When is Advertising Not the Answer?
Every business hits a stagnant time or even a decline. When that happens, oftentimes, our first instinct is to up our marketing budget to get in front of more people and increase leads. This might be a good solution. However, the answer may be that our advertising budget is fine, but you have an operational disconnect.
So where is this disconnect? Many times, it’s in the conversion process (a.k.a. your internal sales process). You can put a lot of money towards marketing and lead generation, but if you can’t convert and close, those are wasted marketing dollars. Or you can have an excellent close rate, but you aren’t servicing them well or your product isn’t what they need so they are walking right out your back door.
Follow these tips to identify if you have a disconnect and, if so, how to close the gap.
- Track the process. You can’t improve what you don’t know. This is the most important thing you can do to determine where there may be a disconnect. Depending on your business and goals, you should be tracking your key performance indicators (KPIs), which could include: total inquiries, appointments/registrations/enrollments, new customers, customers that left and any other pertinent information to your goals and revenue. This should be done at least monthly.
- Analyze the numbers. Once you have a few months of tracking, it’s time to review the numbers. Do you have a lot of leads, but hardly any conversions to new customers? If so, then your disconnect is in your internal sales process. Do you have a high closing rate but just not enough leads? If so, then your disconnect is marketing related.
- Process improvement. If your disconnect is in your internal sales process, it’s time to review your internal processes and improve. Who is responsible for follow-up? What is that follow-up? A phone call, email? How far apart? Arm your sales team with a process for nurturing and converting leads. If your disconnect is not enough leads, but high conversion, then it’s time to look at your marketing dollars and expand reach.
Once you’ve completed the above three steps, it’s important to have a quarterly review to see if those process improvements are helping you head in the right direction.
To learn more about our services and how we can help you close the gap, contact us today.