Chapter 1: Understanding the Cost of Lost Leads

The effort, time, and financial resources invested in acquiring a single lead can be substantial. Therefore, allowing them to vanish without a trace is counterproductive.

I empathize with the frustration when a lead is classified as Lost. This sentiment is amplified by the significant costs associated with lead generation. For instance, in 2019, the average cost per lead was approximately $198, though this varies greatly based on factors such as industry, target demographic, and competitive landscape.

Consider a scenario where you invested in a three-day event to foster potential leads. Suppose you spent $5,000 on the event itself, an additional $3,000 on booth design, and committed another $2,000 as a speaker. After three days of effort at the booth, you manage to acquire just one warm lead.

After nurturing this lead for two months, when you're on the verge of closing the deal, the lead suddenly claims they are unprepared, providing a list of excuses. Upon returning to your office, you report the progress to your CEO and Marketing Director, who respond with disappointment, ultimately labeling this lead as Lost.

The unfortunate reality is that once a lead is deemed Lost, it typically means they are forgotten. This mindset is detrimental since it implies a lack of further engagement with that lead. It’s crucial to recognize that the design of the Pre-Sales Funnel needs reevaluation.

Pre-Sales encompasses the comprehensive journey of lead generation, marketing, and sales conversion. It is not limited to a particular role within an organization.

Organizations commonly visualize the funnel as a linear process, with leads moving from left to right. Once a lead becomes a customer, they exit the funnel, and if no deal materializes, they are erased from consideration. While this left-to-right approach seems logical, it becomes problematic when lost leads outnumber converted ones.

What we lack is a feedback mechanism. Instead of a traditional funnel, we should aim for a design resembling a 400m track in a stadium.

Chapter 2: Implementing a Feedback Loop

From my experience, this approach is particularly beneficial for professionals in Sales, Pre-Sales, and Marketing who find themselves in challenging situations. If your budget for generating fresh leads is nearly zero and your conversion rate hovers below 10%, we must adapt with our existing resources.

I dedicate considerable thought to creating a feedback loop within the pre-sales funnel. The concept is straightforward: redirect all Lost leads back to the starting point or any relevant stage in the process.

How can we achieve this?

Utilizing digital marketing tools is incredibly valuable for establishing this feedback loop. I rely on two specific software applications: Salesforce for lead analysis and HubSpot for marketing endeavors.

I meticulously analyze all Lost leads in Salesforce, categorizing them into several groups: leads needing additional time (waiting for budget approval, pending board meetings), those requiring more detailed information (competitor analysis, pricing comparisons), and leads who need clarification on our offerings.

With these insights, I strategize ways to re-engage with them. For leads that require more information, I ensure they receive it. They need to understand our product and how we can assist them in achieving their objectives, as well as access to our success stories.

Using HubSpot, I distribute informative email campaigns and social media posts to keep them engaged. Essentially, I transition them from Sales Qualified Leads (SQLs) to Marketing Qualified Leads (MQLs).

For leads that genuinely need more time, I take a proactive approach by visiting their offices with clear intent. I participate in their board meetings, presenting a compelling case for investing in our products and services. This approach effectively addresses the concerns of leads needing more time.

Questions from various teams (legal, finance, compliance) will be addressed through collaborative working sessions, ensuring that every detail is meticulously handled.

These digital and physical initiatives have proven successful in creating the feedback loop, enabling me to convert 30% more leads from the Lost category without requiring additional resources for new leads.

You can implement these strategies as well.