying process means less time wasted quoting jobs that are never going to convert because, for example, the prospect:

  • Isn’t ready to buy (i.e. they’re just window shopping)
  • Is simply Price Shopping or wants a Rolls Royce product on a shoe-string budget
  • In the end isn’t willing to comply with your Terms and Conditions (e.g. unwilling to pay a reasonable deposit)
  • Isn’t really a good fit for your business or match for your capabilities, but you’ll consider almost any job because you desperately want to win jobs.

This means fewer quotes have to be done in the first place and provides more time to spend on getting each quote right and to follow-up. It also means more time to build up a relationship with your prospective customer and ensuring you’ve properly understood their needs and wants.

If you think about it, if out of every 20 quotes that are sent out, if you’re only winning 1, all you need to do is win another 1 from the 19 others and Bam!, you’ve just doubled your win rate, without having to find another 20 leads and do another 20 quotes.

Because this is such an important concept for the success of small to medium sized businesses, we’ve developed specific Lean Sales and Marketing training to help SME’s.

Feel free to reach out via if you’d like to find out how this training may help your business win more of the profitable work you’d like to be doing.

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