Given that we are talking financials this month, it wouldn’t be a financial discussion if we didn’t talk about leads. How many active leads do you have right now?
First, what is a lead? A lead is a potential customer; someone who is interested in buying your product or service. Whether you call them leads or potential customers, you must work on all things “leads” each day. From, “Where do I find more leads?” To “How do I follow up on my leads?” To “How do I keep losing leads and not converting them?” You are constantly having a conversation in your mind and with your team about leads. Why? Because leads turn into customers and customers generate your financial revenue.
Here is the key question we must talk through on this episode: “If I want to hit my financial target, how do I tie leads to revenue?”
If you read anything from Tony Robbins as I do, he says that only 5-15% of leads are “sales-ready” at a given time. In other words, of all the leads you are working, talking to, checking in on, etc., only about 10% will convert in a given day.
We can spend a significant amount of time talking about how to distinguish your leads and determine which phase they are currently in, but for today’s episode, let’s simply focus on the quantity of conversion. We must have a conversion to generate sales so let’s talk about how many active leads you need to be “working” in a given period to hit your revenue targets.
f we go with the average of 10%, how many leads will you need to be working with and convert each day to hit your financial target? If your goal is 10 new clients a week, you must have 100 new leads that week to work with. Not only that, you must have a process to follow up with all 100 of those active leads within that week in order to generate the 10 conversions. Let’s take this one step further, not only must you follow up, you must do so in a way that encourages your potential customer to take action.
In other words, simply sending a text that says “Are you ready?” probably isn’t going to get the conversion you want. The follow-up method you use is critical to hitting a 10% average. Otherwise, your average may go down to 5%, or even 1%.
Here is what I want you thinking about today:
1. Do you have a process to generate the number of leads you need to be working with on a weekly basis? If not, this could be a very clear reason why you aren’t hitting your financial targets. Either your target is too large for your current lead generation methods, OR, you need to invest more into lead gen. The decision is yours.
2. Do you have a method of follow-up that continues to build the relationship with that potential customer and encourages them to take the proper action? You could have leads but you may not be converting them effectively.
What is your lead gen strategy and how many leads do you need if you know the conversion is about 10% at a given time?
Solve that to move your business one step closer to your revenue targets.