In the previous blog we discussed the dissatisfaction about conversion time; the length of time from making a first contact to signing an offer. Many respondents indicate that this is emotionally three times longer than 5 years ago. This means that the “sales tunnel”, the imaginary funnel with potential customers, must be three times larger than 5 years ago for the same turnover. In many cases this is too expensive to organize with the current sales capacity because then three times as many customer contacts have to be made.
Measuring is knowing
This conclusion means that organizations must increase their sales capacity or work more efficiently and / or more effectively. Part of our own pitch is that with the approach of The Blue Hour we make the sales and marketing teams more efficient and effective, but you may already be familiar with it. To substantiate this statement, we ask our customers after every appointment with a prospect, to value the appointment through a number of questions. This provides surprising information regarding the sales tunnel.
In the meantime, more than 700 appointments have been valued. Our customers indicate that the chance of doing business with a prospect via The Blue Hour is 46.7%. Although we are naturally proud of that, we naturally leave the assessment of whether this is better than your own performance to you.
The valuations provide even more insights. As a matter of fact the percentage was approximately the same in 2015 and 2016 (1.3% difference). This is remarkable in view of the fact that we are receiving more and more reports that the economy has improved in 2016. An increase in this percentage would therefore be logical. The number of follow-up appointments (a good indication of interest) in 2015 was 30.3% or; 1 in 3 agreements based on the benchmark study immediately results in a follow-up interview. In 2016, a follow-up appointment is scheduled in 30.9% of the cases.
What stands out? In 2015 our customers indicated that 25.4% are included in the “nurture program”, in 2016 this percentage is much higher: 45.5% of the appointments will eventually get in the “nurture program”. This means that the sales performance compared to 2015 on the basis of our agreements remains the same, but much more attention is paid to nurturing contacts. Would this mean that organizations are actively increasing their funnel and therefore also the conversion? Reason for further investigation.
Opportunity for new customer
Your own benchmark report
his blog is based on the results of our ongoing benchmark study that we conduct among our relationships.
Want to receive the full report and compare your own performance with the group? Participate in our ongoing benchmark research and we will send the full report.