We’ve focused lately on WHY it is so important to ‘convert’ every lead into a booked job.
NOTE: Remember, it doesn’t really matter HOW a lead arrives- text, email, Facebook, Yelp, Google Adwords or even… by phone! You MUST ‘convert’ or really BAD things happen! Doubt me? Read on…
In Part 1 of this series I shared a formula to calculate your very own Pro-rated Marketing Cost per Call (PRMCC)! (It will be MUCH higher that you think.) When you ‘Fail To Convert’ (FTC) your marketing investment is WASTED! (And of course the actual income from the job is lost too!) But this isn’t all..marke.
In Part 2 we did a deep dive into your ‘Downstream Income Loss’. CLICK HERE to see how an actual company’s average job ($368.79) translates into a ‘downstream loss’ of $7,819.59 when they FTC! Terrible, right? But wait! FTC gets worse… much, much worse!
Calculate the potential ‘Cheerleader Lost Income’ when you FTC even a minimum charge job!
NOTE: I’ve used this same slide for over 20 years in SFS Training events. (Sadly, I haven’t needed to change the numbers! Which shows how backward our industry is on pricing!)
We’ll start with an absurdly low minimum charge job of $140.00… lost when your company Fails To Convert the lead. No big deal…? (Get your calculators out!)
1. FTC “Direct Return” loss. (Actual job amount.) $ 140.00
2. FTC “Downstream Income” Loss. (Assuming this ‘Lifetime Client’ spends this minimum amount every other year over the next 30 years.) 15 x $140.00= $ 2,100.00
3. FTC ‘Cheerleader Income’ Loss. (If this client becomes a Cheerleader and refers 4 more ‘Lifetime Clients’.) 4 x $2,100.00= $ 8,400.00
4. FTC ‘2nd Generation Cheerleader’ Loss! (If each of the four Lifetime Clients above send you just three more Lifetime Clients.) 4 x 3 x $2100.00= $25,200.00
Your total FTC potential Cheerleader Lost Income? $35,840.00!!! WOW! (And all from a ‘crummy’ $140.00 job! (The numbers zoom up exponentially with larger job amounts.)
Let’s wrap this ‘Fail To Convert’ series up! Focus on your ‘Lead Conversion’ strategy (most don’t) and you’ll 1) get a better ROI on your per call marketing cost, 2) improve your daily cash flow, 3) increase your ‘Downstream Income’ from repeat clients and 4) supercharge ‘high-profit growth’ with ‘Free Cheerleader Marketing’! (see above)
You can dig nuggets out of our SFS website to (slowly) improve your lead conversion ratio. OR you can invest three hours (and 149 bucks) to quickly transform your business with my SFS: ‘Winning over your caller’! LIVE seminar! (Your choice!) CLICK HERE to learn more…
Of course, once your phone blows up with Lifetime Clients begging you to work for them you’ll need motivated, trained quality employees to convert these folks into… even MORE Cheerleaders! (And yes, your frontline techs are essential in your ‘Cheerleader Conversion’ effort!) Let’s focus on this real soon!