Do you send out a lot of quotes, or estimates?
Or maybe your business, like mine, uses proposals to frame projects and fees?
Many of my clients have sizable teams that take phone calls for new estimates all day long. Some companies call this group customer service, and others call it inside sales.
I was recently doing a series of workshops for a client as a part of our year-long revenue growth project together.
This company had about 80 people in customer service.
Each person generated between 20 and 50 quotes a day. About 23% of them close and turn into business.
That means almost 80% evaporate into the wind.
I asked them how many of those are followed up upon?
Answer: almost none.
Can't blame them. They're busy. Their phones are ringing off the hook. They have so many demands for so much reactive work, where would they find time to follow up?
Here's the thing: These quotes are existing customers asking to do more business with you.
If you send them a price and they never hear from you again, the odds are they've given their business to somebody else—who did follow up.
Let's do some math related to the quotes my client's customer service department generates.
Let's say 80 people generate 20 quotes a day (I like to use the most conservative number in these kinds of discussions).
That's 1,600 quotes a day, which is 8,000 quotes per week, which is 6,000 quotes per month.
Which is 400,000 quotes per year.
Twenty percent ...