Do you know your Lost Revenue per Lead (LRL)?
We have a calculator that will show you, but more about that in a second.
If you’ve been part of any customer acquisition program (your company or someone else’s) you’ve been faced with the challenge of minimizing cost of customer acquisition and maximize sales close rates. Oh, and don’t forget we want the good customers, not the unprofitable ones.
If this is your existence, well I understand your challenge.
Unfortunately, many of the folks you’ll be reporting results to won’t understand. Every customer acquisition ninja understands the top of the funnel, middle, and bottom or “closed”. The lifeblood of the organization is the lead, which enters at the top of the funnel and ideally progresses in as short a period of time through to the bottom of the funnel – as a closed customer. Leads however are really difficult to not only quantify but to ensure they are actually acted on.
According to a report by Lean Data a stunning 73% of digital leads are not acted on by a sales agent. 73%. That’s insane! So think about being in a meeting and explaining to the CEO that although your marketing team is generating leads and interest into the top of the funnel, your sales team isn’t acting on them. Indeed.com say hello to your newest job seeker.
We’ve noticed a rather common thread in the companies who use Lead Assign – pre Lead Assign the top of their funnel is a black hole and not a funnel! For definition sake a lead is any business or consumer that has taken the time to provide you with their contact information by filling out a form, an interactive ad, etc. This lead, regardless of where it originated, will typically end up in an email in-box somewhere in the organization and subject to the human that is the “lead router”. This is where the 73% comes in. It is missed, routed incorrectly or not acted on at all. Further, if a lead is acted on in under 5 minutes according to Lean Data the likelihood of the lead progressing through the funnel to a closed customer is 900% greater.
Most companies would stretch the ability of the human lead router in short order.
Why am I so focused on understanding the top of the funnel first rather than the middle or bottom? It’s simple – without understanding, tracking and acting on the lead when it is originated and in as little time as possible the rest of the funnel is more or less meaningless. To put it in even simpler terms: reduce your CPC (cost per customer) by a factor of 4 and increase your close rates an order of magnitude by focusing on truly managing the top of the lead funnel.
Now to the calculator I mentioned above. Our simple calculator will give you an idea of the LRL that you may be experiencing. A result approaching $0 means you are in great shape and a Lead Assign customer already.
Lead Assign is used by leading companies to solve the pressing issue of ensuring sales teams and partner teams can act on digital leads in a timely and effective manner.
When someone fills out a form on your website, or responds to an ad about your service, the first step in a perfect customer journey is to make sure the customer is contacted by a qualified salesperson.