Start investing in Lead Conversion
Despite how business acts, it is lead conversion, not lead generation that is the most important metric. And the simple reason is this.
lead generation is sexy, lead conversion is not.
The numbers – Lead generation
Australian companies spend approx. 15.6 Billion dollars a year on advertising, 50.7 % of which is in digital.
On top of this, on average, Australian business spends $200 to $300 per day on social media content across all platforms (Facebook, Linkedin, Instagram, Snapchat, Twitter, Tiktok, etc)
Business is spending a fortune generating leads, and as a sales guy that’s great, we need leads coming in the door.
The numbers – Lead Conversion
By contrast there are no figures for how much Australian business spends on lead conversion. On turning the precious leads they have spent so much on into cash.
The closest is on average, Australian business spends $458.00 per year on training each member of its team across all areas. And these numbers include defence and government departments.
MOST CONCERNING 41% of business in retail spend nothing on training their teams.
So as conversion rates decline companies spend even more generating leads.
HOLD UP
How about companies invest just a little in lead conversion, in training their teams how to communicate with todays buyer.
And by a little, 1.5% of each team members salary would be a great start, allocate that to a sales workshop, sales seminar or sales training course.
It takes only a small increase , under 5% to have a major impact on your bottom line.
In this simple example 50% improvement to turnover AND profit.
- You generate 300 leads a month and your lead conversion rate is 10%, that is 30 sales a month.
- Lets average the sales at $1000.00 and a margin of 20% and the client purchases 2 x per year.
- At a 10% conversion rate your revenue is $60 000.00 (30 leads x $1000.00 x 2 x PA) and gross margin of $12000.00
- At a 15% conversion rate your revenue is $90 000.00 (45 leads x $1000.00 x 2 x PA) and gross margin of $18000.00 – a 50% increase.
read this if you are looking to select a sales training course that works