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Top > Knowledge Creation Laboratory by CRM(xRM) > [Series: Changing "Marketing Costs That Don't Lead to Sales"] Part 1 — Why aren't orders increasing even though potential customers are coming in? 7 situations where promotional efforts lose their effectiveness and the structural causes.

[Series: Changing "Marketing Costs That Don't Lead to Sales"] Part 1 — Why aren't orders increasing even though potential customers are coming in? 7 situations where promotional efforts lose their effectiveness and the structural causes.

Hello, this is Matsubara, CRM Evangelist.

"I exhibited at a trade show and collected 100 business cards, but only managed to close 3 deals."

"We receive 50 inquiries via the web each month, but fewer than 10 of them lead to actual business negotiations."

"Our social media followers are increasing, but we don't feel like it's reflected in our sales."

Many business owners and marketers face these kinds of problems. At first glance, it may seem like the issue is that "the quality of the strategies is poor" or "the target audience is off," but in many cases, that's not the real cause.

**The core of the problem lies in the fact that "the opportunities created by sales promotion are being lost in the subsequent processes."**

This series will explore the structural reasons why the effectiveness of promotional investments diminishes and discuss promotional design strategies that "achieve greater results with the same budget."

The first topic is "Seven situations in which the effect disappears, and the structural causes behind it."

7 situations where the effectiveness of sales promotions "disappears"

The "opportunities (interest, curiosity, and inquiries)" generated by promotional activities quietly disappear in the following seven situations.

[7 situations where promotional efforts lose their effectiveness]

Scenario 1: "We can't act before the lead from the exhibition cools down."
To visitors who made a good impression at the exhibition
Follow-up calls will begin in 1-2 weeks.
However, visitors were attending multiple exhibitions,
The heat level decreases day by day.
If a competitor follows up the next day, it's too late.

Scenario 2: "Replies to web forms will be sent on the next business day":
The system is designed so that inquiries made at night or on holidays may not be noticed until the following morning.
In a market where "companies that respond quickly are chosen,"
The procedure is that "a representative will check it on the next business day."
This is creating a competitive disadvantage.

Scenario 3: "We cannot determine which channels are leading to results."
We are investing in multiple promotional channels, including advertising, trade shows, social media, and referrals.
We are unable to track where the final customer who placed the order came from.
We're allocating next month's budget based on intuition, without being able to verify the results.

Scenario 2: "We are unable to convert first-time customers into second-time buyers."
We acquired new customers through the campaign.
However, there is no design to encourage repeat purchases.
They're just one-time customers who only buy once and never return.
The acquisition cost (CAC) is not being recovered through the lifetime value (LTV).

Scene 5: "The quality of follow-up varies greatly depending on the person in charge."
Experienced trade show leads convert into deals, but
Newcomers account for less than 10% of the workforce.
This difference is not a difference in talent, but a difference in the presence or absence of a system in place.
The winning patterns of veteran players are not articulated or shared.

Scene 6: "Measures for existing customers are being delivered uniformly without regard to their emotional state."
The uniform approach of "sending the same direct mail to all customers" is,
Making careless contact with a customer with whom you have a strained relationship
There is a risk that it will have the opposite effect.
The decision of "how to contact this customer now"
It depends on the individual's judgment.

Scene 7: "The most important sales promotion channel, referrals, is not designed"
From the perspective of the cost of acquiring new customers (CAC),
Referrals from existing customers offer the best cost-performance ratio.
However, "Who introduced me?" and "Who is likely to introduce me?"
This information is not being grasped, and there is no design in place to increase referrals.

"There's a hole in the bucket"—the essence of the structural problem

I will use a simple metaphor to organize the structural problems common to these seven scenarios.

[Structural problems explained using the metaphor of "holes in a bucket"]

Pouring water into a bucket = Promotional investment
By advertising, exhibitions, flyers, social media, and events
"Potential customers, interest, and inquiries are generated."

A hole in the bucket = a structure that makes opportunities disappear
- Slow to follow up (holes 1 and 2)
・Cannot be tracked (Hole 3)
- No continuation design (Hole ④)
- Not reproducible (hole 5)
- Contact that ignores context (Hole 6)
- No introduction design available (Hole 7)

Actions taken by many companies:
"There's not enough water → Let's pour in more water (= increase advertising spending)."

Structural solutions:
"There's not enough water → Let's plug the hole first (= improve the process that causes opportunities to disappear)."

→ Even if you increase the water without blocking the holes,
The amount leaked will only increase; the yield will not change.
By blocking the holes and then increasing the water level,
The structure will result in the amount invested being accumulated.

When many business owners feel that they "don't have enough advertising budget" or "don't have enough strategies," it actually means that "the process for receiving opportunities hasn't been designed properly."

Six variables that determine promotional ROI: Focusing on "rate" rather than "quantity"

The ROI (Return on Investment) of a sales promotion is determined by multiplying the following variables:

[Six Variables that Constitute Promotional ROI]

Promotional ROI = ① Number of leads × ② Lead to deal conversion rate × ③ Deal to closing rate
× ④ Average customer spending × ⑤ LTV coefficient × ⑥ Referral coefficient
÷ Promotion expenses

① Number of leads (number of contacts generated by sales promotion)
← Advertising, trade shows, and social media are the main drivers.

② Lead-to-sales conversion rate (the percentage of inquiries that resulted in sales opportunities)
← This determines the speed of follow-up and the quality of the initial response.

③ Negotiation → Closing Rate (Percentage of negotiations that resulted in orders)
← This determines the accuracy of the proposal, the depth of the interviews, and the timing.

④ Average customer spending
← This determines the design of the proposal and whether or not upselling is involved.

⑤ LTV ratio (the ratio of repeat and additional purchases)
← Onboarding and follow-up design is decided

⑥ Referral coefficient (average number of new customers brought in by one customer)
← The design that encourages satisfaction and referrals is decided.

→ Many companies are trying to increase only ①.
However, by improving just one of ② to ⑥ by 10%,
The final promotional ROI has the same effect as increasing ① by 10%.

Having a design that simultaneously improves ② through ⑥ is important.
The only way to dramatically change results with the same promotional budget.

"Patterns of missed opportunities" by channel: Where and what is disappearing?

We will break down the major promotional channels to identify where missed opportunities are occurring.

[Patterns of missed data by channel]

■ Exhibitions and business meetings
Missed opportunities:
The information about "which visitors are currently the most enthusiastic" is not shared.
There is no record of "who reacted, when, and to what."
The priority given to follow-up depends on the individual's judgment.

Ideal design:
The "emotional temperature (level of enthusiasm)" and "content of the reactions" of visitors
Record it on the spot, and the next morning...
The "List of things to follow today" will be automatically displayed.

■ Web Forms / Landing Pages
Missed opportunities:
Form submission → Email received → Person in charge confirms → Transcribing →
The multi-stage delay of following up leads to "replies on the next business day."

Ideal design:
The information is registered directly in the CRM the moment the form is submitted.
A notification will be sent to the person in charge's smartphone.
Making initial contact within 30 minutes is what sets you apart from the competition.

■ Campaigns for existing customers
Missed opportunities:
By sending the same message to everyone,
Making inappropriate contact with a customer with whom the relationship has cooled.

Ideal design:
Depending on the customer's emotional state (the warmth of the relationship)
Change the message you send, the timing, and the content.
Make proposals to "currently active customers."
For customers with whom our relationship is cooling, we will prioritize repairing the relationship.

■ Social Media and Content Marketing
Missed opportunities:
Even if follower engagement increases,
The conversion path to "actual prospects and customers" has not been designed.
"People who became interested through social media made inquiries."
The connection is not recorded.

Ideal design:
Record the "source of the prospective customer (referral)" for all cases.
We track "what percentage of leads generated via social media ultimately resulted in a sale."
Shift next month's budget to channels that are proving effective.

■ Referrals and word-of-mouth
Missed opportunities:
I don't know who made the referrals or how many.
The expression of gratitude to the customer who made the referral ends with "thank you."
There is no mechanism for generating subsequent referrals.

Ideal design:
We identify and provide special support to "connector customers" who make a large number of referrals.
We will send a thank-you message within 24 hours of receiving a referral.
This experience made me want to recommend the connector again.
It continues to generate motivation.

It occurs regardless of the size of the organization—from small and medium-sized enterprises to large corporations, "the location of the vulnerability is the same."

It's often thought that "missed opportunities are a problem for small and medium-sized enterprises," but that's not the case.

The larger an organization becomes, the more serious problems such as "information disconnect between the marketing and sales departments," "differences in tracking accuracy among different personnel," and "the dispersion and personalization of customer information" become.

It's not uncommon for large companies to spend hundreds of millions of yen annually on promotional activities, yet have a lead tracking rate of less than 50%. Half of the business cards collected at trade shows disappear without a trace—this problem is faced equally by startups and large manufacturers alike.

[Differences in hole characteristics by size]

Small and medium-sized enterprises (~50 people):
Characteristics of the flaw: There is no record-keeping system; it relies on the memory of the person in charge.
Because even one missed opportunity can directly impact the business,
The greatest impact per case

Medium-sized companies (50-500 people):
Characteristics of the problem: Information disconnection between departments, decreased rate of data entry into CRM,
Failure to hand over responsibilities when the person in charge changes.
The larger the customer base, the greater the total amount of potential lost opportunities.

Large corporations and group companies (500+ employees):
Characteristics of the vulnerability: Fragmentation of customer information between locations and business units.
Lack of coordination between headquarters marketing and field sales.
Lack of global standardization of management criteria
The total amount of missed opportunities is the greatest,
It's even difficult to determine "what percentage we're missing."

→ A common solution is to "capture opportunities as they arise in real time."
A system that automatically suggests the next action based on the customer's current status.

Summary of the first session: "Before increasing the number of measures, we need to establish a system for receiving them."

Let's summarize what we discussed in the first session.

The fundamental reason why promotional efforts lose their effectiveness is not the "quantity or quality of the measures," but rather the "process by which the opportunities created disappear."

The seven missed opportunities, the six variables that determine ROI, and the missed opportunities patterns by channel—all of these point to one thing.

Before increasing advertising spending, the first thing to ask yourself is, "Have we designed our strategy to capitalize on all the opportunities currently being created with our existing budget?"

Next time preview: In the second installment, we will explain "How to Double Your Return on Investment by Designing a 'Sales Promotion Loop' from Lead Generation to Referrals." We will show how to design the five phases of awareness, nurturing, negotiation, closing, and referral as a single continuous loop, and provide an ROI estimate.
EMOROCO CRM Lite Product Page

Next time: [Part 2: From Lead Generation to Referrals—How to Design a "Sales Promotion Loop" and Double Your Return on Investment]

Related article: [Implementing EMOROCO CRM Lite with the Digital AI Introduction Subsidy 2026 - A Complete Guide to Application Procedures, Subsidy Amount, and Eligibility Requirements]

Related article: [Series: Sales Process and CRM 4.0, Part 4 - SoI-PDCA, Eliminating Dependence on Individuals, Competitor Comparison, ROI Estimation]

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Person who wrote this article
Shinsuke Matsubara

Arcus Japan Representative Director / CRM Consultant
Click here for detailed profile
He has worked as a system engineer, architect, and consultant at Accenture and other companies, an evangelist at Infragistics (Microsoft MVP for Dynamics CRM (now Microsoft MVP for Business Solutions)), and a solutions specialist at Microsoft (in charge of Dynamics CRM products).He currently leads a service team specializing in CRM, supporting CRM implementation and business launches for companies of all sizes.At the same time, he works as a CRM evangelist, spreading the idea of "true" CRM through events and article contributions.
Having learned CRM at Accenture, and having advocated and globally popularized CRM 2.0 (platform-based CRM) at Microsoft, he is a legitimate successor to CRM and the longest-serving active CRM expert (CRM consultant/CRM doctor), having received an award at Worldwide.
Since then, as a leading expert in CRM who advocates CRM 3.0 (Personalized CRM) and CRM 4.0 (Creative CRM), he has been interviewed and received numerous awards both domestically and internationally from publications such as The Wall Street Journal, Newsweek, TIME, WORLDCOM, Mainichi Shimbun (Weekly Economist), and Nippon Cultural Broadcasting. He has also been selected as a representative company of the Kansai business community by "Keizaikai" for four consecutive years.
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