First Business Growth Multiplier – Leads
Today we are going to introduce the First Profit Multiplier – Leads
What is a lead?
Basically whatever you define them as in your business. They could be
• subscribers to your e-mail list
• the number of phone calls
• enquiries from all sources like phone and e-mail website enquiries
• the number of people that into your shop.
Leads are people who you have the opportunity to talk to communicate directly to them in some way.
However when you decide is to define leads, they should be would be able to be measured in some way on a regular basis without a great deal of difficulty or ideally recorded automatically.
The first step in defining leads is establishing a benchmark on which you can work from.
It is very common especially in small businesses that leads not measured in any way.
It ends up being a guess and usually overestimated as to the number of leads the business receives.
Without measuring or understanding of how many leads you get and where they come from, you end up running around doing many different things hoping you get some traction on something but not really ever knowing whether a particular channel marketing idea works.
You need to think about also understanding and recording where those leads come from such as website, referrals, advertising, e-mail, walking from the street, special promotion, Facebook, YouTube the list goes on.
We find that most small businesses don’t actually have enough leads, they are usually pretty good converting leads but because they don’t have enough leads, they end up taking every job that comes their way, regardless of whether the job is great their business.
So we are looking to increase the number of leads for your business.
Remember in the five multipliers, we just had a 10% increase each year. What you are looking to do is not to one big thing that generates as a 10% increase but do multiple small things that each generate a half percent to 1% increase – direct actionable ideas that you can get finished and applied rather than one big idea that may not work.
You also need to remember that some leads will be more expensive than others as you will be measuring the cost of each generate lead generation channel, which goes to the fourth profit multiplier gross profit.
For example, a radio campaign costing $30,000 may bring in 1000 new leads but that is at a cost of $30 per lead, whilst a referral from existing client costs nothing.
In the first instance we are looking at the low hanging fruit for ideas to increase leads that can be implemented quickly at a low cost.
What are the different ways that you can increase the leads coming into your business by just a small percentage.
The best form of leads are referrals from your existing customers and clients.
These referrals are more likely to buy, they have fewer objections and are further along the sales process, so that is the cost of converting a referral lead is lower.
Often a referral lead just wants to buy – your sales script might be a simple as “How would you like to pay?”
Most businesses rely upon the customers and clients to refer new leads them on their own without any input, suggestion or reward from the business.
So when you’re thinking about building up the leads from referrals consider putting a referral strategy a system in place your business and it’s quite simple.
You can engage and planned the seed for future referrals can actually be done in the sales process itself like “You be so happy with the service that you will want to refer all your friends” or “We expect that all our clients will refer at least 5 people to our business.”
This is the second easy way for your business to get more leads is from e-mail.
E-mail a very powerful and extremely cost-efficient. This strategy works for both the First Profit Multiplier – Leads and the Second Profit Multiplier Conversions.
If you haven’t got an e-mail list already then the first place to start is get all the email addresses for all your past and current customers. Using a email service like Mailchimp, aWeber or Office Autopilot (which we use) and communicate with them on a regular basis with an informative valuable content that is relevant to them.
One of the great things about email, it that you can use it through email autoresponders to automate your marketing efforts, plus you can fantastic reports as to the effectiveness of your email campaigns.
Today your website should be a major provider of leads to your business.
However a website alone will not bring you any leads without traffic. You need to understand how to drive traffic to your website. A mistake that many people make is that they expect that just having a website will bring them leads.
Websites are fantastic way of building leads to your business especially in the long term but they do require work to build up.
I like to think of a website as a salesman in which you need to provide assistance, support and training to make sure they really work for you.
Is there a community, group or organisation that services, in some way, your target customers. The leads from a networking group could easily provide you with a 1% increase in the number of leads to your business.
Remember we are just looking for many small improvements.
Facebook, Twitter, LinkedIn – in these social media platforms you can target your ideal customers, engage with them.
Which platform that you use will depend upon your business and its customers.
Long forgotten these days but still effective. The main problems with direct mail is somethimes the cost and measurement especially when compared to email.
If you are thinking of any direct mail campaigns, read up on “direct response” so that you can benefit from all the decades of knowledge that people have been using direct mail successfully.
The old staple of marketing – advertising. When you are thinking of advertising, I want you to forget all about advertising your brand, leave that to Coca Cola, Mercedes and Proctor and Gamble.
Any advertising that you do should answer the following questions:
• What do I want people to do?
• Does the ad have a compelling call to action? and
• How can we measure the effectiveness of the ad.
Using advertising to generate leads could include: Google Adwords, Facebooks ads, local papers, trade magazines, radio, television.
There are hundreds or thousands of different ways that you can increase the number of leads to your business.
Remember using the profit multipliers is about continuous improvement, in which many small improvements to each of the 5 multipliers will have an exponential effect of the value of your business.
Next week, the 2nd Profit Multiplier – Conversions