New Leads + Improved Sales/Marketing Alignment + Better Accountability Understanding – More Revenue for Company
Here’s one scenario where we made an impact in diagnosing a situation – the names have been changed – let me tee up the scenario.
Company Z has a situation that AT LEAST 50% of all leads marked as “open” were ignored by the global sales team. Company Z generated roughly 250 “Marketing Qualified Leads” per month at $110 per lead and 50% are being ignored, which equates to $13,750 per month and $165,000 per year being lost in program investments alone. Said differently – this company wasted at least 25% of its total discretionary marketing budget annually.
Now let’s connect this to revenue – the company typically books $30k/TCV (total contract value) of a converted inquiry to sale. According to SiriusDecisions, the conversion rate from MQL to close is about 10%. So assuming sales could be following up on 50% of the inquiries, they could be gaining on 150 annual inquiries * 30k/TCV/deal = $4.5M in extra contract revenue. This also neglects aspects like lead nurturing (so there is upside to the $4.5M revenue), and the customer experience. So you can see why money was not well invested and the return on investment was suboptimal.
Given this scenario, the impact is poor productivity, lost sales, extended sales cycle and the list goes on. What we did to fix this situation was to bring this to the attention to the sales leader to put the measurements in place to recapture the lost revenue and recoup the lost investment.