Most marketers orient their efforts toward a few concrete, measurable goals. First and foremost, marketers work to generate leads, drawing potential customers and clients into the sales funnel. And while generating leads is important, it’s ultimately meaningless if those leads don’t convert into paying customers. Conversions are critical for enhancing the bottom line.
As such, few things frustrate marketers more than the realization that their campaign is generating ample leads but minimal sales. Fortunately, this is an issue that provides plenty of room for troubleshooting. In this post, we’ll review some of the most common reasons for a campaign that generates leads but not conversions. And we’ll present some solutions for fixing the problem.
5 Reasons Your Campaign Generates Leads, But Not Sales
1) Insufficient Follow-Through.
We’ve all had the experience of reaching out to a local business (say, a cable provider or a dental practice) to request a consultation or a service call, only to be met with total radio silence. When a customer service team fails to get back to you in a timely manner, it’s incredibly frustrating, and will naturally prompt you to take your business elsewhere.
The implications for marketers are clear. It’s critical to respond to leads as quickly as possible, definitely on the same day, preferably within the hour and ideally within minutes. Consistent follow-up is also important. While you may have reached back out, the customer may not be in a good place to respond. A multi-outreach communications plan will help ensure a higher level of success. There are a number of potential solutions that can help you ensure prompt and consistent follow-up, including online scheduling and live chat options, the use of lead management software, and having clearly defined lead follow-up goals.
2) Poor Customer Service.
A related issue is inadequate customer service. Statistics confirm that most customers are happy to pay more if they receive competent customer service. As such, if your business requires leads to interact with a customer service representative before finalizing their purchase, it’s critical that you roll out a red-carpet experience. Remember, if you don’t offer a high level of customer care, your leads may find a reason to take their business to one of your competitors.
In terms of solutions, there’s really no substitute for rigorous employee training, emphasizing high standards of empathy, helpfulness, and clarity in communication. It can also be helpful to record and analyze customer service calls, and to ensure that all customer service and sales reps are equipped with answers to the most asked customer questions.
3) Wariness About Spending.
Sometimes, the reason why your leads don’t convert actually has nothing to do with you or your business. It may have everything to do with broader economic uncertainties, prompting customers to be conservative about what they spend money on.
This is a difficult obstacle for any sales and marketing team to overcome, but there are a few sensible strategies that can help customers feel better about making a purchase. Discounts, promotions, and bundled deals can go a long way. Additionally, informative content can be an important avenue for explaining how your product or services address pain points and offer long-term value, making it worthwhile for customers to make a financial investment.
4) Misjudging the Sales Funnel.
Another possible issue is you’re trying to convert leads who aren’t low enough in the sales funnel. For example, a customer may still be in the research and brand awareness phase, meaning they need more information about your brand before they are ready to make a purchase.
The answer here is to improve lead nurturing. One good avenue for lead nurturing is through email marketing. Automated lead nurturing can provide potential customers with a steady stream of information, preparing them to feel confident in their purchase. Special offers can be used to further entice leads who are in a lower position in the sales funnel.
5) Bad Reputation.
A final reason for poor conversion rates is that your brand has a negative reputation, or simply doesn’t engender trust.
You can’t necessarily repair a bad reputation overnight, but there are some steps you can take toward rehabilitation. Managing online reviews, and working to generate positive feedback, is essential. Also be intentional about responding to negative reviews, extending prompt customer service. A strong online presence, including consistent social media content, can also be helpful for fortifying your online reputation.
Turn More Leads into Customers
There are many reasons why your lead generation efforts may fall short of conversions. The potential issues can range from poor customer service to inadequate follow-through, from miscalculations about your sales funnel to an overall poor online reputation. No matter the issue, there are some steps you can take to turn things around, boosting your conversion rate and improving your bottom line.
With questions about any of these solutions, we invite you to contact our team. We’re here to help you troubleshoot your marketing campaign and to assist you in getting your conversion rate back on track. Reach out to the enCOMPASS team whenever you’d like to chat.
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