Our experts will talk about identifying lead quality as the issue behind poor conversion rate, as opposed to an under-qualified sales team.
They’ll look at the importance of proper audience targeting.
And they’ll speak to the need for a nurturing process to engage and interest leads in a business’s offerings.
Table of contents
1. The shocking things Charley uncovers
2. The role empathy can play
3. For whom does paid traffic not pay off?
4. When traffic is done for leads…
5. The agency versus sales team scenario
6. The benchmark you’re looking for
7. When leads are low qual: Charley’s approach
8. Are you casting too broad?
9. Sales as disqualification
10. A bias towards video
11. A process of nurturing
12. If you want your lead quality assessed…
The shocking things Charley uncovers
James knows visionaries in various fields often excel at their primary roles, but may struggle with secondary or tertiary aspects of their business, such as managing paid traffic or platform mechanics. He imagines Charley is shocked at the state of some of their accounts.
Indeed, in his reviews, Charley often finds financial waste and inefficiency. It evokes empathy, as he knows the stress and frustration it causes business owners. Many of these issues stem from poor choices in hiring, failing to check on a provider’s actions, or overly relying on temporary tactics rather than building a sound strategic foundation.
The role empathy can play
Given his own challenging start in the realm of ads, Charley feels for his clients. His passion for achieving that first conversion on a new account is like the thrill of hitting a golf ball perfectly. It’s a specific joy that not everyone might understand or appreciate.
James draws a parallel with surfing, though he acknowledges that, while getting the perfect wave is exhilarating for some, others might not relate or understand the appeal. It is, however, much like the intricate world of paid traffic, where setbacks are a common experience.
For whom does paid traffic not pay off?
Are there businesses, asks James, for which paid traffic is not a great option?
Charley posits that while most businesses could benefit from paid traffic if applied strategically, it’s not a universal solution. The efficacy of paid traffic depends on the business’s model, their audience, and whether they can cost-effectively capture their target market using this approach.
James cites an example of a woman who considered a low-ticket membership model but realized the financial dynamics wouldn’t support ad spending.
Charley says that while using paid ads directly for customer acquisition might not suit some business models, they can still strategically employ them to amplify other channels, such as content or podcasts, provided the tactics align with their business nature.
When traffic is done for leads…
So there’s a difference, says James, between using paid traffic for lead generation versus leveraging it for remarketing.
What if a business thinks they’re doing the right things, but despite getting a good number of leads, not many convert?
Charley cites an example of a client selling an educational program who, despite generating a significant number of leads, struggled with conversions. Their concern was that either their sales team or their conversion mechanism wasn’t working.
The agency versus sales team scenario
James and Charley know the blame game that often goes on between businesses and agencies. Businesses might blame the agency for low-quality leads, while agencies blame the business’s sales team and conversion process.
Both parties suffer, says Charley, when client results aren’t achieved. While it’s important that sales teams effectively handle the leads agencies bring in, frustration can arise when they are inundated with low-quality leads, leading to resource drain and lowered employee morale.
The benchmark you’re looking for
James asks if there’s a specific benchmark for lead-to-conversion rates, particularly for high-ticket experts.
Benchmarks vary depending on niches, says Charley. Certain areas, like AI, generate different contact rates than others. To identify discrepancies, Charley benchmarks against similar businesses they’ve worked with.
Benchmarks and aggregate data are important, says James – many businesses might not realize they’re underperforming without an external viewpoint.
One business owner Charley knows of made the good decision of seeking an external sales audit. It was determined their primary issue was the agency’s provision of low-quality leads.
When leads are low qual: Charley’s approach
What are the indicators of low-quality leads, James asks?
When it’s not economically viable to process numerous leads due to a low pickup rate, says Charley, it suggests a problem.
To verify if lead quality is the issue, Charley stresses the importance of knowing the sales team’s processes, including how often and how quickly they follow up with leads. James mentions the need for rapid lead response, noting a significant decay rate in lead quality when not promptly addressed.
Charley recommends contacting leads within a few hours, highlighting that efficient organizations see improved conversion rates due to quick follow-ups.
Are you casting too broad?
Sometimes there’s a problem of advertisements being too broad. By examining specific ad campaigns, Charley noticed that while many of the ads signaled a problem or intent, they didn’t offer a specific solution tied to the organization’s offerings.
Charley uses the analogy of asking someone if they’re hungry versus inquiring if they want to eat at a specific restaurant, highlighting the need for precision in targeting.
James looks to his own experiences, indicating that a broader reach isn’t always beneficial; the aim should be to get as close to the specific target as possible.
Charley also suggests using video ads over image ads, due to the richer context they provide and their potential to improve lead quality. And one of his clients required leads to watch a video for two minutes before allowing them to progress, a strategy that increased the quality of leads even though it reduced their volume.
Sales as disqualification
Has Charley heard of the concept of sales as a process of disqualification?
He has indeed, and loves that frame.
James stresses the effectiveness of pointing out on sales pages and in ads who a particular product or service is not suitable for, filtering out unqualified leads early in the process.
Charley points out, too, that aligning a marketing agency’s strategies with the sales team’s disqualification criteria can efficiently trim the number of unqualified leads. This ensures the sales team deals only with potential customers.
James has some skepticism, though, about the capabilities of many ad agencies. Many, he says, may lack depth in understanding buyer intent, which is crucial in determining lead quality. Charley agrees, noting the importance of recognizing and targeting buyer intent in the sales process.
A bias towards video
James and Charley talk of the growing importance of video marketing. James knows Charley’s expertise and enthusiasm for video, and notes that major platforms, from TikTok to YouTube, are emphasizing video content.
Charley admits his bias towards video – it’s the competitive edge, he says, of his agency, Valher Media. He remains open to adapting if other modalities become more effective in the future, but for now, video remains paramount.
A process of nurturing
Charley emphasizes the need to create remarketing campaigns specifically targeted towards leads, allowing for a nurture period filled with trust-building and proof. He believes that by showcasing testimonials, especially through video, the quality of the lead improves significantly.
James highlights the age-old concept of nurturing leads by recounting his past experiences in sales at Mercedes-Benz. Through magazine clippings in snail mail, they would keep leads engaged and informed of their latests offerings. Of course now, digital methods are the norm.
Charley notes a missed opportunity by many businesses: the lack of remarketing efforts aimed at existing leads who haven’t converted to sales. He and James both stress the potential for enhancing sales by reconnecting with past customers. There’s a great deal of untapped value in an existing database and re-engagement campaigns.
If you want your lead quality assessed…
James and Charley’s chat in summary looks at the significance of targeting the right audience, benchmarking with aggregate data, and ensuring consistent nurturing of interested leads to increase conversion chances.
For those unsure about their current lead quality situation or wanting to improve it, Charley offers an assessment at ValherMedia.com/review.
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