Your marketing strategy brings in the leads, but it is your sales strategy that makes you the profit.
The sales and marketing process is often a mystery to small business owners. We all understand that we need to market to create sales, but the whole idea of selling can absolutely make our blood run cold!
In many cases we throw money at an advertising campaign or a clever promotions strategy developed by a consultant we met at a networking event, and we hope new customers will come flooding through the doors.
Most times – the customers never flood in, we throw our hands up in the air, we call the campaign a failure and go back to what we are comfortable doing.
But every now and then we stumble on a marketing strategy that actually generates an inquiry or two! Now what do you do?
This is where your well designed sales strategy should kick in. Having captured a sales lead, it is critical that you now maximize your chances to convert the lead into a paying customer.
While marketing KPIs are all about the number of leads you generate and the cost to get each lead, your sales KPIs need to be focused on the conversion rate of leads to paying customers and the amount of money each customer then spends with you.
Let me step through 6 phases of lead management that will help you achieve higher sales conversion rates.
Phase 1 – make sure your marketing campaigns are properly targeted to your ideal customer type so that your sales leads are already warm to your business.
Phase 2 – qualify each lead in terms of their sales readiness and their potential lifetime value as a customer.
Phase 3 – prioritize the leads for follow up based on your qualification process.
Phase 4 – nurture your leads and build solid, meaningful relationships with them rather than trying to sell them stuff immediately
Phase 5 – use a Customer Relationship Management system to properly manage the sales process by keeping your focused on the relationship and persevering until you achieve the sale
Phase 6 – constantly evaluate and measure the success of your sales system looking for ways to make improvements to your conversion rate.
The success of your sales lead management system can be measured by looking at your sales conversion rate (new clients / number of leads) and the customer acquisition cost (marketing cost / new clients). Track these KPIs constantly and act on the trends that you see developing.
Improving your conversion of leads into sales is a surefire way to massively increase your business profit – and it is really pretty easy to achieve if you follow the 6 step process I have just outlined for you.
Want to know more about how to massively increase your business profit? Check out my business coaching program based around our 5 step system to achieving massive business growth.
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