Business Spend Millions On Advertising
Businesses every year spend tens of millions of dollars on advertising to drive walk-in, phone up and internet to their stores. But most business don’t even count, log or analyses this expensive traffic and only have a vague idea of how many actual sales leads are being captured and what the real cost per bonafide lead and sale is, or what any of their conversions are.
As a Business Coach, I work with a lot of businesses across the country, most claim they convert at 50, 60, or 70% some have claimed higher. But when proper accurate accounting is done most realize two things. 1. They can’t correlate all their traffic to leads logged in their CRM and 2. Their salespeople are only converting at a rate of 15% or less. In short, they are bleeding money and didn’t know it, or blamed it on a bad economy.
Here is a list of 10+ critical pieces of information that is missing on a basic level:
- How much traffic do you get in a day, week or month?
- Where did the traffic come from?
- How much of the traffic was captured as leads?
- Who took the leads?
- What happened? What was the outcome?
- What information was captured?
- Are they being followed up on?
- How often? Is there a follow-up process?
- What are your conversion rates & established metrics?
- Who is responsible for managing this
Do you see any that are missing in your business? Copy the list and start working on 2 or 3 of them you think are important. If you have any questions give me a call. 780 699-9383.
Now if businesses had this information they could use it to measure the true performance of their sales teams and marketing efforts, they could find out where they can improve and grow and what is going well so that they can continue and expand on. They could trim their expenses and invest where it counts. They could create a business model that is more sustainable and efficient, with better insights and easier to manage. Their business could be predictable.
But most don’t.
Most businesses only count the sales and use this as their main or only measurement to evaluate success and to reward the top performers in hopes it will keep them motivated and motivate the rest staff to do better. But it doesn’t seem to work either, as employee turnover is very high in most sales-centric businesses. Business Development is not just about marketing and generating more traffic and new leads it is also about getting more out of what you already have. It’s about getting your money’s worth out of your marketing dollar. It’s also about managing your existing leads to get a higher return on time and money.
Client acquisition is challenging, it’s expensive and it’s time-consuming. If businesses are not measuring and managing their sales/business leads accurately, and striving to increase their conversions then they are wasting money, leaving money on the table, bleeding money, or what every euphemism you want to use, and in this day and age that can be catastrophic.
Business is very competitive and getting harder to grow using a legacy mindset. We need to get more out of what we already got and use technology along with a higher level of personal business skills to get us to where we want to be.
Business Coaching can help you. Contact me for a Complimentary Coaching Session and let me show you how.
Thanks for reading,
To your Growth, Profit, and Freedom.
BTW watch for my next article; It will be about Business Development and the human component.