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Sales conversion rates from opportunities to sale are likely to follow the same sequence, with Level 1 having the highest conversion rate and Level 4 the lowest. Management must therefore seek the balancing point where the sales force is most productive, yet the company’s future income is also assured. As you move down the pyramid the question arises “what impact will the more numerous yet less qualified leads have on sales force productivity?”

As a partner to our clients in the front end of the business development process, Sales Support shares that dilemma. For unless the sales force is prepared to positively invest selling time to level 3 opportunities we, as the company responsible for identifying these opportunities, risk losing their cooperation. In our business, the “What have you done for me lately?” syndrome quickly comes to the surface, soon after a few bad selling experiences.

If the lead generation effort is not producing sufficient quantities of highly qualified appointment opportunities from levels 1 and 2, there may be several reasons.

• It might be the markets targeted (industry, size, location).
  
  
• It might be market positioning.
  
• And yes, it might be the ability of the people doing the lead generation.

So what's the best strategy?

The best strategy is finding a happy medium? Somewhere in between. However, the ultimate arbiters are the sales people who will be following up the appointment.

Unfortunately, it may be that some of the sales force is part of the problem. To our constant disbelief, many companies refer the decision of whether or not to continue a lead generation program to the sales force. When they do this here’s what normally happens:

• The sales people who are successfully closing business want the program to continue.
  
• Those not closing enough business tend to blame the quality of the leads for their poor performance.

This suggests that giving the prerogative to the sales force is may not be the best answer. Because a sales person who is not closing business will almost never admit it’s his or her fault, it is invariably, something or someone else. And the finger of failure often times points at the source of the lead or its quality.

This is a situation where management ought not duck its responsibility. If the sales force is not closing fully qualified opportunities (that meet the specified criteria) then surely it must be poor performing salespersons who are the problem, not the leads. Especially when some of the sales force are succeeding and others not. If no sales at all were being recorded (rare!) you would have a sure fire case against the quality of the lead generation effort.

What's to be done?

Well, first, management needs to be fully aware of the problem. Then it needs to make strategic decisions.

1. Determine the optimal level you wish to allow that is economically viable and practical from a sales force productivity     standpoint.

• Level 1 only.
  
• Level 1 and 2.
  
• Level 1, 2 and 3.