[Case Study] The Huge Impact of Poor Follow Up
A couple of months ago I spoke to a room full of 120 trade businesses at their national conference.
The presentation amongst the other 6 changes you can make in your business to increase sales and profits, was about the importance of follow up after someone has been seen, has been given a fee outline (or a quote) but has not purchased.
We did an exercise I often do with audiences around their system for follow up,
but even I would never have predicted what happened next….
Here’s what happened…
“please raise your hand if after someone enquires with you and you provide them with a measure and written quotation but doesn’t not buy immediately, you call them to follow up”
30 hands out of a room full of 120 businesses raised their hand.
I nearly fell over…
Then I asked…
“raise your hand if you would contact your potential client more than once to see if they would still like to go ahead with your measure and quote?”
No hands went up.
I stood there…dumbfounded.
So how much money was being left in the room?
Ok So let’s do some maths on this..
Let’s work on a conservative per transaction size of $5000 across this group of tradies
Now let’s do this over 10 transactions per business represented, per month
Lets say that 1 in 10 convert on the spot (so no follow up required) which in my experience would be pretty accurate
Now lets work on a 1 in 4 conversion rate (or 25%) average conversion (which is a conservative average benchmark for a trades type business)
And let’s say everyone of the businesses in the room does 10 quotes per month (which is 1200 quotes across the room)
1200 quotes at 10% conversion and $5000 per transaction you get 120 quotes x $5000 = $600,000 in gross sales that sign up on the spot
Now if we just do basic follow up with the same 1200 quotes, we can add another 15% and guess what you get?
another $900,000 per month
and you know what that is per year?
10.8 million dollars !!!
Yep – and that is on a very conservative increased conversion rate based on a very basic follow up process (in this case just the act of ringing up more times)
Nearly a million bucks per month and over 10 million per year !!
Want to know how to follow up without people wanting to take out a Violence Restraining Order on you?
Yeah I thought you might 🙂
Go here to get my proven step by step follow up blueprint – you can thank me later