Doubling your leads with the same budget with the Site Shed’s Matt Jones
If I told you that there is a way that you could reduce the amount you’re spending on marketing and increase the amount of customers you’re getting, what would you say?
‘You’d probably be sceptical and to be fair, you probably should be. After all, as business owners we’re constantly being approached by ‘marketing experts’, or ‘business coaches’ that are trying to ram their services down our throats.
Our inbox is constantly filled with emails from ‘specialists’ offering us SEO (Search Engine Optimisation), web design, AdWords (pay-per-click, or SEM-search engine marketing), Social Media, etc.
99 per cent of these emails come from an @hotmail, or an @gmail email address, which if you’re like me you don’t even read based off the fact they don’t even have a professional business email.
As someone that works with trade based businesses from all over the world every day, there are some common trends that I regularly see when it comes to the ‘digital space’.
They’re not necessarily ‘bad’, however there are things that can be done to earn better results and get you a better ‘bang-for-your-buck’.
I’m going to share with you a scenario that I see regularly among companies I work with and speak with from all around the world.
I run a company called Tradie Web Guys, which offers websites and marketing for trade businesses and almost every day, companies call in telling us the same thing.
“We need more leads!”
It’s true that businesses need a fresh supply of new leads, however you may not need as many as you think.
Here’s the problem.
Leads are not the bottleneck!
Let’s say you’re currently getting 100 visitors to your website each week. These visitors may be coming through various sources. SEO, word of mouth, paid traffic etc.
In the next section I’m going to run through some figures to give you an idea of how the numbers might look. I’m using rounded figures to make it easier to understand, so try to follow along.
Let’s break it down.
If you have a website that is ‘converting’ at four per cent.
That means that out of the 100 visitors you’re getting to your site, you’re only turning four of them into a lead.
Now let’s say that you are currently converting half (50 per cent) of your leads into customers (which is very high).
That means from 100 visitors, you’re getting four leads, which turns into two customers.
Let’s say that to get those 100 visitors to your website each month, it’s costing you $100. If you’re only getting two customers from that investment, each one is costing you $50.
If you want more customers, you’ll need more leads and if you need more leads, you need more visitors, right?
The paradigm shift
Let’s explore two options
Say you want to double the amount of customers you’re getting each week. So we’re upping it from two, to four.
Based off the above formula, this is what it would look like.
Cost = $200/week
8 leads (of which half will become a customer)
8 times by 50 per cent = four customers
Cost per customer is still $50
You improve your website conversions from four per cent to eight per cent
You still get 100 visitors which is still costing you $100/week.
You now have eight leads
You’re converting half of them into customers which equals four customers.
Cost per customer is now $25
What this shows us is that a simple shift from focussing on ‘getting more leads’, to ‘converting the leads I have’ can increase the amount of work you’re getting by 100 per cent.
Did you know you could effectively double, triple, or further increase the amount of work you’re getting by not increasing your marketing cost at all?
What if you applied the same strategy and increased your budget… imagine then the potential results!
It’s not always what it seems.
Believe it or not, spending more money is not always the answer. Of course if you go to a company that specialises in selling Google AdWords, they’re going to sell you Google AdWords.
In most cases, it would be, “Oh, you have poor conversions? No problem, you’ll just need to spend more money to get leads”.
That’s why it’s so important to understand what I like to call the “Digital Ecosystem”.
• How does my website affect my AdWords conversions?
• How does the content on my website affect the time my visitors stay on my site?
• How good am I at keeping my customers engaged and nurtured?
• What does a prospect do, when they see me drive past in my work truck?
In reality, we’ve hardly scratched the surface of a far bigger topic. My hope is that this post got you thinking a little more about what you’re currently doing.’
If you’d like more specific information, visit TradieWebGuys.com.au and TheSiteShed.com – Australia’s number one business podcast for tradies.