Customer acquisition can be a painful process for most of the companies. That’s because it costs them a lot to acquire one customer. One way to reduce the acquisition costs is to increase conversions.
Rather than converting only one customer out of ten thousand, you should have a powerful strategy that lets you convert more. You cannot blame your customer for low conversions or the marketing tools you use. At the end of the day, there is some flaw in your strategy that is causing your customers to slip through the cracks.
Reasons Your Leads Aren’t Converting
1. Your Response Time Is Bad
One of the major reasons for slow conversion rate is slow response time. When you don’t respond to your leads quickly, you increase the chance of them going to one of your competitors for business. A recent study showed that responding immediately to leads can improve your results by 314%. Similarly, a study named The Short Life of Online Sales Leads by Harvard Business Review showed that a business that contacts a lead within an hour of inquiry is 60 times more likely to convert than a business that contacts its leads after 24 hours.
2. You Don’t Personalize Your Communications
Personalization is more important than you might realize. It converts and statistics have proved it over and over. Statistics show that 79% of customers prefer doing business with companies that personalize their offerings for customers. In addition to that, 78% of customers say that when they receive content that is relevant to their interests, they want purchase from that business.
3. Lack of Product Knowledge
You can’t expect your sales people to not have product knowledge. But, product knowledge doesn’t always mean the knowledge of the product per se. What knowledge refers to here is how you connect the needs of the customers to the benefits of your products. You need data on customer behavior, past purchases, recent website visits etc. to be able to convert your product features into benefits. When you don’t do that, you don’t convert.
4. Bring in Sales and Marketing Hybrids
The best solution to all of the problems stated above is introducing sales and marketing hybrids in your company. These are the individuals who have passion for sales and understanding of marketing. They are like double-edged swords that are as good in marketing the product as they are in selling it. The delay in lead response time is often a result of the distanced sales and marketing teams. When data takes time to move from marketing to sales, lead responses delay too. However, when the seller and marketer is the same person, no such delays can occur. Avoiding delays are more crucial than ever to prevent distractions or other competitors knocking on the same door. The winning team is the sales team that has the data from conversion onwards all the way to a deal signed. Log on to Oneflow.com for more interesting information in this regard.
You can watch this interview of Sara Larsen, Vainu’s business development head, to know what sales and marketing hybrids are and why companies need them today. The issue of personalization can be resolved with a data-driven approach. Product knowledge will comes from sales enablement techniques. Lead time improvement is a result of combining sales and marketing in one place. It might be a new concept today, but it definitely holds the potential to become a standard in the coming times.