Why Ineffective Lead Management Hurts Profitability
The Importance of Lead Management with Marketing Campaigns
How Lead Generation Programs Without Effective and Efficient Lead Management Can Hurt More Than Help
As consumer buying behaviors and expectations continue to evolve, many local business leaders struggle with lead management systems helping them make sure that every new lead takes a potential client through an excellent client experience. Often times local business lead management processes depend heavily on (sometimes entirely on) people. While having a lead generation campaign is important, having a lead management system is equally important.
In a study conducted by MIT, FranklinCovey, Kellogg School of Management and InsideSales.com on Lead Management in 2007 using 3 years of client data, the findings showed the importance of timing with lead response with advertising and marketing for businesses. In fact, many of the findings were very surprising as here are a few of them.
- The odds of calling to contact a web lead decrease by over 10 times in the 1st hour,
- The odds of contacting a lead if called in 5 minutes versus 30 minutes drop 100 times,
- Time of day and day of week each have significant impact, with time of day being the greater of the two,
- Immediacy of response far overshadows both time of day and day of week in its effect on contact and qualification ratios,
These results shocked many people – especially considering this was 5 years ago and expectations have only increased over time. So what does this all mean and how do local business leaders implement lead management systems to help them win more business through excellent client experiences? Here are a few tips.
First, every local business needs some system to track and communicate with clients (and leads). This system needs to be documented and communicated. This lead management process should also be integrated into a software program that helps with these processes. Many Customer Relationship Management (CRM) systems today are very cost effective software as a service programs. In fact, Social180 has a couple of home improvement clients who pay less than $25 per month per user for this type of CRM.
Second, every form of advertising or any marketing campaigns need to be tracked for results. This doesn’t only mean asking someone how they heard about you, but more so having specific tracking methods in place – unique telephone numbers, web forms, emails, etc. After all, if a local business leader chooses to spend $2,500 on advertising and needs $25,000 in profitable revenue to justify the advertising expense, you must be able to track every lead associated with this and other marketing campaigns.
And finally, local business leaders must measure and track the results of all marketing and sales efforts. In other words, its not enough to know that the $2,500 in advertising made the phone ring 20 times or even that it led to 10 proposals. You should also know how many wins, how much revenue was associated to these wins, the overall and individual profitability of the wins and who are your team had the best win ratio. Again, a properly implemented CRM should be able to help with this degree of lead management and tracking of advertising expenses.
In summary, spending money on advertising and marketing campaigns without a lead management process could be costing you more than the expense is worth. In the scenario above, spending $2,500 to make the phone ring 20 times is one thing. Getting the 10 proposals and winning $25,000 in profitable revenue is another. However, they could all be part of the same system and process.
Lead Management is important with growing and scaling a small, local business. For help with lead generation and lead management, give Social180 or call or connect with us on our social communities – Facebook, Google+, Twitter, YouTube and LinkedIn.