When you get some experience running a business, you realize that there’s a big difference between a lead and a sale. You might have lots of leads but only some of them will convert into actual business for you. At first, you might struggle to get people who are interested to commit to hiring your services. Here are a few things to look at to help you figure out what is going wrong.
Targeting the Wrong Customers
You have a service or a product to sell. There are customers who need the product or service and may be interested in buying it. The trick is to make sure that your sales and marketing attempts are reaching the right customers. For example, if you are focusing your business on business clients, residential property owners are probably not the right fit. Similarly, offering a luxury service may not land well with prospective customers on tight budgets. Consider clarifying your available services so that when customers see an advertisement or visit your website, they can identify quickly if you can do what they’re looking for.
Reaching Leads Too Early or Late in the Purchase Cycle
Anyone who is looking for a contractor will go through a cycle as they make a decision. Securing a customer’s commitment depends on where they are at in the cycle once they find you. If they are in the early stages of research, still determining what they want, you should provide detail about your available services and other information. If they are just about to make a decision, you should be giving them information that helps them feel comfortable choosing you. Meeting them where they are is the key to giving them what they need.
Failing at Follow-Up
Failing to follow up on a lead is one of the biggest reasons that businesses lose out on conversions. Sometimes, you’ll get a call or an email from a prospective customer that you can’t address at the moment. Within a day or two, you’ve forgotten all about it. And by the time you get to it, they have concluded that you weren’t interested and moved on to someone else. It may seem ridiculous that contractors would leave possible clients on the table this easily, but it happens more often than you think. Set a reasonable response interval for new leads, usually one or two days, and make sure that you follow up on them.
Sales Tactics Are Too Pushy or Lukewarm
As a general rule, customers don’t like feeling pressured to buy something. They may need to have you sell them on your services, but there’s a right balance in approach. You’ve probably experienced it yourself many times. Trying to buy something when a salesperson is so pushy and doesn’t seem to care what you want feels exhausting. On the other hand, trying to get a salesperson to respond to your questions when they seem disinterested can be just as frustrating. Aim for a balance between pushing people to commit and acting like you don’t care about getting their business. Responding attentively to their needs is the best path to securing a commitment.
Price Doesn’t Fit the Service
Anyone who works in sales can tell you that there is the price that you want to charge for something, and there is the amount the people are willing to pay. If you’re offering a service based on low cost to customers, then the price should reflect that. If you’re emphasizing custom work or high-end materials, you need to make sure that the customers looking for that service can find you. Sometimes, customers are hoping to get the gold standard but they aren’t willing to pay for it. If all of your customers seem to fit this category, then you probably need to change your pricing structure or your services to suit.
The future of your business lies in your ability to turn potential leads into paid work. With these tips, you can solve possible problems and make your sales efforts more effective. For more information about building your own contracting business, contact CSLS today!