You have no doubt arrived at this post because you are looking for new MSP sales leads for your business. But is this really the case?
So do the maths stack up? If you double the number MSP sales leads then you will double your sales and grow your business. That is true, but at the same time, you will probably more than double the cost of your advertising. (It will most likely cost you more than double as you will no doubt already be using the most responsive advertising medium, so you will have to start using less responsive advertising and so use more of it. So your costs will be higher).
And there are other factors at play too. Take a look at these sales rules.
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So if you have a sales team then the sales team will first focus on the easy sales (the low hanging fruit) they will not consistently follow up with sales leads that are not going to buy in the short term – after all following up on the lukewarm/ cold leads will not enable them to meet their monthly sales targets. And those leads who are not ready to buy yet will quickly get forgotten about and “fall
between the cracks” and the sales team will be looking for new, hot to buy leads. As I mentioned above, as you go to “weaker” advertising in order to generate new leads, so you will generate less responsive leads and so you see the issue – you are generating lower value leads that are harder to close, that the sales team do not want and they cost you more money.
So what is the solution? Before you spend any more money on new leads you need to implement an automated sales and marketing system that will work in sync and support your sales team. A system that does all the grunt work in following up with leads and nurturing them to a point where they are “warmed up” and ready to speak with a salesperson. This way the leads that have cost you money do not “fall between the cracks”.
So let’s look at the maths.
Say you are currentl
y getting a 1% conversion rate from your sales leads and leads are costing £1 each. So the Cost per Acquisition (CPA) is £100. OK, lets say you implement a sales and marketing system to automatically follow up leads, to nurture those leads and then pass them over to the sales team when they are ready to buy. So we still get the initial 1% conversion. But then say we consistently follow up with the remaining 99% (who did not buy). Now, say over the next 12 months we follow up automatically and gain another 2 sales from the initial 99 leads. So now then numbers look like this. We have 3X our conversion rate and so we have tripled the size of our business. Because we did not spend any more money on lead acquisition, so our Cost of Acquisition has come down from £100 to only £33. And this is without spending any additional money on advertising and lead generation.
Now at this point, you have an efficient sales and marketing machine that efficiently converts leads. And now you can start to look at using lower value/ higher-cost sources of leads because you have an efficient sales and marketing machine that can profitably convert poorer quality leads. You can now afford to outspend your less-educated competitors on advertising and marketing.
And all this is before we even consider the best AND lowest cost of leads for your business. Referrals from existing customers. Are you actively asking your existing customers to refer friends, family and business contacts? The chances are that you are not proactively harnessing this source of leads. Once you have an efficient sales and marketing system in place then referral marketing can also happen consistently on autopilot.
So – do you really need more new MSP sales leads? -or do you need a system to convert more effectively the leads you are already generating? If you are interested then this is exactly what I do for my clients. If you would like to book a free Discovery call at a mutually convenient day and time then click here.
