In our previous article, "Why lead nurturing is essential for your franchise" we explored the concept of lead nurturing and its overall process. Now, we'll delve into the significance of this practice and why it's crucial for your business to have a well-defined lead nurturing plan.
Generation Doesn’t Equal Conversion - The Numbers Don’t Lie
Generation alone will not guarantee conversion, and the numbers reveal the truth. According to a recent study by FranConnect, three out of every four franchisors fail to reach out to their leads within the first four hours of their expressed interest. Staggeringly almost 70% of leads never receive a call back, and nearly half of all leads fall out of the sales funnel due to lack of response.
These findings emphasize the importance of looking beyond lead generation and also recognizing the critical task of nurturing leads after they enter your inbox. Neglecting lead nurturing can lead to adverse consequences, such as declining bottom lines.
Is Lead Nurturing Worth the Effort?The answer to whether lead nurturing is worth the time and effort is a resounding "yes." If your business receives a high volume of leads, you might worry about overwhelming your sales staff with the task of nurturing each lead. However, considering the essential role lead nurturing plays in closing deals, can you afford not to dedicate sufficient time to it?
The good news is that lead nurturing doesn't require as much time as you may think.
Automation Can Be Your New Best Friend
Onboarding a new franchisee always requires time and energy and that is how it should be.
However, when it comes to initial leads though, some of the more repetitive, boring tasks involved in nurturing can be automated. In fact, you really should already be doing it this way.
However, it's important not to bombard new contacts with irrelevant information. Initial contact with the prospective franchisee should provide useful information such as timelines, FAQs, and other relevant resources. Automating lead nurturing allows for a well-thought-out strategy that effectively connects with leads throughout the customer lifecycle.
As the Salesforce’s eBook, The Complete Guide to Lead Nurturing, puts it: “There are only so many hours in the day, so the answer is to automate — very purposefully. A well-thought-out lead nurturing strategy is one way that you can connect more effectively across all phases of the customer life-cycle. At its core, lead nurturing is the process of automatically “dripping” relevant messages to your leads over time.”
Lead Nurturing Lead Nurturing in Asia
Here are five reasons why lead nurturing is important:
Less leads needed for a sale:
Neglecting lead nurturing means requiring more leads to achieve a sale, resulting in additional costs. Engaging in lead nurturing helps guide leads through the sales process more effectively.
Improved business relationships:
Regular contact with leads allows you to understand their needs and provide the necessary information for a strong business relationship, resulting in an informed franchisee and improved rapport.
Quality PR:
Effective lead nurturing builds a client base that can contribute to positive word-of-mouth marketing, enhancing your business's reputation and credibility.
Upselling:
Through lead nurturing, you can maintain engagement with potential investors, understand their aspirations, and potentially upsell to match their goals. It also helps identify key questions potential partners have about your business.
More informed data:
Quality automated systems collect valuable data on click-through rates, open rates, and more. This data informs your sales and content marketing teams about the most effective initial contact and follow-up strategies.
These are but just a few reasons that highlight the importance of lead nurturing, and there are many more benefits to consider.
To emphasise its importance, we can finish with data from Marketing Sherpa that shows companies excelling at lead nurturing generate 50% more sales at a third of the cost. Therefore, a well-planned and intelligent lead nurturing strategy should be a fundamental component of your business, both now and in the future.