There is 1 small question that when implemented effectively can:
- Save you money
- Improve your lead generation
- Help you win more sales
So what’s the question?
Where did you hear about us?
That’s it. The question everyone should ask of their customers.
What happens next is where the magic is found
You’ve asked the question but how does it help you? What you do with this golden nugget of information will make the difference of winning more sales or wasting more money.
Let me explain…
So what are your customers telling you?
Almost every business owner I have ever spoken to believes they have a good grasp of what works for their business. And most of them do, at least in part. I hear phrases like
“I always get enquiries from my adverts”
“I can’t stop my email campaigns else my enquiries will dry up”
“My website works pretty well, I had a call just yesterday”
“We’ve always advertised in ABC monthly, all our customers read it”
So I ask them to tell me how much business, in £’s, they generated as a result of a specific piece of marketing, say an advert in last week’s newspaper.
Things usually go a little quiet at this point. This is where the value is.
When is enough, enough?
So if you know your adverts generate business leads can you work out how many, exactly? When you know how many you have can you then calculate how many sales (in £’s) you made as a result?
Having this granular detail gives you the control to spend your money on the most effective marketing.
Is this enough?
Terry is a solicitor, he runs a small local legal practice. Most of his clients are local businesses looking for efficient friendly advice. Each week Terry spends £150 on Google AdWords and £125 on a small newspaper advert.
Current he is generating 7 or 8 leads per week, roughly 2 of these go on to be customers. He’s wasn’t sure where they were coming from, so he put the simplest system in place. A pad and pen by the telephone. The whole team know that if they pick up a call from a new prospect they ask ‘where did you hear about us’ and write the person’s name and their answer on the pad.
What did Terry learn?
After a month Terry reviewed the results. He added to the telephone list the details of all email enquiries he received through his website. Then he added a column to show which of the enquiries had converted into a new client.
- He discovered that his AdWords ads generated more enquiries.
- He discovered that his newspaper adverts had a higher conversion rate.
So how does this help?
Let’s keep the maths simple. Lets say in 1 month Terry generated 20 leads from AdWords and 10 leads from the newspaper. Half of the newspaper adverts converted (so a 50% conversion rate). Just 1 in 5 of the AdWords enquiries converted (so a 20% conversion rate).
|Source||Enquiries Recevied||Conversion Rate||New Clients||Cost of Advertising||Acquisition Cost per Client|
There are lots of things Terry can learn from this:
- Both sources are generating good leads
- The newspaper adverts have a lower acquisition cost, Terry could consider testing a new larger advert to see if he can improve the number of leads generated without reducing the conversion rate
- The AdWords campaign is generating enquiries but he could adjust it to see if he can get fewer, higher quality leads
- He is spending time fielding enquiries from AdWords that are less likely to convert
A lot of information from 1 small question
Terry is a fictional character, but I know from working with a variety of businesses, large and small that this is the number 1 way to save money on ineffective marketing.
Start now. Ask the question and record the answers. If you need some help analysing the results give us a call.
By investing your money in the best performing tactics you will generate more, higher quality leads than ever before.