How your leads will become customers
Tradies, listen up! Are you struggling to win your quotes? You’re not alone. One of the main goals of running your own trade business, and probably the drive behind working as hard as you do, is to win work and make money.
In order to do this, you must work with customers to generate a good turnover, but more importantly, you need to make a profit (a conversation for another time).
Many trade business owners will market to attract new customers. They claim they are ‘super busy’ completing quotes, yet question why they aren’t making enough money.
The thing is, getting the customers to call is only one half of the puzzle (an important one). This is generating the lead. The other half is converting them into a customer. This only happens when the lead gives you the ‘go-ahead’ to proceed with the work that perhaps you have quoted.There is clearly some confusion around the terminology ‘lead’ and ‘customer’ which we hope we’ve cleared up…still not sure? Here’s a real-life situation for you.
We were talking with a trade business owner at one of our ‘Next Level Tradie’ live events about how unsatisfied he was with the low turnover and low profit in his business. He strongly believed that his marketing efforts and hence lead generation were more than enough to reach his turnover and profit goals. This concept isn’t wrong, but it’s definitely lacking. What’s critically important (and as I mentioned, often disregarded) is he needed to place more emphasis on converting those leads into customers. He got the phone to ring, but he wasn’t putting any effort into helping them say ‘yes’ to becoming a customer.
Doing the Math
Here’s another example… a great deal of business owners we speak with operate by providing a quote to a customer. Let’s say a business conducts 20 quotes per week and of those quotes, around 30% are actually converted into customers. This means 14 of those quotes were lost!
Now, let’s say that the average dollar sale for these quotes is $9,000 each. That equates to $126,000 of potential revenue lost per month and $1,512,000 per year!
‘What!!!%%?!!” I hear you say… yes, we said the same thing. A crazy amount of money left on the table. This is why converting leads is incredibly important as the losses can be greatly significant if ignored.
But how do you increase (or guarantee) your chances of winning almost every quote? Let’s get to a more in-depth look at how you convert your leads…
Improve Your Lead Conversion Process
There are many points during the lead conversion process that can make or break the conversion. Focusing on these areas and identifying methods on how to improve them will definitely help convert those leads and gain life-long loyal customers. Take a look at how you can improve your key areas in your lead generation process:
- Position yourself and your trade business as competent and trustworthy.
The way you can make your business appealing and presentable to prospects is by creating a website that is informational, functional, and user-friendly. Ideally, your website should show your contact information, business accolades, unique selling proposition, testimonials and of course, products and/or services that are top notch.
Apart from websites, you should also optimise your social media profiles by adding your location, telephone number, and consistent relevant postings. Ensure you have up-to-date reviews listed on your website and profiles to show the world the credible and awesome business we both know you are!
- First point of contact
Any sort of discrepancy in terms of tone, questions asked (or not asked), and scripting can turn the lead off your business instantly.
- Proceeding with the job
If you think you can provide great service when quoting and then slack off after they’ve approved the quote, think again. You not only want to convert these leads into customers, but you also want to convert them into LIFE-TIME customers! After all, your average dollar sale on return customers increases by 3 times!
Improve Your Follow Up Process
- If the customer DOESN’T go ahead…
Sometimes, despite your exceptional customer care and service, the customer still might not want to go ahead with the quote on the day! This doesn’t mean you should give up. You can still instil your business brand into their mind by leaving the quote and your business contact information. Who knows, they might change their mind if you do a follow-up.
Following up customers who haven’t gone ahead with your quote straight away is one of the most important things you could do to increase customer conversion (and profits)! Everyone should be doing it, especially when it’s a known statistic that 80% of sales occur on the 5th-12th contact!
You need to be making contact at least once a week via email, phone call, text, or other… (Check out the Quote Flow System HERE for the exact follow up steps we use in our own trade business).The lead will a) either go ahead with the work eventually and be appreciative that you followed it up, or b) politely say no and also be appreciative that you followed it up. So you’ve got nothing to lose…
Hopefully, utilising and improving these key areas in your lead conversion process will establish your business’s credibility to increase customers and hence profits. After all, it’s okay to generate as many leads as possible, but it’s important to recognise the importance of converting those leads into a customer, hopefully for life.
About the Guest Authors: Angela & Andrew Smith are Founders of the Lifestyle Tradie Group Pty Ltd.
Passionate about helping trade business owners achieve business and lifestyle success, they have spent the last 10 years mentoring trade business owners Australia-wide. They themselves are the owners and operators of an award-winning plumbing business in Sydney!