Do You Know Your Lead Generation Numbers?

Want to fully understand the lead generation side of your business today?

Ok, so just imagine,
Works a bit slow and you want to throw £100 at some paid adverts to drum up some enquiries into your business.

How do you know if the £100 is going to be enough?

How do you know if the £100 is even working hard for you?
Do you know how to track your leads? What the cost of acquiring anew client is for your business etc etc?

There is the shoot in the dark, fling some money at the problem approach, and let fate decide if your strategy works or fails.

And then there is the smart way to run a business.

As SME’s ourselves, we understand the nightmares that can come with running a business. It’s not all fun and games all the time. Running a business is hard, but getting it right is even harder.

Knowing your numbers and tracking and tracing your efforts to know what does work for you as a strategy so you can rinse and repeat as often as needed, and on the flip side, knowing what doesn’t work, to avoid washing your hard earned cash down the drain for nothing!

It doesn’t take a mathematician in order to understand where you are as a business financially. You’ll soon be able to enjoy relaxing nights, spending them how you wish, whilst in peace knowing that your business is doing absolutely fine without your 24/7 attention.

McCall Media want to help you put together a lead generation funnel, which will help you, as a small business owner, understand your numbers and how to decide on a strategy that works well for you.

To learn more about sales funnels watch our YouTube video, or read our blog article here.

An investment in your future

Knowing your sales funnel approach will determine how many steps your business operates on a particular lead generation strategy, from cold prospective client enquiry to hot client sale.

Taking the step to acknowledge your business operations starts with our 5 step formula to success. If you follow this correctly, you’ll be running your business with confidence, knowing you understand how much you need for your business to operate comfortably. Tailoring the process to your type of work will allow you to generate quality leads, know exactly what you need to spend and what you get out of the whole process itself. Lets dive into some specifics.

Creating a Paid Advertising Campaign

Step 1 of our lead generation 1:10 ratio funnel

So in the example below, we use a lead generation approach to entice prospects into a sales call using 5 steps from initial contact to sale.

Having never run this campaign before, you wont necessarily know the ratio of leads to sales you will need to generate at each step of the funnel to make a e a single sale.

Working through your lead generation ratios for the first time is difficult, lets be honest. You probably don’t know where to start because you’re unsure on what your numbers are. Don’t fret. We are on your side.

To start campaigns off with, work on the theory of 1:10 but the goal is to heavily reduce the ratio 1:2 etc…. We’ve provided you with a blanket concept to start this theory with.

Think about how much this is going to cost you, what you are providing your clients with, and what your going to get out of this.

Testing what works and what doesn’t is important in this stage. Each ad costs money, so you’ll need to have a budget based on how successful you think it’s going to be, and how many prospects will take action.

Lets base it around a 1:10 ratio. Say you put out a paid advertising campaign on peoples social media profiles to to 10,000 people. If it costs you, as a business, £1 per every ad click, you’ll need to have a marketing budget of £1000 to secure 1 sale. Questions to ask yourself:

• Do you have that money right now?

• How are you going to make that money?

• Is that money worth spending in your business?

1:10 lead generation funnel

Take a look into your landing page visitors

STEP 2 OF OUR LEAD GENERATION 1:10 RATIO FUNNEL

For you to make 1 sale, on a 1:10 ratio, you would need 1000 people visiting your landing page to generate click-throughs. As you can see, the number has severely decreased from the 10,000 people who viewed your landing page. This is just how landing sales works.

Applications onto your programs

STEP 3 OF OUR LEAD GENERATION 1:10 RATIO FUNNEL

From the 1000 people who viewed your landing page, 100 of these will fill out your forms and apply to be part of your mailing list (based on our 1:10 ratio). It doesn’t seem like much, but having 100 new, quality, warm prospects on your mailing list could do tremendous amounts for your business.

Think about it. If they are benefiting from one of your services or products, why wouldn’t they benefit from some of the others? Having these people in your mailing list gives you the chance to advertise and promote your other products. This helps generate further sales, and potentially building better relationships with more of your customers.

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Contact with your new clients

STEP 4 OF OUR LEAD GENERATION 1:10 RATIO FUNNEL

If you’ve managed to get this far, it means that you have 100 new and fantastic people in your mailing list. If you were to send out email on a regular basis, roughly 10 of these should book into your diary for a meeting or call if they are that interested in your offerings. Yes, we know, its a tough process to get clients through the whole funnel. You’ve been in the customers shoes before, so you should understand how nervous we can get when making a purchase.

Try reducing the amount of layers in your step by step process! After some testing and moving about, you’ll eventually make it as easy as possible for you as a business owner, to make as much profit as possible, whilst building quality relationships with new customers. Carry on with this structure for now, the 1:10 ratio is just a start. Bear with us…

Each and every sale counts!

STEP 5 OF OUR LEAD GENERATION 1:10 RATIO FUNNEL

The sale value must be greater than your ad budget. An example with our 1:10 ratio. If it costs you £1000 to run a campaign, your product needs to be this price, or more. This is if you want to cover the costs and gain a profit from it, after all. For the 10 people who booked in to talk to you, you’ll only gain 1 sale.

Did we mention already that this is quite a tough and tiring process? But, once you’ve got through these hard initial stages, you are set for the whole future of your business. Just to let you know, McCall Media are always here to offer advice and support throughout the whole process.

Tailoring the 5-Tier Financial Funnel to You

Reality is that your ratios will be far better then this, in real life, especially if you’ve our team working with you to assist on your strategy and execution.

Your goal for the whole journey is to try and reduce the ratio we’ve given you every time you work on your lead generation campaign.

Here’s an example for you. If this funnel was to involve an email open rate, you could probably check your email marketing software right now and gain knowledge on your companies average open rate. So e.g. 20% open rate would make this a 1:5 ratio.

The goal is to ensure your lead generation funnel involves the fewest steps/layers/tiers as possible. That every step if the funnel is working with the most efficient ratio possible and that your cost per advert click is the smallest amount you can get it to achieve your results.

So in the example above, your £100 ad spend wouldn’t be nearly enough. However, if your business could operate at a 1:5 ratio at every step then this would be a £500 needed budget, and if your funnel involved less steps, then your £100 could well be enough.

But without analyzing your strategy and approach, you are simply guessing.
When you know your numbers, it can even help you strategise the fee’s you charge for your services, knowing your client acquisition cost and process.

When you repeat this process for a second time, you’ve then got your own results from the first campaign to populate your ratios for, and there for you don’t need to build a campaign on this blanket approach, you’ve quality info to see where you are going well and not.

We are only starting you with our 1:10 ratio now because you are an SME who doesn’t have anything else to go from.

The other benefit for operating this way is to see if your ratios are improving or deteriorating at each step with each campaign, as any tweaks to the process (eg you change your copy on your landing page resulting in more applications) is a tweak that has been beneficial or not.

Our goals for you are as follows:

  1. Reduce the ration at every step in your lead generation funnel.
  2. Reduce the cost-per-click on your paid advertising campaigns.
  3. Aim for the minimum amount of layers in your process as possible.

Summary: Know Your Numbers!

Step 1: How Many Steps in Your Lead Generation Process.

Step 2: Workout your Ratios To use a Blanket 1:10 to start With.

Step 3: Improve your Cost Per Click.

Step 4 If you know your business is selling a service at £2000 and you need 5 new sales, your campaign needs to have 5 times the budget as the above examples are all about generating the single sale.

Free info graphic containing all of this information – simplified!

We have some great resources that will aid you in getting to the lowest ratio possible, in order to get the most out of your paid advertising campaign! Even better, we have created an info graphic we think will be extremely beneficial in this process, within the McCall Media Club House.

Simply create a free login, gain your guest pass, which only takes a minute, and you will be able to find your free resources, helping you reap all the benefits we have mentioned in this article.

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