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Direct Mail Sales Lead Generation Success Involves Three Numbers
http://extremedirectmarketing.com/articles/11/1/Direct-Mail-Sales-Lead-Generation-Success-Involves-Three-Numbers/Page1.html
Cisco Adler
About Cisco Adler - Are you ready to add extreme response and effectiveness to your direct marketing?

If so, call me. I integrate dynamic offline messaging and design and a trackable online response system to achieve higher response rates and build better customer relationships in less time.

Here's a little about my background:

An accomplished marketing strategist, designer, and photographer, Cisco has over 15 years of experience in developing and creating unique communications solutions.

Recently, he served as Vice President for Marketing and Communications at Belmont Abbey College, just outside of Charlotte, NC. Cisco was responsible for redesigning, redeveloping and repositioning the College’s identity and served as one of seven advisors on the President’s Executive Cabinet.

He has served as Vice President of Marketing for the legendary fitness company, York Barbell, where he was responsible for all product development and design including: product function, aesthetic attributes, retail packaging, and presentation of new products to business customers.

Cisco also designed and patented private label programs, such as a state-of-the-art fitness equipment merchandising system for Dick’s Sporting Goods.

Cisco is also an award-winning, photographer, ranked one of the top three in a seven-state region. He has been contracted by the AP, The New York Times, The Washington Post, and numerous other publications.

Turbocharge your direct marketing response by contacting Cisco at http://ExtremeDirectMarketing.com or by emailing Cisco@AdlerDirect.com or calling 704-248-7622


Shaq and Cisco during a photo shoot at the player's home. Still one of my favorite photos!
 
By Cisco Adler
Published on 04/30/2008
 
You will succeed at business-to-business direct mail sales lead generation if you master three calculations, and your response rate is not one of them. Your response rate tells you only a small part of what you are doing correctly.

You will succeed at business-to-business direct mail sales lead generation if you master three calculations, and your response rate is not one of them. Your response rate tells you only a small part of what you are doing correctly.

I am assuming that you have a sales force, and that you use what is essentially a two-step sales process. First, you generate a sales lead. Then, your sales force closes that lead with a sale. But how do you figure out what level of response rate you want? By looking at three of the most vital numbers in B2B direct mail lead generation, namely, qualified lead rate, appointment rate and close rate.

Qualified lead rate
Your qualified lead rate is the percentage of all inquiries that are ready to meet a sales person. In other words, the percentage of all leads who are also qualified leads. If you have 100 leads but only 25 of them are qualified (can afford your offering, have the authority to buy, need what you are selling and are ready to act within your timeframe), then your qualified lead rate is 25%, the industry average. Good for you!

Appointment rate
Your appointment rate is the percentage of qualified leads that result in a sales appointment or demonstration. For many reasons, not all qualified leads will meet with your salespeople. The industry average is 30%. Thirty percent of all qualified leads should meet with your sales people.

Close rate
Your close rate is the percentage of sales appointments that translate into a sale. Sometimes this number is expressed as a ratio. If you close two out of every four potential customers that you meet, then your close rate is 50%, or two out of four. The average in most industries is 25%, or one out of four.

As you can see, the most important question in B2B direct mail lead generation is not "What is our response rate going to be?" If you have a small sales force and high close rates, you can be satisfied with low response rates. But if you have a large sales force and low close rates, you need higher response rates.

The secret is to remember that your direct mail response rates tell you how successful you are at generating leads, and no more. How good you are at turning those leads into paying customers is another story.

Contact us to learn more about generating more leads and selling more listings.