If you use advertising or marketing to promote your business, you’re probably aware that response rates tend to be rather low with many types of advertising. Ten percent is a good response rate, but five percent is more realistic. And with the average close rate at around one percent, only a small percentage of leads are converted. That’s why small-business owners should focus not just on advertising and marketing but on following up on leads. After all, your advertising and marketing just gets people’s attention; convincing clients to actually work with you is the hard part.
Do you have a follow-up system?
I’ve talked with many business owners who assume the most important thing about marketing is a large advertising budget. But while advertising is good, more money does not necessarily equal more clients. If you advertise to 100 people and get 20 clients out of it, this is obviously much better than advertising to 1,000 people and only getting 10 clients out of it. So, this raises the big question: What can you do to increase the effectiveness of your advertising?
The key is to have a good follow-up system. One of the things I always emphasize to my clients is that they need to keep reaching out to prospects. On average, a client won’t buy from you until you’ve reached out to them seven to nine times. If you were to do an honest assessment of your current follow-up habits, would you meet this target? Do prospective clients hear from you once or twice and then never again? Or do you have a system in place that makes it easy for you to reach out again and again without overmarketing or being too pushy?
The elements of follow-up systems
Different follow-up systems work for different businesses, but I always encourage my clients to have a few essential elements: First, have an email list. Encourage people who visit your website to sign up for your email newsletter, and make it easy for them to do so. Second, you can keep your business present in people’s minds through social networking. Using both these tools, you can send out newsletters and updates regularly so people remember you’re out there.
Also, don’t be afraid to follow up specifically with clients with whom you may have unfinished conversations. For instance, if you answered a potential client’s question via email but never heard back from them, wait a few days and follow up. Ask if your answer was helpful, find out if there’s anything you can do for them, and make it clear that you’re available to help.
If you can get into the habit of doing all this, your close rate should naturally begin to rise without the need for pushier tactics like cold calling. Think of these techniques as the final stage of marketing. Your advertising draws in pre-qualified prospects, and your expertise, personality, and professionalism, exhibited through your interactions, are what seals the deal.
Discover:
Great advice – too often we try to just make these strategies up as we go. It tends to lead to a disorganized (and sometimes neglected) approach. Thanks – Matt
Matt,
Spot on. That is one of the reasons I am a huge fan of putting the infrastructure in place BEFORE you do a lot of marketing.
Warmly,
Jennifer
Important to highlight the need to have a follow up strategy that isn’t overly pushy or alienating. Thanks for some good advice on how to achieve this; it’s really important to develop positive relationships. Even if you don’t win business now, by maintaining a good relationship with a possible future client, then it may often be the case that when it comes time for them to need work, they’ll call you. It’s achieved by staying on their radar in a positive manner.
Robin,
Great point! You never want your follow up system to push away potential clients. The goal is to build a relationship.
Warmly,
Jennifer
Having a follow-up system is one thing, but making if an EFFECTIVE follow-up system is another! Personally, I have a roladex with a business card from everyone I meet on business terms in it. I also sometimes stick Post-It Notes right onto their business cards if there was a specific detail that I want to remember about them – I find that making it slightly more personal like that typically gets a better response!
Veronica,
Sounds like you have found an effective system that works for you. Terrific!! You are absolutely right, if your system is difficult or does not produce results, it’s worthless.
The personal touch is a terrific way to make a real connect and get a response.
Warmly,
Jennifer
Hello, Jennifer. What good ideas for followup. I would like to share two experiences that I’m dealing with or have dealt with that stopped me in my tracks. I’m trying to figure out how to follow through.
1) A couple of years ago I had contacted someone in Marketing at a bank regarding a nonprofit I was working with. I included my business signature block at the bottom of the email. The gal emailed me back and left a voice mail saying she loves baskets, etc. But she didn’t provide personal contact info to get back to her. In the meantime, her boss, who is also a friend of mine, told me later that “you know, the bank doesn’t allow employees to conduct business on the bank’s time.” I said, the gal could call me during her lunch hour or after work. My friend said that’s true, and that was the end of the subject. The gal never called me back. I decided not to pursue her at work because I don’t know when her lunch hour is and when she gets off work.
2) In December 2011, at another bank, I did a fundraiser for the American Cancer Society. A couple of employees participated. I dropped off my fundraiser flyer for them to fill out the order form. Later when I made deliveries, the gal in Marketing, who is also a friend of mine, walked me over to one of the employee’s desk and showed me the baskets and collectibles she has on her side table. The gal wasn’t there at the time. The marketing mgr. said see she really likes your product. I looked at her and asked does she have a consultant? She said no. I said I would drop off a catalog for her to look at. Because I was not introduced to this gal and I didn’t want to bother her at work, I gave the catalog to the Marketing mgr, with my contact info and business card. Again the gal wasn’t there. I told the Marketing mgr. to have her contact me at her convenience. To this day I haven’t heard from her.
So I decided to move on and not waste my energy level on these two scenarios. However, in the back of my mind, it bothers me. I sometimes wonder if I was given the run around. And, if so, why? I don’t see how you can followup with someone at work, who you’ve never met. One thing that I do think about is relationship. Evidently, the 2nd gal is looking for a different relationship. The first gal I think possibly could just be rude or just got busy and forgot. She probably got busy. Anyway, I wonder how you would handle these two scenarios as far as followup? Thank you for your time in reading this message. Happy New Year from Alaska! Take care. Rosella Young, AA-1 Designs, Invest in yourself P.S. Please note the above website only operates in the U.S. In’t readers please google Longaberger to find one in your area.
Rosella,
Thanks for your comments!
The real key is to build a list of folks (your target market) who have a need for what you are offering. Then the relationship can be built overtime, keeping you from having to chase anyone down.
Warmly,
Jennifer
I am so grateful for your article post.Thanks Again. Really Great.
Gunnar,
My pleasure.
Warmly,
Jennifer
Follow-ups should be sistematic, but personal. I think a great follow-up sistem needs a simple CRM sistem to remember all the details about all clients and prospects; when was the last time we met or spoke with that person, what needs did I discover in that meeting? Were there any requests on their behalf/ and so on. It would be imposible to remember all the details after we’ve created a big client base.. which is the main objective for all of us. Thanks for the article. Very interesting.
Shamika,
I agree followups need to be personal and SUPER EASY to track. It’s to much to expect that you’re going to remember every potential clients details.
Warmly,
Jennifer
Great advice we recently sat down and strategized a complete follow up system and it made a world of difference for our sales team! Now using a great extremely inexpensive yet awesome CRM software from http://cirrusbusinessgroup.com/ that tracks and notes throughout process. One thing I know for sure no system is like throwing money away.
Leslie,
Thanks for sharing the resource!
Warmly,
Jennifer