Tough Economy Calls For A Lot More Product Sales Leads

In a recent article, I wrote about sales growth in the face of the economic recession. I explained how market share consolidates in downturns and how smart marketers increase rather than decrease their marketing efforts to actually grow sales and market share. Well, ‘guess I struck a nerve because I was flooded with suggestions and stories about how to do just that - grow in tough times. O.K., some of the suggestions were not so great, and some of them were technically illegal. But some of them were so good I decided to describe the 4 Best here:

1. Leverage your past successes. That is, use your own database of past clients and contacts to propel you forward. There are three ways that readers suggested doing this.

Get referrals - In his new book, The Referral Engine, John Jantsch describes how most companies fail to take advantage of their past by failing to ask for and use referrals. Advertising by personal referral and testimonial has always been effective and is even more so in today’s interconnected world.

Communicate more, not less - Don’t fall into the trap of cutting back on marketing communications during a downturn. It’s tempting, but not smart. Instead, find inexpensive ways to touch past clients. These are the ones who have already experienced your services and products. Get them to buy more and to buy again. It’s a great time to express your thanks, offer a special promotion or share useful information.

Improve your Database - This has a double benefi for you. First, you get a communication opportunity with past clients. That’s always good stuff, right? Second, you improve your marketing database to make you more effective in the future. Have your sales team greet your past clients with an offer of a new article, newsletter, notice of an event or new service, etc. Then, have them gather critical contact information like mailing address, alternate phone numbers, social media contacts, demographics like family size and purchase-readiness information. This one not only gets you an additional sales opportunity but makes you more effective in the future by improving your database.

2. 100% follow-up on trade show, promotion or seminar leads. All of us fall into the same trap - not doing a very good job of follow-up when we attend a large trade show or run a big promotion or attend a seminar and make tons of contacts. Often we let these opportunities slip away. Don’t!

You are in a recession, my friend, so that’s not good enough. Leads are precious now and you should use them effectively. One of our repeat customers recently hired us to make the initial follow-up call to hundreds of leads from his presence at a big trade show. We entered all of the leads into his database in just a few days and called/culled the list into 100 great warm leads for his sales team within a week!

3. Stop wasting your sales team’s time! This idea came from an internet marketer who had eight inside salespeople who spent half their time (his estimate) on very routine customer service support. Not good.

To relieve them of this non-productive work, he outsourced the first level customer service function. Now, callers are directed to an outsourced center with tools to answer questions about shipping/tracking numbers, estimated delivery times, price changes, returns and other things. The sales team is now charged with outbound calls to the company’s top customers.

4. Generate warm leads by cold calling a targeted list for prospects. We call this “suspects-to-prospects” and “prospects-to-appointments” calling. This is the type of effort I wrote about recently. This is a no-brainer. You and your team already know your best customers. Identifying these top customers and targeting lists of similar demographics can yield a boatload of real warm leads.

Growth always requires leads, in any economy. The best growth strategy starts with an abundance of leads so that your sales team can hone in on the best opportunities and deal with them confidentlynot like there’s a scarcity of additional opportunities. Cold calling (or cold contacting, as we call it) is an effective way to generate good leads. It always has been and always will be. It’s a critical step in the sales funnel - turning client “suspects” into actual prospects, worthy of your sales team efforts.

Keep the lead pipeline full. Keep your top salespeople focused on the best real opportunities for success. That’s a growth strategy for ANY economy! Try some, or all of these ideas to gain market share and grow NOW.

Visit MultiMedia Spectrum for Appointment Setting Services and Business to Business Telemarketing.

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Track Conversion Rates and Meet Your Sales Goals

Do you know the number of leads you need to generate to reach your income goals? While this may seem like an easy question, not a lot of people can come up with the number.

There are two things to consider regarding this question. First, there are your expenses. You should make sure to have an accounting program advanced enough to help you analyze your costs and how they relate to your profitability.

Second, you need to know how well you are able to turn your prospects into sales (conversion rate). The more efficient you are at converting leads, the more income you will be able to make.

Let’s take a look at the process more closely:

The first step is to determine your monthly sales goal. For our example, let’s say you want to make $100,000 in sales a month.

The next step is to work out what your conversion rates are. In order to keep this example easy, suppose that all of your leads come from your website.

Assume that you are able to convert 2.5 visitors into sales for every 1000 visitors to your website. Your conversion rate is .25%.

Here is a formula to calculate the number of visitors your would need to meet your monthly sales goals. Let’s assume every conversion will actually purchase from you in order to keep it easy.

(Desired Sales / Sale Price / Conversion Rate) X 100

Therefore, if you have a $20 average sales price, a conversion rate of .25%, and you want to achieve sales of $100,000, your calculation would look like:

($100,000 / $20 / .25) X 100 = 2,000,000 visitors needed per month to achieve your sales goal.

Ouch! That’s a lot of visitors!

Not to worry, there are things that can be adjusted. The average price can increase. Your can improve your conversion rate or you can multiply visitors.

Most find the easiest fix is to improve conversion rate. By testing various options and changes, it is possible to improve a .25% conversion to about 2%.

Let’s look at the difference that would make using the formula:

($100,000 / $20 / 2) X 100 = 250,000 visitors per month to achieve your sales goal.

That’s a nice change!

You can improve things even more by raising your average sale to $47:

($100,000 / $47 / 2) X 100 = 106,383 visitors per month to achieve your sales goal.

If you are like most, you would rather make smart changes to improve your sales success rather than work harder. Hopefully these examples drive home the importance of planning the leads you will need to reach your sales goals, and testing the factors you can change to become more efficient.

Marty Dickinson has been an small business owner and founder of HereNextYear.com for over a decade, and loves to share small business success techniques with other business owners. Claim your free report: “7 Ways Your Stone-Age Accounting System is Stealing Money From You Every Day … And, How to Get it Back This Year” and learn about an online accounting program that makes it easy to track your conversion rates.

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