Why you should NEVER prospect in your CRM!
[Definition] Outbound Lead Generation – the art of consistently contacting people that resemble your ideal client profile.
Don’t make it harder by prospecting in your CRM.
I see a fair amount of sales people and entrepreneurs buy, build or scrape a list of contacts and add that to their CRM and start emailing out of it. Here is why you need to STOP doing this.
Before I begin, I want to clarify some terms here:
Suspects – people or companies that resemble your ideal clients. They have not engaged with you or your company.
Prospects – these are people or companies that have engaged in some way be it signing up for your newsletter, calling your business, responding to emails, etc. but have NOT bought from you.
Clients – people who buy from YOU.
It is important to establish that because the term prospecting – would lead one to believe that these people are “prospects” and should be in your CRM. But in actuality “prospecting” is done to “suspects” – people that resemble your ideal client profile (you do have an ideal client profile, right? ) but may or may not become prospects.
Your CRM (Customer Relationship Manager) should be saved for actual clients and prospects. Not keeping track of who an email has been sent to. What phone calls were made. In essence keep “suspects” OUT OF THE CRM.
Reason #1 – Garbage In – No Matter How Hard You Try!
We typically see on average, 20% of the custom, contact databases built to be immediately out of date. So If you or your sales team enter 1,000 contacts – you will probably have 200 lost. Do this consistently and you have database of junk!
Reason#2 – Responses = GOLD
If someone never responds, then why are they in your CRM?
So lets say you get an average 10% response to your emails or calls. So we take that group and now have some data to possibly add them to the CRM. Good fit. Bad Fit. Working. Etc. So from your original list of 1,000 only 10% respond.
We are left with 70% that are in the database and never did anything for the business. (1,000 – 200 (bad data) – (800 remaining – 10% = 720) see the example below. Your CRM is now filled with 920 Records (200 Bad Data + 720 no response) that are either bad or unresponsive.
Do this every month and the database starts to look like junk! 92% of your database is now garbage.
Reason # 3 – Someone is assigned -every lead
even if they never speak with them. Almost all CRM’s require -or by default assign- a person. If you are putting/entering “suspects” before they respond than someone is getting far too much credit for a contact in your CRM. If your rep leaves then someone has to try an make sense of “suspects” that never responds.
Reason # 4 CRM’s Struggle to Automate Prospects
Almost all CRM’s out of the box don’t do “prospecting” automation very well. So you have to use another tool to still go outbound. So the work (making a list, then importing that list to a tool) is duplicated.
Good outbound automation tools can now manage a list far better for “prospecting” than most CRM’s. Save time and aggregation and leave the CRM at home for this task.
So save yourself time and headache use a toolset (or the latest buzzword: “sales stack”) to do the prospecting, and the CRM to track active deals and Prospects as they RESPOND!
Or better yet, request a demo and have our team manage your outbound and then transition the leads into your CRM. 🙂
Get a copy of our spreadsheet here.
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[Editor: This was originally posted on Linkedin. This post has been update with new information and images. To see the original click here.]