Leads are expensive, and the typical sales manager does not have accurate and readily available call metrics.
How are you maximizing conversion rates? Can you provide a clear picture of the number of contact attempts sales agents are making on each lead? Chances are, your sales team is not making enough attempts to maximize contact and conversion rates. This lack of visibility means that valuable sales leads are being wasted.
Too often, call cenres managers underestimate the value of persistence. In a recent analysis of over 15 million sales leads, marketers discovered that making 2 calls versus just 1, increases the chances of contacting a lead by 87%. The same study revealed that a disappointing 50% of leads are never called a 2nd time.
Your prospects are both busy and cautious, and more than 60% of contactable leads will not be reached on the first contact attempt. The most successful sales and marketing teams know this and keep a close eye on their return on investment (ROI), by tracking key metrics like call attempts.
The research found that attempting contact 6 times resulted in nearly the maximum possible contact rate, yet nearly 60% of sales people made less than 6 contact attempts.
Lead To Call Case Study
This new study, derived from the data of several million Internet-generated leads, breaks new ground by proving that the importance of speed-to-call in the sales process has a dramatic role in determining lead conversion rates. Speed-to-call was found to be the single largest driver of lead conversion in the first 2 minutes after the lead was generated. In fact, responding to leads within 1 minute resulted in a 391% improvement. Additionally, after missing the critical initial time window of the first couple minutes, calling within the first 30 minutes was found to increase conversion rates by an average of 62%, and calling within 1 hour was found to improve conversion by an average of 36%.
Prior data analysis and research from unaliated third parties, has shown the critical importance of speed to call, minimizing the time before an initial call attempt is made, in improving lead qualication rates for consumer, facing organizations that rely on a consultative sales process. These findings have encouraged sophisticated buyers and sellers of Internet leads to emphasize speed-to-call in the process of contacting and qualifying leads.
In 2009 the importance of speed to call and response time was widely accepted amongst forward-thinking business-to-consumer organizations, including financial institutions, insurance carriers, and higher education providers. However, some authorities believe that truly motivated and qualied consumers would be less sensitive to responsiveness. Our study proves the opposite; speed to call is a primary driver of lead conversion.
Based on the correlation between speed and qualication alone, one cannot say with certainty that a qualified lead will eventually convertand generate revenue. From an organizational standpoint, the only factor that really matters is whether consumer leads convert at high enough rates to justify the cost of buying (or generating) those leads. The customer acquisition cost must justify the life time value, and acquisition costs are heavily influenced by lead conversion rates.
This study reveals that organizations able to respond the fastest to consumers, have a nearly in surmountable conversion advantage versus those that are not. To achieve this advantage, it is necessary to ensure that every lead not called under 2 minutes, will at least be called within 30 to 60 minutes.
- Leads called under 60 seconds showed an astounding 391% improvement over average conversion rates.
- Leads called between 60 and 120 seconds after they were generated converted 160% more often than the average.
If leads cannot be reached within the first few minutes, attempting contact quickly is still valuable. The study indicates that leads called within 24 hours are still 17% more likely to convert than those that are not.
88% of all leads that eventually convert were called within the first 24 hours. This does not imply that leads convert within 24 hours, but establishing the relationship at this juncture is critical to conversion, days, weeks, or months down the line.
These findings echo previous MIT lead response research, but place more emphasis on speed to call. The data also suggests that the advantage due to speed is less signifcant after the rest 2 minutes have elapsed and is greatly reduced after the first hour.
Consumers typically listen most attentively to the first caller, and therefore build the strongest rapport. This does not imply a first call close, but initiating the rest call remains a strong driver of eventual lead conversion. Research shows that even though the consumer may go price shopping, a sense of ‘loyalty’ drives them back to the vendor who called them first. By initially providing consumers with education and responsive customer service, smart companies are able to create strong social and psychological bonds that tend to override competing offers.
In today’s marketplace, consumers tend to think that most products requiring a consultative sale have fairly good substitutes. For example, home loan insurance policies, and higher education degrees can all be provided by thousands of national competitors. Reducing friction for consumers in the sales process,including response time and the number of inquiries needed to find the desired product, is benecial to the consumer experience, and pays dividends for both organizations and consumers.
Click here to read the Erez Atia – Rates Direct Case Study