After working with a variety of businesses since 2012, we’ve found a very common problem that can determine whether a marketing campaign is successful or not. In 2019, businesses will spend nearly $130 billion dollars on digital advertising.
The internet has provided an amazing opportunity to attract new customers. Yet, it has also helped create a culture of “I want information now” buyers. This presents a unique challenge to local business owners and their staff. Time and time again we see great marketing campaigns (and a lot of money) go to waste due to poor lead management.
Our experience and data prove when you fail to respond to leads generated from your digital campaigns in a timely manner, your chances of conversion dwindle with every second that passes.
Slow Response to Leads Costs Time And Money
Harvard Business Review did a study and found that
71% of internet leads are wasted. Imagine the time, effort and money spent to generate those leads.
We live in a world where instant gratification is the expectation and business moves at the speed of light—fiber optic light. The light waves that carry the data the world runs on via the mass infrastructure we know as The Internet.
Digital marketing agency owner, Hector Garcia of BrandNation knows that every second counts in this technology-driven, fast-paced era we live in.
“Thanks to technology everyone is looking for quick answers. If you wait to respond until tomorrow, chances are they have already moved on or forgot about their own interest.”
Every Minute Matters.
Your chances of turning a lead into a valid sale literally live and die in a matter of minutes in this global, on-demand digital landscape that has become an explosive majority platform given the rapid growth and limitless market reach. In fact, studies show some pretty telling facts regarding lead response time and how it affects your success in your given market.
You Have Mere Minutes To Contact A Lead
It sounds harsh since most companies given their limited staff can’t answer to every single lead immediately—but on average the lifespan of a certified lead is about five minutes. If your business does not reply to a lead within the first five minutes of the lead origination—the chances of closing that lead are all but gone. The sobering truth is, less than 10% of companies are able to achieve this quick response time. If very few companies are meeting this stringent expectation, how is anyone closing leads? The answer is pretty simple—whoever reaches them first.
Your Conversion Odds Are Nearly 400% When You Respond In A Minute Or Less
We’re not exaggerating when we say that the society we live in today is about instant gratification, instant answers and the expectation of on-demand information from your sales staff. In fact, the odds that you convert a lead into a valid sale are at nearly 400% when you reply within a minute of their contact. Essentially, what we are saying based on the statistics—is the best time to reach your potential lead, is the moment their phone number hits your lead form—period. If the conversion is that good within the first minute, however, think about how conversely bad it is when you take over
five minutes to respond. It’s a phenomenal drop in odds—about an 80% drop to be brutally honest.
Our Own A/C Company Test
Studies of companies of varying sizes and scopes show that over half of companies in the studies took a whopping
FIVE DAYS or longer to respond to their leads they spent good money to get. Even worse is the fact that about 12% of those companies didn’t even respond at all.
Those are some pretty startling statistics and when you consider that most lead generation unless you are a huge corporation like Google or Microsoft—you aren’t getting those leads organically, you are paying a pretty penny on advertising. So, this is where the old adage comes into play—Time is money.
“Many advertisers think the answer is to spend more money to generate more leads, but in reality, the solution starts with improving your lead response time.” – Hector Garcia
To prove this point we did a test of our own by submitting an actual service request to 3 different HVAC companies. Here’s what we found:
- Company A: Called back in 10 Minutes
- Company B: Called back 6 hours later
- Company C: Never Called back
Can you guess which company we went with?
Most companies aren’t doing this intentionally. In fact, it all comes down a lack of resources and staffing.
Yes, it’s rather inconceivable to expect most businesses, outside of billion-dollar corporations; to have the manpower to dedicate to monitoring and responding effectively to every single lead that comes in within that very small window of time. So, how does a business accomplish such a daunting task that is larger than they have the staff for?
“Investing in the right process can save you time and a lot of money. Invest your money in your company instead of handing it over to Google or other marketing platforms.”
Change your habits, Change your pockets.
If you feel your organization needs to improve it’s lead conversion rates here are some quick tips that can dramatically change your business literally overnight.
- Know your data. Track your leads and inbound calls. If there’s a leak in your bucket you more likely will find it here. While each industry has it’s own conversion rates we would give 25% to 50% should be the industry standard on internet leads. If the numbers drop below 25% there’s an issue that should be investigating.
- 5-Minute Rule. Create an internal team rule that leads should be called within the first 5-minutes. Staffing can be an issue and many times we see the person(s) responsible for leads are typically occupied elsewhere. The dynamics of front-office can also play a factor in your conversion numbers. We suggest making “The 5-Minute Rule” an office policy and ensure the entire team is onboard (not just one person). Also, hiring a person full-time or part-time that’s dedicated only to inbound leads.
- Be Persistent. How are you nurturing your leads? Lead nurturing is also critical to your conversion rate. Rule of thumb is reach out at least 12x. This can be done by phone, email or text messaging. Understand that the consumer has a busy lifestyle and work around their times to best call.
For more help call us at BrandNation our main focus and priority is stated clearly in our motto, “Building Brands, Creating Leads.” In fulfilling that commitment, we double down heavily on the lead cultivation process which begins with creative and proven methods of lead generation and then responding to those leads with our rapid response team.
We are able to engage your leads because we study each and every client we serve. We get to know your industry, what drives you toward success, and the culture of your company. We then emulate that in how we communicate with and qualify leads for your sales team to close.
The amount of time we free up for your company and the amount of money we save you in capitalizing on opportunities that might otherwise be lost is where our value as the most dedicated digital marketing agency in Houston really stands out.
Stop missing out on opportunities and wasting money on leads you don’t have the manpower to give a timely response to. Contact one of our account advocates today and be on your way to the exponential growth in sales and brand recognition that BrandNation delivers for every one of our loyal clients.
