- We don’t have an optimal sales process to follow-up with leads not ready to buy
- We send emails out to our database; but the segmentation and content approach needs optimizing
- Our current content writers don’t understand how to make lead nurturing work
- Our sales quotas are not being reached consistently
You have leads. It’s too bad most are not ready for sales. In fact, based on industry average, 85% of leads that enter your funnel are not ready.
Companies that succeed in business have a plan to nurture those leads into sales. Paul Mosenson and many of our content strategists have become national thought leaders on the benefits of lead nurturing, and continue to advocate the stance that without a sound nurturing process, leads that would be ready to buy instead buy with competitors.
Lead nurturing is a systematic process for regulating the flow of leads between marketing and sales.
The science behind selling says everyone engages in a series of steps before making a purchase:
- Defining a problem that needs to be solved
- Educating about potential solutions to the problem
- Determining the appropriate course of action to solve the problem.
Lead nurturing helps companies maintain a continuous dialogue with potential customers during the buying cycle.
Where most companies focus on generating leads into the “top of the funnel,” most companies do not have an adequate system to handle non-sales ready leads. With the emphasis on new sales-ready leads, those leads that are deemed “not-qualified” now can very easily be qualified within 6 months to 2 years provided they are nurtured through their individual buying cycles.
The benefits of lead nurturing are:
- Increase in qualified leads
- Increase in revenue by maintaining relationships with potential customers who aren’t ready to buy in the short-term
- Increase sales rep productivity by reducing the time sales reps spend educating leads
- Educate and influence potential customers about products and solutions
- Decrease in cost of sales
- Improved conversion rate
- Increase transaction size
- Increase marketing ROI
Based on industry numbers, you can expect 15% more sales from nurtured leads.
In fact, best-in-class companies (Best-in-class: Top 20% in revenue and lead generation results):
- Twice as likely to have a lead nurturing program in place, as compared to “average” companies (middle 50% of companies)
- 4.6 times more likely to be involved in lead nurturing, compared to “laggard” companies (the bottom 30%)
- Experienced nurtured leads averaging 47% large order sizes than non-nurtured leads
- Achieved higher revenues, better campaign response rates, lead qualification rates and average order sizes.
Let’s go back to our sample exercise. Earlier when discussing conversions we showed the effect of an increased online conversion rate due to optimization:
- Pay-per-click budget: $50,000
- Online leads generated (12%): 1,200
- Sales generated offline (2.5%): 30
- Total revenue: $150,000
- Net Profit: $100,000
Let’s add a few more variables: Out of the 1,200 online inquiries shown above, let’s assume 50% are marketing qualified leads, or 600. Out of that 600, 15% will not buy, so the remaining leads amount to 510. Let’s be conservative and suggest that 5% of those remaining leads are sold due to the nurturing process. That’s 25 sales. The original scenario had an average profit per sale of $5,000. That’s $125,000 in additional revenue thanks to lead nurturing.
Key Content Statement
A lead nurturing program is best utilized via a Marketing Automation platform (next stop). It starts with content. The proper way to nurture leads is to provide interesting and relevant to content via drip campaigns towards each key stakeholder, and guiding those stakeholders throughout their purchase cycles with engaging content until they are ready to speak with a salesperson.
Summary of Approach
We specialize in lead nurturing program implementations. A sound lead nurturing marketing program has proven to increase revenues for firms. This is best executed via Marketing Automation platforms, of which we resell and can help implement at your firm.
Next Stop: Marketing Automation