It’s All About The Numbers
The cost of acquiring one new customer is, on average, 65% of the initial spend. Consider the promotional items, salaries in marketing and sales, expenses, and divide it by number of closed new customers. WOW!
The market is demanding more customization to their needs, and their attention span is decreasing. Additionally, most people don’t think they need sales reps; they think they can do it all themselves on line! Customer acquisition costs are rising.
Doubling conversions out of the same number of leads is extremely cost effective, driving down that acquisition cost. Let’s assume that you have a steady flow of moderately qualified leads. How do you double conversion?
Lead scoring is a process by which you can readily identify how to approach a prospective customer. What behavioral metrics matter most to your business? Website visits? Foot traffic? Email opens? Returned calls? What objective metrics? Available budget? Size of need? Timeline? Number of Decision Makers? Declared need? Anticipated need? What subjective metrics? Do you know the buyer personally? Were they forced into the market due to a problem? Are they a previous customer? Are they a referral?
Once you’ve identified the specific list of relevant metrics, collect them for every prospect (and for client management, for every existing customer.) Assign each metric points on a scale of 1-3. As the score increases, the likelihood of their closing increases. Continue to update the scoring after every contact with that prospect to keep the numbers current and the profile up to date.
All of these metrics and more can be combined to create a score or profile of your lead. Check the numbers by category, and consider the story they tell. Behavioral metrics may indicate high interest, while objective metrics may indicate the prospect is still in the research phase. Subjective metrics may say this relationship needs some strong people skills.
News You Can Use
Leads with a lower overall score will require more discovery and nurturing behavior. Leads with a higher score will require more urgency development and alignment of your offering with their needs and goals. Knowing how to apply your efforts reduces the percentage of leads that fall out of the pipeline. The conversion rate increases, and those deals stay closed.
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