In an earlier blog post, we explained how Teamleader helps you manage your sales funnel and optimise the sales process. But while we may argue we help you grow your business, what proof do we actually have?
In this article, we summarise how Teamleader actively helps increase revenue and profit - through actual data. And the numbers don't lie: Teamleader users close 23% more deals and close them 35% faster.
To get these numbers, we extracted and analysed data from over 6000 businesses that use Teamleader over the period of 2016 to 2018. Of course, any captured data was anonymised to maintain confidentiality.
The most important numbers
Fun fact: in 2018, Teamleader users were responsible for a staggering amount of 4.5 billion euros in revenue.
Safe to say we’re proud of the contribution our community brings to the entire economy. But there’s more remarkable stuff to be found in our data:
- Teamleader users close 23% more deals and close them 35% faster
- Teamleader users have an average conversion rate of 30 percent
- All Teamleader users together create 5000+ sales deals on an average day
- 2 out of 4 Teamleader deals are closed within 16 days, 3 out of 4 within 50 days
- Repeat customers of Teamleader users are 20% more likely to convert
- Repeat customers of Teamleader users convert at 43% on average
- Repeat customers of Teamleader users convert after only 38 days, versus 52 days for new customers
Turns out Teamleader users are quite good at sales. Coincidence? We think not.
Businesses using Teamleader sell better… and swifter
Our biggest finding: businesses that use Teamleader close 23% more deals, and close them 35% faster once they’ve adopted our software. This shows we’re actively helping businesses perform better and improve sales velocity over time.
Businesses that use Teamleader convert deals 23% better, and reduce the sales cycle duration by 35%.
These charts indicate how the deal conversion rate increases over time, while the sales cycle duration decreases.
It’s great to see we’re really helping businesses not only sell better, but also reduce the time investment needed to go from adding a lead all the way to collecting cash.
But what are the driving factors behind the success of these businesses? Let’s dive a little deeper.
#1: One source of truth
For starters, simply having one database to retrieve customer data or keep track of sales makes all the difference in the world.
There’s just one source of truth, which means less time is wasted looking for the right information. It also means sales people can actually focus on selling.
Still using Excel to manage customer relationships? Find out why you too need a dedicated tool to manage customer relationships.
#2: Sales needs discipline, CRM breeds discipline
On average, over 5000 sales deals are created in Teamleader each day. While not all of these turn into actual sales, we see that about one third of all opportunities are converted into won deals. That accounts for an average conversion rate of 30 percent.
Sales requires discipline, though. That’s where Teamleader is a huge help, with features like an easy-to-use sales pipeline and colour-coded deals reminding our users which leads need attention.
And it shows: two out of four deals are closed within 16 days, and 3 out of 4 within 50 days. This only proves how important timely sales follow-up is. For businesses that leave deals hanging for too long, we notice their chances to close that deal drops drastically after 6 months. Time to clean up those old deals, then?
#3: Customer centricity paramount to sales success
It’s no secret that we’re big advocates of customer centricity. And with good reason, since repeat customers:
- Spend more
- Are easier to sell to
- Cost less
- Promote your business
Much of this still rings true if we look at our own data:
- Deals from recurring customers are 20% more likely to close than new customers. Converting at 43% on average, it’s safe to say recurring customers deserve your undivided attention.
- This rate only increases the more you do business with repeat customers. In fact, the 4th time a customer asks for a quotation, you have a 74% chance of closing the deal again. And sooner, too - it’ll take you 38 days on average to close recurring customers, versus 52 days to close new ones.
This just goes to show it’s worth taking extra care of your existing customers, and keeping them happy!
Wondering how and where to start? Check our insightful webinar with customer-centric sales guru Jacco van der Kooij.
#4: It’s easy to sell to who you know well
What didn’t come as a big surprise: the more information you acquire of a prospect, the more likely they are to convert into a customer.
An estimated 40% of B2B leads suffer from poor data quality. - Technology Advice
According to Technologyadvice.com, an estimated 40% of leads suffer from poor data quality. If you’re working with a database of inaccurate (or missing) information, you’ll have a pretty hard time connecting with leads - let alone converting them.
Obviously, CRM software can be a great asset there - as it helps you track past interactions with current and future customers, shows you all relevant customer information (like location, vertical, or company size) in one place, and helps you identify where prospects are in your sales funnel.
In fact, we’re always aiming to help businesses make more sense - and use - of their own data. The insights shared above are just one example of how we can leverage data to help SMEs become more effective.
Let’s make Teamleader even smarter
Today, we’re introducing two helpful standard fields in Teamleader, perfect to help you leverage your own sales data:
The Expected Close Date is when you expect a potential customer to accept or decline your proposal. Use this standard field to create segments containing all deals you expect to close next month. It’s a great way to follow up on leads efficiently!
The Deal Probability Rate, in turn, helps you set the likelihood for a deal to be won. This way, you can get a weighted amount per deal in the statistics, and forecast more precisely - or realistically.
The combination of these two new features offers quite some benefits:
- Help focus on deals that will be closed soon
- Know where to direct your efforts (based on probability)
- Weighted expected revenue*
- More accurate & realistic forecast
* The weighted expected revenue = deal value x probability. It gives you a clear idea of the revenue you’ll generate in the near future.
We strongly encourage you to start tracking the close date and deal probability, and to fill out as much data as possible. Deal source, deal value, the responsible user, the deal loss reason: all these will help you make smarter decisions in the future.
But most importantly: these sales statistics pave the way to more and deeper business insights for your business. Think weekly extended sales reports, giving you more in-depth insights into your sales funnel. Or a clear overview of your deals per expected close month. Those are just a couple of examples of what we’re working on.