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How to increase your chance for sales by 10x? Manage leads in your company!
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How to increase your chance for sales by 10x? Manage leads in your company!
Thank you for joining, thank you for attending the event. I'm really happy that all of you guys decided to dedicate your time for today's webinar - I believe it will be really helpful for you. So, basically, we'll speak today about the main and the most important thing that you were interested in when you signed up for the webinar: how to increase the chance for sales by approx. 10 times. And the most important thing that we'll dedicate our time today is the Lead Response Time. So, during today's event we'll learn what is Lead Response Time, and how the Lead Response Time make your chances for sale 10x bigger.
The webinar will be conducted by me; my name is Bogdan, I am the Head of Business Development at CallPage. I'm really happy to conduct this topic for you cause, to be honest, I figured out this topic not long time ago and I found it really, really useful, and I already see the huge improvement even in our business since I joined the company and I started to go through the Lead Response Time step by step.
So, let's see what's the agenda for today. So, firstly, we'll speak about the difference between lead generation and lead management. Then we will have a look at the Lead Response Time; we'll speak about definition and the reality - what's in books and what's in real life. Why is Lead Response Time killing your sales and your business? Basically, that's where we see where is the biggest potential for growths of your sales. And the answer will be really simple: it's hidden behind the Lead Response Time. Then we'll move further in and try to understand how to measure the Lead Response Time in your business. We'll support this information not only by our own experience but also by researches (done, for example, by Harvard Business Review). We'll analyze why big players rely on Lead Response Time - such as Facebook and other big companies. And how Lead Response Time influences their convertion rates. Finally, we'll talk about how to improve the Lead Response Time in your business. There will be some action plan and also we'll have the questions and answers session. If you have any questions, just note them down, and we'll get through them in the end of the webinar. That way we will not distract the flow. If there's something important you want to clarify, feel free to type it in the chat. Any questions you'll have, I'll try to answer during the presentation.
I believe we are ready to start. The first question you have in your head is probably: why this topic? To be honest, few people talk about the Lead Response Time. Companies, as you see in this funny picture, are really interested in lead generation. Lead generation is, like, a really "sexy" topic on the market. But how to improve the lead and how to improve the relations with leads in order to make the customers have a success? It's not that "sexy" anymore - the reality. But we know what we do, we know what we're saying because we know the market since 2015, and our call back generates 700 000 calls per month. We have about 3,4 mln widget views per month, so 3,4 mln people see our widget every month... And we have 3 200 customers around the world. So, I believe these metrics are really reliable, you know, just to tell that we know what we are saying about the Lead Response Time.
So, of course there is not only our data behind the research but also the data provided by the customers that uses the CallPage devices at daily basis. Let's start with definitions... The Lead Response Time - this is the average time it takes for a sales representative to follow-up with a lead that requested the contact. As per Harvard Business Review, this is the definition of the Lead Response Time... To make it simple, as you see on the picture, this is the time between when the potential customer writes to you and when you contact him/provide an answer. My question for the beginning is: who has already heard about such metric? And, if you heard about it, are you using this metric in your company? Please, type it in the chat - I would really like to learn what's the experience of my audience. Have you already heard about such metric? .... Okay, so Felicja says : "No". Well, that's pretty much why we are here. I hope you'll have the profound knowledge after this webinar. ... Well, Oksana, thanks for the feedback... Yeah, to be honest I believe this should be one of the most important metrics; you should start using it in your business to improve your sales. Soon you'll find out why.
Let's move forward. That's the slide you anticipated the most: why this is so important? Case number 1: as you probably know, the waiting or the lack of contact annoys. On this very slide you can see several examples. On the left side you see the regular review on some website: someone is really not satisfied with the T-Mobile's response time. He sent his question, and he was waiting for a long time for the reply. In 2018 - even though it was long time ago - if you're waiting for something for even more than few minutes, or sometimes more than few hours, you're getting really annoyed - it will cost you stress. On the other side of this funny picture you see ketchup on the table. This was the flash mob on Twitter where people started to publish the picture from the restaurant. They went for a dinner. They waited for more than 30 minutes and still got no service, and that's what they did next. Even from this funny example you may see what people may do if they will wait for too long for something. It is a real life example.
On the other side the fact is that the Lead Response Time damages the entire sales process. So, basically, as you may see on this simple graph, the lower the Lead Response Time, the higher are chances to sell and vice versa - the higher the Lead Response Time, the lower are chances to sell. I know this is a simple graph, but further on I'll try to back up this graph with the Harvard Business Review references.
Why Lead Response Time may affect that dramatically... not dramatically, but spectacularly your sales process. Because you know how it works. First of all, we know who they are - we know who the customers are, and the customers know us. Then they start to recognize us. But, in the end, what's the most important? To close the deal with the customer. Make it with the "wow" effect... One of the good examples to make the "wow" effect is to answer his/her question within five minutes. Or even less than five minutes. This will make a spectacular effect on your customer; he/she will be satisfied with your service.
So, let's back up with some real data. As I said, we have this Harvard Business Review which was measuring the Lead Response Time and the best practices for lead response management. If you're interested, just go to the web and try to search for this research. At the moment, I'll try to focus on the graph #3: response time. All they did is they tried to connect... and call the customers after they submitted the forms. And, basically, you may see the conversion rate and the success rate... of the customer that responded. They called the customer withing first five minutes. The response time was just spectacular. For example, they called... they made 10 000 calls, and for the call they made within first five minutes... it just made the amazing impression. Almost everyone answered the phone at this moment. But, as you may see, just adding five more minutes - up to ten minutes - it already fell down to 2 000. It decreased almost five times... With 15 minutes - additional five minutes till they are calling back the customer - it's even less than 1000. So, it's already ten times less than when it was in five minutes. This is only few minutes difference... So, basically, then the tendency went down but, you know, not with this space. The most important thing you see on this graph is that there's a huge impact on the time of the sales when you provide an answer to your customers. This has the huge impact on the response rate and the satisfaction rate of your customers.
The next research was conducted by our company, we tried to analyze the real estate market in Poland. Why is it so? Because we are acting online so, basically, we are working as online marketing. We realized that one of the highest... We analyzed the price per click, for, like, combination of Google AdWords... So, here we have, for example, new apartments in Warsaw, and a price is about 12 zlotys, which in US Dollars is about $4. And, for example, this is apartment is Warsaw, in some particular district - it's almost 19 zlotys, so we have up to $6. So why is the price so high in the real estate? Because in this market you have the huge margin. So, with huge margin, they have huge competition on the market, so the adwords rating is really high for this section. If the price per click is so high, most probably they're just fighting for every single click, for every single customer. We decided to find the first 15 companies for research apartment in Warsaw... and decided to call them or fill the form on their website. We thought they will be just fighting for the customers. But that's what's happening, that is the result. Only half of the companies called us back. We filled the forms on every company's website where the price per click costs almost 6 dollars, and only half of these companies answered the phone. And still, look at the response time. The fastest company replied us within 32 minutes. Please, look back at the graph with the Harvard Business Review data where we have 5 minutes and 10 minutes difference - and here we have 32 minutes... And other ones... The time started to grow to one hour to over four hours... And half of these companies didn't even answer the phone. These are some really strange results.
That's what we got from this research. Within first 24 hours from sending the inquiry on the website, we received only six telephone replies out of twelve. The shortest response time was 32 minutes and 10 seconds. And the average waiting time was over 2,5 hours. Can you imagine? For us it's really strange, it's really funny because on one side you have the business sector, so real estate, it was one of the highest prices per click in Google AdWords, one click costs up to 6 dollars. But on the other side, they respond to you, like, in every two hours. Half of the questions still remains unanswered. They are just losing potential customers. By at least answering the phone or calling us back they could double their chances for sale.
The most important thing for us - and for you - is to understand how to start measuring the Lead Response Time in your business. The fact is that you can not manage what you can not measure, and that's the most important thing to understand. The first option how to start measuring the LRT in your companies is "mysterious customer". This is really simple but really useful, too. Create some fake accounts or you could just fill the forms; every possible form on the website. Any form on Facebook... make a mobile call, send an e-mail. Fill any application, any form, to see what is the Lead Response Time, to see how much time it takes for your employees to answer the phone or answer your question... That's the most important thing and it's really simple. I will suggest you just to go head and try to test every single channel you have to, even Instagram. The most important thing is just to go there and see what's the response time of your employees.
Before you do that, you need to understand what you should measure. Beacuse... the first question that probably arose in your head was: should they measure the number of operating hours and the number of actual hours? For example, we have the case... We have the case when customers sent you the question at 17:15 on Friday. And your sales rep answered the question at 09:10 on Monday. So the Lead Response Time is only 15 minutes. But is it so? Because in real life the customer receives the answer in three days (Friday-Monday). That's an important thing. I will suggest to you to measure not the operating hours but the actual hours. And if you see the gap there, most probably you'll have to work on the working time of your employees.
Second of all, if you measure the Lead Response Time, you need to understand what tools should be used in order to do it. Let's imagine you started to measure the LRT with a mysterious customer, so you know what is there, but how do you measure it in the future? How do you find out if it's improving, if your employees are getting better, if sales reps are getting better? I will suggest you to use this really cool tool called Geckoboard. You can put there all the data, you can integrate it with your favorite tools, with you favorite CRMs. From there you'll be able to see what's the Lead Response Time - in minutes, for example, and how does it improve. Of course, on the other side, you don't have to use such tool, you can also use CRMs or, even simpler - Excel.
Let's now see how the Lead Response Time influences the conversion rate on your website. It's simple but it's not really obvious. On our site we did some A / B tests for the application on our websites and Landing Pages. We tried to find out what has the biggest impact on the conversion rate. So, what we did... The rests from applications have captured the following results. "We will call you back...", and the options were: soon, within 24 hours, within 1 hour, within 15 minutes, within 28 seconds. With "soon", the result is the lowest possible. We put there concrete numbers so customers knew when they could expect our contact or the call back. The lower the number or the lower the time range, as you see the conversion rate goes up. The most important thing is the difference between 24 hours and 1 hour - as you see there is a huge jump there. The coolest is the jump from minutes to seconds. We put it there, let's say, "we will call you back in 28 seconds", and, as you may see, the conversion rate from this call to us was the highest. What does that mean? It's not only important what is the real Lead Response Time for your customer, a Lead Response Time you promised to your customer is important as well... Adrian just wrote that the connection failed. Can you please confirm that you can hear me or you can see the presentation? ... Good. Let me continue. Coming back to the topic... In 2018 it's just a crucial thing: the quick response. Just imagine that you are sending some questions online. Can you image that you'll receive an answer, like, over a night? Imagine you can provide an answer to your customer within, like, few seconds. This is really impressive. Keep that in your mind.
As I said, huge corporations or huge companies also rely on the Lead Response Time. Most probably you all know, or you all saw this at some point that there's this message on the Facebook chat: "Typically replies within a few hours", or "(...) few minutes". When the customers open, for example, your Facebook page or the page of your competitors, that will be one of the most important factors whether they will send you the question/contact you. That's the average response time to the customer. Companies like Facebook rely on this; we can rely on this as well.
Just to summarize this conversion rate topic - first of all, the Lead Response Time demonstrates positive effects on the conversion rate. This is the fact, as you may see. It means the shortest the time, the highest the conversion rate. The idea is that you want to put... and provide the customer the best possible Lead Response Time within seconds. That will be one of the most beneficial solutions for the highest conversion rate for you.
And now the most important thing. If you measure, you know there is some potential behind. The question is how to improve the Lead Response Time. How to make it better and how to increase the chance for sales. So, basically, coming back to our topic, how to improve the chance for sales even up to 10 times. You're improving the Lead Response Time. And here are the three simple ways. First of all: notification. I believe all of you guys are conducting some online businesses. Put on some notifications, just to let you know there is something going on, someone filled the form, someone's waiting for your answer. And the best tools for us - for example, that we are using in CallPage - aren't just the applications that are there in the market. For example, our [?] - our messanger that we use on daily basis. You can do some integrations there, and, basically, integrate evey single form, every single, I don't know, chat you have on Facebook/on your website, e-mails - pretty much everything you have you can integrate, you can put notifications there, and you may see the data... As you there's someone who wants to become our partner, or someone has a question. It's really easy. And of course there are tons of different solutions; there is Slack or Zapier. And I believe this is, like, the simple thing. Of course, if you don't use Slack or any other online messangers, you can just use SMS - you'll receive a text message everytime some fills the form. This is really important because sometimes you don't see the notification or you check your inbox, like, once a day. Can you imagine a customer waiting for an answer for two days before you'll check the inbox? This is the bad case. The best way to contact with your customer is when he's still on your website.
Second of all, the automatisation. There are tons of different solutions out there in the market: chats, bots, and callbacks, for example. You may see here... the Facebook chat or any other chats - where customers don't have to send you the e-mail and wait for the answer, they see your status, they could see if you're online, if you're typing. It makes a huge impact on the customer who still waits for the answer. You can also put some bots on your chat. This bot will answer the most simple questions that customer has. It will engage the customer before you'll jump into the conversation. This will provide you, let's say, few minutes to jump into the conversation and start chatting with your customer. Third option is callback - we use it in CallPage. When the customer shows up on your website and leaves his phone number, the system triggers automatic callback. The cool thing behind that is that you don't even have to call the customer because the customer will receive the call automatically. In CallPage, once the system sees the most interesting visitors, it offers them a free callback.
How to improve the Lead Response Time with the working hours. If you see there's huge difference between Lead Response Time and operating hours, and real hours, you have to improve the time shifts in your company. One of the solutions is to change working hours at your company; if you're working from 9 A.M. till 6 P.M., try to change the time shift to 8 A.M. - 5 P.M., just to see if this improves anything. If you see that you receive multiple questions in the evening or in the midnight, most probably you'll have to consider a night shift in your company. You want your customer to know that you care about him pretty much 24/7. This will make the difference. I believe this will be the crucial factor when a customer will choose you over your competitor.
We know how to measure the Lead Response Time. Now learn how to improve the Lead Response Time, and what is the action plan. The first thing, as I said earlier, you can not manage what you can not measure. So, the first thing I would do after the webinar if I were you - just go ahead and start testing the Lead Response Time in your company. It's really simple, just pretend to be the mysterious customer, try to send the questions to every channel you have in your company to see what's the LRT. Then you can use some metrics, some analytical dashboards, CRMs, even just an Excel to understand the numbers. And second of all, try to improve these numbers. And in order to do it, you can put notifications, put some chat bots, callbacks, for example, and play with your working hours. Just to summarize this topic... Lead Response Time, as I said at the beginning, is something people are not talking about because the topic is not really "sexy". But as the researches and real life examples show, the Lead Response Time has amazing effects on your sales. And the most important thing is to provide this response to your customer within first few minutes.