Want to know the most expensive marketing tool in the world? A poorly managed lead.
Lead generation is, by far, one of the most expensive elements in a marketing campaign. So, why are companies throwing good leads away after 30, 60, or 90 days, like expired gallons of milk?
The average sales funnel looks a little like this:
- Spend your hard-earned money generating leads.
- Sell to the leads that are ready right now.
- Watch your profits inch up incrementally.
- Watch profits sink back down as you spend them to generate more leads.
- File the rest of the leads you already paid for in some dark corner of your CRM where they’ll grow old and dusty.
- Hope someone remembers to call them at some point before their 90-day expiration date.
Your company might be incredible at lead generation. But if you’re consistently letting “old” leads off the hook, your sales funnel probably looks more like a sales strainer.
From Lead Generation To Lead Conversion
The Newsletter Pro grew 2,975% in 3 years and shows no signs of slowing down. Yes, we’re good at lead generation. But want to know a secret? Of those sales, 36% happened after 90 days, and many closed after 365 days.
Let that sink in. While 2,000% growth is an impressive feat, and still would have landed us on the Inc. 500 list for 2015, it would not have put us at #120. Now, we aren’t saying this to brag, but rather to emphasize that there are millions of dollars in lost opportunities waiting for you to collect. You’re leaving a huge pile of cash on the proverbial table.
I know what you’re thinking. You’ve hired the best, and you work with the best. There’s no way you could possibly be letting that many customers get away without realizing it.
But, according to a recent study conducted by Infusionsoft, a customer relationship management software company, the percentage of deals that closed increased by 8 times after the 4th meaningful touch by a company representative. The key there is meaningful. There must be more intention and thought put into an interaction than merely making contact.
Call, Segment, And Follow Up
Your initial call to a customer shouldn’t be your only call. Just because they aren’t ready to buy right now doesn’t mean they won’t be later.
Your first call with a customer should be an assessment to segment them into branches and timelines for potential selling. A skilled appointment setter or sales representative will be able to assign the correct type of follow-up that will be most beneficial to the lead, speaking to their pain points and persuading them to see your company as the solution.
While there is no exact science to predicting when a prospect will make the decision to purchase, there is a way to gauge a lead’s excitement and cater the follow-up to their level of need for interaction. The more excited (and motivated to buy) the lead is, the more frequent and personal the communication.
Customers with a shorter buy outlook should receive more personal attention and a set of marketing materials that speaks to their priorities for their business. Customers that are further out from making a purchase can be segmented into long-term nurture categories to receive informational materials, white papers, emails, and less frequent individual attention.
A Little Money Spent Nurturing Your Leads Will Pay Off In The Long Run
Long-term lead cultivation is an art in and of itself, but when you consider the money you put into acquiring the leads for your sales funnel, it becomes apparent that you can’t afford to have any leaks. Leads are expensive, but once you’ve got them, their value — even compared to the cost of nurturing them — is off the charts.
Let’s say following up with a prospect for a year costs you $12 for their monthly newsletter, nothing for a few emails or phone calls (aside from pennies on payroll), and $1 to $2 for the occasional postcard or other direct mail piece. That extra $14 investment for a new client who stays for years is worth every bit of effort.
So, when it comes to nurturing your leads, follow up with them relentlessly. You can’t afford to let them get away. A phenomenal way to continue to follow up with leads and engage with them is to send out a custom print newsletter. This is the first step and one of the tools we’ve used to spur our own rapid growth here at The Newsletter Pro. We engage, we communicate, and we let them know we’re still here. We build relationships that create a trusting and loyal relationship.
Your leaky sales funnel is costing you. Stop the gaps and watch the money start flowing.
If you want to follow up with your leads and engage with them then custom print newsletters is the way to go! Spur your own rapid growth by clicking the button and requesting a copy of our Amazon bestseller, The Ultimate Guide to Newsletters!