Building your lead network is not what you think and might be challenging the status quo. We all know that we need to generate leads and seek to close deals with them, but this is not necessarily what we are referring to in this case.
What is your lead network?
A Lead Network is when you start building relationships with leads, even if they don’t buy on the first round. It is changing your approach from getting the sale to gaining trust and building a relationship. We have discussed this in a previous article, but it is key to explore this further.
Hit and run.
Unfortunately, salespeople sometimes have a hit and run approach to servicing leads. They get the lead, follow up and aim to get the deal as quickly as possible. If that one fails, they’re on to the next potential customer. When the prospect or lead objects to something, they move on to the next lead or disregard the objection and don’t put in the effort to convince the potential customer that they have the solution.
Not having the drive to explore the reasons for not buying often happens when there is an abundance of leads and reflected in an attitude of “You can’t win them all!” The salesperson is not too concerned if they don’t make the sale and only focus on the low hanging fruit. Symptomatic here is also not actively following up quotes. “They will get back to me if they want it!”
To some, the hit and run approach will be acceptable because that is how the law of averages works. The problem is that the closing ratio on this kind of approach is appalling. The acquisition cost when approaching prospecting in this manner is enormous. You have to capitalise on what you get. Each lead and each opportunity, even if it takes some time.
You are allowing yourself only one sales pitch.
When you have a hit and run approach, you are allowing yourself only one shot at landing the business. You are putting considerable pressure on your ability to close the sale. By perceiving your lead as a new relationship to be nurtured into a deal, the emphasis changes. It will allow you time to do an excellent job at understanding the customers need and suggest the most suitable product.
By building your lead network, you will have multiple interactions with the lead. You will be working on a relationship over time, like with our calling cycle methodology. The frequent contact will allow you to have many more opportunities to make a sale over time. By following the calling cycle methodology, you will increase your closing ratio by at least 50% with the same amount of leads.
You are establishing trust.
The different is TRUST! In this all-consuming world people are so used to defending their space from everyone trying to sell them something. A sense of distrust is the first obstacle salespeople need to overcome. In the majority of cases this is not possible on the first contact. Yet salespeople expect to make the sale instantly.
By building your lead network you establish the trust over time, and the transaction will eventually follow. This will result in a loyal customer who will see you as a dependable person to refer other people. Over time you will become the “go-to-person.”
You increase your success ratio with a lead network.
The search for leads must be one of the most challenging activities in sales and the reason why so many salespeople shy away from it—the success ratios of salespeople running between 1% to 3% on the first two interactions. We found that 90% of salespeople quit after the second no. By building your lead network, you will increase your closing ratio by up to 60% on the fifth contact.
Your sales network does not only consist of an active buying customer, but also a group of potential customers with whom you are actively building long-term relationships. Not walking away after the second no, but continuously making contact until the fruit of your labour is realised.
If you want to know more about lead networks and calling cycles, click on the link below to join us for a free coaching session and cheat sheet.