Manufacturing Sales Strategy … 1 Thing You Should Be Doing to Double Your Sales
My grandfather worked in construction most of his life. One of the most meaningful things he taught me was that it was almost always better to work smarter instead of harder. I’ve always tried to find ways to apply this in my work life and how I approach marketing. One place I’ve found this advice the most helpful is when I apply it for our manufacturing clients who are trying to improve their sales strategy.
If your sales staff spends all day (or almost all day) on sales calls trying to close deals for new manufacturing clients, there is likely one big thing that is holding you back. A big percentage of the “leads” that are on the phone aren’t really leads at all. They are people who are the “tire kickers” or price shoppers. From all of the manufacturers we’ve worked with, we have found that typically over 50% of the calls that manufacturing sales staff spend time with aren’t serious potential customers. That is discouraging when you think about how much more efficiently that time could be used.
But what can you do about it? How can you know that clients are serious? We have found that the one big thing that makes a massive difference in lead quality is pre-qualifying leads. By the time a potential customer actually gets on the phone with our clients, they have already answered qualifying questions or received information that makes it clear how our clients work with them … or both.
Of course, this strategy can sometimes increase the cost of leads. But when we break it down, we see that the increased cost typically means an increase in ROI … sometimes more than a 500% increase. Here’s how that math breaks down.
Example Client –>
Cost Per Lead: $45
% of “Qualified” Leads: 20%
Close Rate on “Qualified” Leads: 20%
Cost Per New Customer: $1125
Cost Per Lead: $75
% of “Qualified” Leads: 60% (yes some unqualified leads still get through)
Close Rate on “Qualified” Leads: 30%
Cost Per New Customer: $416.67
So you can see that even though a lead might cost significantly more when really qualifying leads with a system, the results when it comes to the cost of acquiring a new customer are staggeringly better. The bottom line is that it is easy to spend time on the phone. If you aren’t spending that time with quality prospects, it’s not getting you as far as it should be. If you aren’t already doing it, implementing an automatic process of qualifying leads within your manufacturing sales strategy should be one of your top priorities.
I’m sure that, as a manufacturer, you are always on the lookout for ways to work smarter when it comes to delivering for your customers. This is one way for your sales staff to work smarter.
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