Do Distributors Follow Up on Leads? Most Manufacturers Don’t Know, LeadMethod Survey Reports

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Communication gaps between manufacturers and distributors lead to lost revenue opportunities

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For manufacturers, improving communication with distributors and maximizing leads is the fastest way to give their revenue a boost.

Most manufacturers that sell through distribution channels have no idea what happens to the sales leads they provide their distributors.

According to a new survey, conducted by LeadMethod, a distributor relationship management software company, about half of manufacturers have no idea if their distributors and/or independent sales reps even follow up with the sales the manufacturers send them.

“Manufacturers invest marketing dollars in lead generation to support their distributors and independent reps, but in many cases that money is just wasted,” said Justin Johnson, CEO of LeadMethod. “Even more concerning are lost revenue opportunities and missed business that all those lost leads represent.”

LeadMethod surveyed 2,500 sales and marketing professionals in the manufacturing sector, all of which sell their products through distribution channels.The survey results reveal distinct gaps in communication between manufacturers and their distribution partners, specifically when it comes to lead sharing, lead follow up and overall sales feedback.

Key findings from the survey include:

  • 50% of companies that have more than 50 distributors or independent reps do not know if their leads are being contacted.
  • 64% of companies that generate more than 50 leads per month either “Don’t Know” or receive feedback on less than 20% of these leads from their distributors or independent reps.
  • 62% of companies in total report that they either “Don’t Know” or receive feedback on less than 20% of the leads they share with their distribution channel.
  • 47% of companies that sell 75% or more products through distributors or independent reps do not know if their shared leads are even being contacted.

Promptly following up on leads is crucial to closing more sales. In fact, Gartner Research reports that 43% of sales go to the company that calls the customer back first.

“Every lead is the chance for not just one sale, but a lifelong customer,” Johnson says. “For manufacturers, improving communication with distributors and maximizing leads is the fastest way to give their revenue a boost.”

About LeadMethod

LeadMethod is the leading provider of Distributor Relationship Management software helping companies that sell through independent reps and distributors improve collaboration, visibility, and conversion rates. For more information, please visit http://www.leadmethod.com.

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Kelly Kearsley
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