Danny Creed, a Focal point Coach recently had some dramatic statistics on sales calls and follow-ups in his newsletter. As an entrepreneur in the food industry, it can be challenging to keep your morale up and to take some of the rejection that comes with the territory. As is so often said, “No really means Don’t Know.” If you look at Danny’s statistics it would appear that many of us out there selling haven’t even followed up!
LEAD FOLLOW-UP
- 48% of salespeople never follow up with a prospect (This one is the most baffling)
- 25% of all salespeople make a single contact and then stop.
- 12% of all salespeople only make three contacts and then…stop.
- Only 10% of all salespeople make more than three contacts.
SALES COMPLETED
- 2% of all sales are made on the first contact.
- 3% of all sales are made on the second contact.
- 5% of all sales are made on the third contact.
- 10% of all sales are made on the fourth contact.
- 80% of all sales are made on the fifth to twelfth contact.
Effective follow-up is crucial in sales, and numerous statistics highlight its importance. Here are some sales statistics that support the need to chase up leads:
The Rule of 7:
According to the “Rule of 7,” prospects may need up to seven touchpoints before making a purchase decision. This emphasizes the importance of consistent pursuit to stay at the top of one’s mind.
Response Rates:
The odds of connecting with a lead decrease significantly if the first follow-up is delayed. Research indicates that responding to a lead within the first hour increases the likelihood of conversion by seven times compared to waiting two hours.
Persistency Pays Off:
A study by the National Sales Executive Association found that 48% of salespeople never follow up with a prospect, and 25% make a second contact, and then stop. However, 80% of sales require five follow-up calls after the meeting.
Conversion Rates:
Research suggests that 80% of sales are made on the fifth to twelfth contact. This underscores the importance of persistent pursuit in converting leads into customers.
Email Follow-Up:
Data shows that sending multiple follow-up emails can significantly increase response rates. For example, the first email might get a 30% response rate, the second 25%, and the third 13%. This highlights the cumulative effect of follow-up efforts.
Lost Opportunities:
A significant percentage of sales opportunities are lost due to a lack of pursuit. Research indicates that approximately 44% of salespeople give up after one follow-up, and 80% give up after the third. However, 8% of sales occur after the fifth contact.
Customer Retention:
Follow-up is not only crucial for acquiring new customers but also for retaining existing ones. Studies suggest that increasing customer retention rates by just 5% can boost profits by 25% to 95%.
Building Trust:
Follow-up is an essential element in building trust with potential customers. Trust is a key factor in the decision-making process, and consistent follow-up helps establish a relationship with prospects.
Competitive Edge:
Following up with leads and clients can provide a competitive edge. Many businesses neglect this crucial step, so a commitment to thorough follow-up can set a salesperson or company apart from competitors.
Customer Feedback:
Regular follow-up allows for gathering valuable customer feedback. Understanding customer needs and concerns through follow-up interactions enables salespeople to tailor their approach and offerings accordingly.
In summary, these statistics emphasize that follow-up is not just a recommended practice but a critical component of successful sales strategies. It helps build relationships, increases conversion rates, and contributes to long-term customer satisfaction and loyalty.
Need help or support with your selling process reach out to Food Biz Mentoring!