Many businesses say: “All I need is generate more opportunities, more leads. With more leads, I can close more business. More business will create additional revenue and I’ll make more money.”
It’s partly true, but what is your lead generation strategy? There are many types, and what works best for your individual business is important.
No matter how many leads you get, the key is how often you convert the lead into a client. If you have 400 leads and convert one, it’s a very poor percentage. You need to know your conversion rate so you can increase it. (Most businesses think they have a higher conversion than they really do.)
Look at your actual conversion. Multiply the number of leads you have—for a week, a month, or a year—and multiple it by your actual conversion rate. This equals the number of clients you have.
One of the most expensive things you can do is implement a strategy to increase leads without first developing a plan to increase your conversion rate. Track your conversion rates on both a daily and monthly basis. You can’t improve what you don’t measure.
If you bring 1,000 prospective customers to your website through advertising and your online sales conversion rate is 5%, then you’ll secure 50 new customers. But, if your conversion rate improved to 6%, you would gain 60 new customers. You boost your profit easily by increasing your conversion rate.2
Buying from you is a leap of faith for new prospects. Consider a plan of conversion that includes stages of engagement. These stages may include information, conversations, and trial closes such as “If we were able to offer you this for a price that works for you, is this something you’d like to move forward with?” Trust is also built through the social proof of satisfied customer testimonials or offering a guarantee that gives customers a greater degree of confidence in making a purchase.