This should be the aim of every business, especially startups, to make more sales, attracting and convincing potential customers to go for the purchase. Same goes for web based businesses which deal heavily on traffic. There are potential customers who are out there circling, making researches on businesses they intend to patronize. These potential customers are seen as leads, and could be cold, warm or hot depending on their potential to patronize your business. Lead nurturing is a process, and it involves building relationships with qualified prospects by sending targeted messages.
You probably would want to know why you should invest in lead nurturing in the first place, so as to determine if it is a profitable venture or not.
Why you need to invest in lead nurturing?
Studies have shown that about the number of qualified leads are not ready to buy something from you. With lead nurturing, however, you can effectively turn this around and make sales. Right messaging is crucial in order to nurture leads effectively.
The benefits include thus:
- Increase sales-ready leads
- Reduce cost per lead
- Lower ignored or discarded leads
- Increase sales quota achievement
- Reduce the rate of “no decisions”
Customers are looking out for credible businesses, and you can show them that you are so by providing them with relevant information. Once you project the credibility image, it is easier for the buyers to believe that your company understands their problems and can help them solve the problems. This will make them less fearful, and more willing to do business with you.
Nurtured leads usually gives over two times conversion rate than non-nurtured leads. If out of 500 leads you have a non-nurtured conversion rate of 2%, which would yield 10 sales-ready yields. With a typical conversion rate that is over two times (say 2.8) that of non-nurtured leads, for actually nurtured ones, you have 28 sales-ready leads. That is an increase of 18 sales ready leads.
With a monthly marketing budget of $5,000, and the intention of spending 10% on lead nurturing, that means spending $500 on lead nurturing. Dividing by number of sales-ready leads give cost per lead of $17.86.
With same budget, the cost per lead without nurturing becomes $5,000 divided by 10. This yields a cost per lead of $500. Which is in no way good for business compared to nurtured leads. Then question that begs asking is, why not invest in lead nurturing?
Despite the obvious benefits of lead nurturing, not many marketers nurture their sales lead. This means the opportunity for you to implement lead nurturing strategies and again market advantage over competition is there. This is the reason why you should invest in lead nurturing. From a business angle, it aims to improve sales, which is welcoming to any business.
It is quite unfortunate that companies tend to ignore leads that are not ready to buy right away. The idea behind nurturing a lead is that you can’t force a prospect to buy, but you also can’t afford to lose one because their will to buy and yours to sell do not agree.