I talked about this topic a few weeks ago in my car buying stories but feel the need to bring it up again. It is one of the most neglected marketing principles and it is going on in almost all businesses. It is probably happening in yours. It is something that once it is fixed or a system for it put in place, can lead to instant cash flow. Who couldn’t use that right now?
I’m talking about follow up. Are you consistently and effectively following up with all your prospects? What about your customers? What would happen if you did?
Here are some stats I have used when speaking to groups that may be of interest to you. If anything, it should give you reason to have a follow up system in place. This is from National Sales & Marketing Executives Association.
Most sales DO NOT close on the first contact—
Only 2% do
3% close on the 2nd contact
4% close on the 3rd contact
10% close on the 4th contact
81% close on or after the 5th contact!
If you are not making at least five follow up calls, you are leaving loads of money on the table! Follow up then is critical to closing more deals, right?
I have stats like this for marketing campaigns as well that are similar. In one study, only 41% of sales were made between the first and the sixth marketing sequence (emailing, faxing, direct mailing, telemarketing) and a whopping 59% of the sales were made between the seventh and ninth marketing sequence.
This should make you want to check on your sales people to see how they are following up and if necessary get a follow up system in place right away. But according to a study from Dartnell Corporation, here is what really happens in businesses:
48% quit following up after the 1st call
24% quit after the 2nd
12% quit after the 3rd
6% quit after the 4th
10% quit after the 5th
With most sales made after the fifth contact and the majority quitting before the fifth contact, who is getting all that business?? Those die hard follow uppers that’s who, the lowly 10% who carry on.
Follow up breaks down because it is time consuming and takes effort. Hot new leads take priority over a prospect who’s interest is questionable or not so hot.