Buying leads is a widely used marketing strategy, but its effectiveness goes beyond the initial cost per lead. Many businesses overlook the “second life” of leads, missing out on valuable opportunities to nurture them into long-term customers. This approach maximizes your return on investment (ROI) and fosters a loyal client base.
Shifting Focus: Cost-per-Job Paints a Clearer Picture
While cost-per-lead provides a starting point, a more insightful metric is cost-per-job. This metric takes into account the total revenue generated from leads, offering a clearer picture of your marketing spend’s efficiency.
Imagine a billboard with 5,000 daily viewers, generating five calls and six jobs completed. One customer might have called back for additional work. Analyzing only cost-per-lead wouldn’t reveal the full picture. By calculating cost-per-job, you can determine if the billboard is a financially rewarding advertising avenue.
The same principle applies to lead generation. A lead might not convert immediately, but with proper nurturing, it can still yield future business.
Investing in the “Second Life”: Nurturing Leads for Long-Term Value
A recent conversation with a ReDo member highlighted the importance of cultivating the “second life” of leads. This successful contractor shared his strategy for maximizing the value of leads, even those that don’t initially convert into jobs.
The Power of a Strategic Follow-Up:
- Prompt Contact: This contractor prioritizes immediate contact upon receiving a lead. This establishes responsiveness and demonstrates a genuine interest in the project.
- Persistent Follow-Up (with Courtesy): He follows up several times within the same week, striking a balance between persistence and politeness. The goal is to discuss the project, answer questions, and schedule an estimate. Even if an estimate isn’t scheduled, express appreciation for the homeowner’s time.
- Offering Additional Value: Go beyond the immediate project. Offer to answer future questions and even review bids from other contractors for accuracy. This positions you as a trusted resource and advisor.
- Future Nurturing: Consider including leads in segmented email marketing campaigns tailored to their specific needs. Offer helpful content, industry insights, and special promotions. Create calendar reminders for future follow-ups to inquire about project completion, address any lingering questions, and reiterate your willingness to assist.
Turning “No” into Opportunity: A Real-World Example
This contractor’s strategy goes beyond theory. He secured a project from a lead that he initially didn’t win. By following his follow-up process, he was chosen to fix mistakes made by another contractor. The homeowner’s positive experience with his work ethic and customer service led to them hiring him again for additional projects, generating a total of $20,000 in revenue from a single lead.
The Key Takeaway: Maximize Lead Potential
Leads have the potential for a long-lasting, fruitful relationship if nurtured from the outset. Don’t abandon a lead after an initial rejection. Develop a follow-up system that aligns with your company culture and resources. Consider segmenting leads based on their needs and interests, and personalize your communication accordingly. By investing time and effort into lead nurturing, you can transform them into loyal, long-term customers who contribute significantly to your business success.
Beyond the Basics: Additional Strategies for Lead Nurturing
Here are some additional strategies to consider as you refine your lead nurturing process:
- Personalization Matters: Personalize your communication whenever possible. Address leads by name and reference their specific project or inquiry. This creates a stronger connection and demonstrates that you care about their individual needs.
- Leverage Social Media: Social media platforms offer valuable opportunities to connect with potential customers and nurture leads. Use these platforms to share informative content, showcase your expertise, and engage in conversations.
- Provide Valuable Content: Offer informative content such as blog posts, articles, or videos that address common challenges faced by your target audience. This establishes you as a thought leader in the industry and positions you as a trusted resource.
- Utilize Email Marketing Automation: Consider email marketing automation tools to streamline your communication and ensure consistent lead nurturing. These tools allow you to schedule email sequences tailored to different lead stages.
By implementing these strategies, you can cultivate the “second life” of your leads, fostering stronger relationships and maximizing your return on investment in lead generation efforts. Remember, building lasting customer relationships is key to achieving long-term success in today’s competitive marketplace.
