sales notes

Effective Lead Response in Sales

A new lead comes in—the clock is ticking. How much time do you think you have to respond before your lead falls off the radar?

In today’s competitive world, your response speed is your biggest competitive advantage, and this is particularly true when selling to consumers and small/local businesses.

The longer you take to respond to a fresh, hot lead, the lower the odds are of converting that lead into a customer. The cooling of that opportunity is referred to as Lead Decay. Research shows that chances of converting a lead drop by 21x if you take longer than 5 minutes to respond. This study is so frequently mentioned in some sales circles that it’s known as the “five-minute rule.” So, by simply waiting or delaying before responding to an inbound lead, you’re losing potential business and leaving money on the table.

After reading that, you may not be surprised to find out that 78% of consumers buy from the first company that responds to their inquiry. So, if you’re not the first to contact your prospects, you’re missing out on new business and potential customers. Small tweaks to your follow-up processes and changing your perspective regarding your first outreach can make a significant difference for your business.

Today, 55% of businesses take 5+ days to respond! Unless you’re a big corporation with a well-recognized or beloved brand, you likely aren’t generating most of your inbound leads organically. Paid advertising across different platforms can get very expensive. So, how can anyone let even a single lead sit for a full business week or just slip away entirely?

The good news is that this is fixable! You also don’t need to put in a herculean effort to see immediate improvements and results. Let’s understand how this happens and some things you could be doing today to fix it!

How are leads contacted today?

There is a range of sophistication in the ways businesses respond to leads today. At the high end, there are companies that staff call centers and measure their sales people on how quickly they respond to leads (very expensive). At the low end, there are businesses that just try to respond whenever they get a chance between meetings and appointments (less effective). Some people aren’t even aware of lead decay or that their current processes are hamstringing their progress.

Unpacking both of these processes, we see that businesses are relying on phone calls to respond to leads. However, 76% of people don’t pick up phone calls from numbers they don’t recognize. Then, even when you do end up getting through, the person on the other end is typically unhappy they picked up for a sales person. So, the big question is: how do you meaningfully contact a lead within 5 minutes without calling?

How to Meaningfully Contact a Lead within 5 Minutes without Calling?

Let’s take a look at our options and understand what tools are available to help us reach our prospect as quickly as possible to when they express initial interest.

Email Automation

You’re likely already collecting email addresses from your leads, so try reaching them there. Instead of relying on a human to write an email when a lead comes in, automate an immediate email response. You can set up your lead capture form to trigger an email to get sent upon submission.

Pros:
    • Emails are inexpensive and easy to set up.
    • You’ll have an immediate touchpoint with your lead and a leave-behind in your prospect’s inbox when they open their mail client.
Cons:
    • Emails have a 18% (and dropping) open rate.
    • Automated emails do not feel personal and risk feeling like spam.
    • There are a number of factors that could land you in spam filters that prevent you from reaching your lead.

Voicemail Dropping

Including this one since some folks use it, although it’s not the most pleasant experience on the other end. Voicemail dropping is basically planting a pre-recorded voice message into someone’s voicemail. The phone doesn’t ring, but they do receive a notification once you leave a new message. This one is popular amongst the cold-calling crowd; instead of calling dozens of phone numbers, listening to the greeting, and waiting for the voicemail prompt – you can record a personalized message once, choose your recipients, then send it out at once

Pros:
    • It’s far-reaching, working with both landlines and mobile phones.
    • If you hit a mobile phone, your lead will likely see the voicemail notification.
    • Saves your salespeople time on phone calls.
Cons:
    • Voicemail dropping is impersonal and, most importantly, feels spammy.
    • You don’t know when your lead will check/listen to their voicemail – or if they will even listen to your message at all vs deleting it immediately.

Website Live Chat

A great opportunity to have that first conversation with your prospect is when they’re live on your website. This gives you a chance to answer questions and persuade a prospect to schedule a meeting or make a purchase.

A live chat tool can help to begin that first point of contact and initiate the qualification process. It’s also one of the easiest ways to reduce the risk of losing a potential customer to a competitor, or due to slow response time. If staffed by humans, they can be great for basic conversations.

Pros:
    • Immediate access for customers
    • Efficient use of employee time
    • Live customer chat is affordable
Cons:
    • May feel impersonal
    • May not work on mobile devices
    • Often times they’re just chatbots that are not helpful and, at worst, frustrating

Text Messaging / SMS

Texting is a communication channel that benefits from 98% open rates – think about it, how often do you let your unread count build up for text messages? It’s a channel that consumers are constantly using and checking on their mobile devices that they take with them everywhere and have in their pockets (or in their hands) at all times.

While SMS is very effective, it’s important to be aware of how personal the channel is and to not abuse it.

Pros:
    • Text messages are delivered in real-time
    • Incredible open rates of 98-99%
    • Highly interactive yet non-intrusive
    • SMS can be both personal and expansive
Cons:
    • Limited advertising space
    • You can’t use the same content repeatedly
    • Blocks of text feel robotic and spammy

Tape

Tape delivers a face-to-face sales pitch directly to a prospect’s mobile phone over SMS, using an immersive no-download video experience that feels like FaceTime meeting Instagram Stories. Face-to-face video feels very personal, which is why Tape can be a great way to engage with your prospects.

Tape allows you to create animated GIF previews with confidence and users feel intrigued to click on the link to see the video. The video player captures analytics and routes them into your CRM while offering a call-to-action button to drive the prospect to the next stage in the sales process.

Features:
    • Vertical video by default
    • Animated gif sent in text message to entice prospects to open the video message
    • Multiple videos in “story” format (like Instagram stories) to display multiple products or break your message into digestible chunks
    • Call-to-action buttons to drive customers to take an action
    • Offers detailed analytics (open, view, video interaction tracking at the recipient level)
    • Deep CRM integrations and automation options


You can try a demo from our homepage.

Final Words

Decreasing your response should be one of your primary objectives for 2020, no matter what. Delaying your response to leads often results in lost opportunities (lost money). Fast responses increase the chances of conversion, and your best chances of making a successful contact with a prospect are within 5 minutes.

Your ability to respond to leads quickly is assisted by having the right tools to do so. While speed is critical, relevancy is also important. Make sure to equip your team with tools that allow them to send the right message at the right time quickly.

And keep in mind—every minute counts!

Coast Tradelines

Customer Spotlight: Coast Tradelines

Coast Tradelines provides reliable and affordable Authorized User tradelines to boost customers’ credit to help them achieve their financial goals.

Objective

Coast Tradelines receives thousands of leads every month through their lead generation efforts across a variety of digital channels. Their objective was to improve the conversion rate of captured leads to live sales calls.

Implementation

In July 2019, Coast Tradelines integrated Tape’s Automated Response product using a combination of Tape’s Zapier Zap and Tape’s Hubspot Integration. This allowed them to enable instant Tape responses from submissions on their Facebook Lead Ads as well as their web forms hosted on their site and on Hubspot.

Yooka, Coast Tradelines’ marketing partner recorded a quick and simple video to use in their outreach.

Results

In just the first 2 months, Tape drove a 3x lift in conversion from lead capture to sales meeting from 7% to 21%. Additionally, recipients of Tape outreach were excited to view the message, boasting a 62% view rate.

What’s Next?

While these results are already very impressive and driving meaningful business results, Trade Coastlines is now working with Tape’s Creative Services team to optimize their campaign by rewriting their script and using a professional actor to record a new video that will better resonate with their target demographic.

The king is dead long live the king

Brick & Mortar is Dead. Long live Brick & Mortar!

The continued relevance of traditional retail in the digital age

This originally appeared as a guest post on Proof Factor’s blog

One of the most fascinating storylines I’ve been able to watch unfold during my career in technology, first as a product lead in consumer internet then as a venture capital investor and now as an startup operator, has been the evolution of retail. As eCommerce began to explode in popularity through the mid-2000s, “experts” pushed a popular storyline spelling the death of traditional, brick and mortar retail at the hands of online shopping. The logic was sound as the myriad advantages over eCommerce were so easy to list: instant gratification, near limitless geographic reach, zero waiting lines, and no physical storefront costs (both real estate and payroll), among others.

Beyond that, the results over the last 15 years contribute to the narrative. Countless impressive direct-to-consumer (D2C) brands have built businesses with millions of customers following the eCommerce model. Amazon Prime alone has over 100 million loyal members today.

With all these truths listed out 25 years after Pizza Hut sold the first pizza online and 14 years after the launch of Amazon Prime, it might seem like the reality today in 2019 would be brick and mortar retail being on its death bed.

Rumors of traditional retail’s death, however, have been greatly exaggerated. In actuality, as the golden opportunity of selling online attracted more and more competition, advantages over traditional retail like decreased physical costs were met by challenges unique to eCommerce like rising digital acquisition costs and more difficult brand building.

To put the scale of competition in perspective, there is not just one online men’s haberdashery option, there are countless. There is not just one super stylized, online glasses brand, there are a multitude. There is not just one meal kit service, there are at least 10 that have raised more than $20MM. It sounds crazy writing all of this and that’s without mentioning the battles that rage in the pet category, socks, men’s sexual health, and toothbrushes (not a joke…).

These waves of digital competition for even hyper-specialized categories have driven companies to revisit brick and mortar on multiple levels.

The first level has been well documented. Skyrocketing costs for digital advertising and customer acquisition overall online made opening physical stores a reasonable strategy to diversify customer acquisition approaches and brand building beyond online methods.

Related image

Bonobos launched in 2007 with an online only offering of men’s clothing, but five years later opened their first standalone Guideshop to allow customers the ability to try before placing an online order.

Related image

Warby Parker was founded in 2010 trying to avoid physical spaces with their “Home-Try-On program”. In a few years, however, the advantages of brick and mortar began presenting themselves with pop-up shops being a core piece of the Warby strategy before eventually announcing their goal of hitting 100 permanent retail stores by the end of 2018 and even.

Image result for casper shop

Just last year, Casper, which started the mattress-in-a-box craze, announced that they planned to set up 200 stores around the country.

Plater

Even the meal kit delivery service Plated is now extending its availability in Albertson’s grocery stores (the company that acquired them).

The next level involves the realization that physical world commerce experiences are superior both from the consumer’s and retailer’s points of view. In an outstanding retail experiences, a shop visitor immediately encounters greeters creating a great brand experience and a personal connection to the store. Being in the store, she’s able to touch and feel the products that interest her. As she shops, helpful store associates notice her hesitant look and approach her to aid the buying process. Finally, when she completes her purchase a friendly thank you for her business caps off the positive feelings woven into her buying experience.

Beyond the many surveys confirming consumers enjoy real world shopping better than their digital cousins and countless digital brands opening physical stores, advances in technology have further confirmed how important physical world strategies are to the success of retail.

Related image

Companies like Intercom and Drift give visitors to a digital storefront the ability to ask questions while shopping like they would turn to a sales associate in person.

Image result for drip.com cart abandonment

When online shoppers exhibit hesitance, products like CartStack and Drip send a digital salesperson in the form of cart abandonment messages to encourage a sale.

Related image

There are even startups, like Hero that are digitizing the ability to examine products before buying by connecting in-store associates to online shoppers with live video streams.

Even my company Tape, which started focused on enhancing more enterprise sales processes, has found a customer base in eCommerce companies who like the ability to mimic sending a salesperson to interact with customers face-to-face in the form of mobile videos delivered directly to customers phones.

The trend it seems is for the best online retailers to maintain ties to traditional retail by incorporating physical locations in an omnichannel strategy while also designing their digital experiences in its likeness. In other words, Brick and Mortar is dead. Long live Brick and Mortar!