Do you Step up your Efforts with the help of your CRM system?
Do you step up your efforts with the help of your CRM system?
Do you step up your efforts with the help of your CRM system? What would you prefer bottom line? – to be minus US$ 20.000 or plus US$ 500.000? This is of course a rhetorical question.
However, we just worked with a company that pays huge amounts to telemarketing companies every year on acquiring leads for their salespeople who average 666 meetings/year.
Has it paid off? No it hasn’t. What’s more, the effect hasn’t been measured. So no one really knows the results of this effort.
We have now agreed with the company that, as a starting point, they need to decide exactly which companies they want to have as customers. The telemarketing company that calls on their behalf is actually so effective that they get meetings with most of the companies they call.
As a result, the salespeople are exhausted running/driving around in order to keep these appointments. Yet it does not lead to many orders, and there could be a variety of underlying reasons for this. For example:
- When the salespeople appear, the prospect has forgotten the actual reason for the meeting. Yes, they have a meeting in their calendar, but it’s a bit unclear what it is about – and that makes it an uphill battle for the salesperson.
- The salesperson doesn’t get to the bottom of what this customer really needs.
- The salesperson has brought along a presentation that doesn’t address what the prospect sees as their needs – but the presentation is used anyway.
- The salesperson sends an offer that isn’t attractive for the prospect – either due to a poor formulation or because the price is off.
- The salesperson does not dare to ask for an order.
- The salesperson does not follow up on the meeting
The current turnover is US$ 285.714. Based on an average order size of US$ 2.857 and a quantity of 100 orders. There are 350 offers made, and 1116 meetings are held by two salespeople. In addition, the telemarketing company sets up 600 one-time meetings. The result is a deficit of US$ 174.285 – prior to ever even covering one cent towards fixed costs.
NEW ALTERNATIVE 1 – 50% bigger Orders.
The only difference with this alternative is that the order size has now been increased from US$ 2.857 to US$ 4.285 per order. The effect, however, is that the deficit has been reduced to US$ 31.428.
NEW ALTERNATIVE 2A – Better Segmentation – fewer “Meeting 2”
In this alternative, the company has done a better job at segmentation. As a result, the companies that the telemarketing company contacted were much more interested in the sales pitch. Although the same number of prospects received phone calls, there were only 100 second meetings (as opposed to 450 previously, which means the two salespeople now only have a combined total of 766 meetings). What’s more, 200 orders have been placed precisely because the right potential customers were identified. Each order averages US$ 2.857 which results in a bottom line of US$ 111.428.
NEW ALTERNATIVE 2B. – Better Segmentation – fewer “Meeting2” – 50% bigger Orders.
Just as in alternative 2A, in this scenario the company did a better job at segmenting. In this case, however, the salespeople were so effective that they managed to hit an average of US$ 4.285 per order, which results in a bottom line of US$ 397.14.
The fact is that in a company that uses SkyViewCRM, it’s possible to simulate scenarios like these. In this way, everyone can continuously improve because both management and the sales team can see exactly where they need to step up efforts in order to reduce the amount of work and redundant efforts. And they can avoid a lot of talk about what has been said and what has been written, and instead, just press a button to get a good overview based on facts.
Would you like us to call you to discuss more about this? Please, send a mail to Soeren Rasmussen – sra@SkyViewCRM.com – He will be delighted to talk to you, or go to our home page www.skyviewcrm.com