Leads : Like a friend who needs advice

Your list. Do you have one? List of what, you say? Fair question. Let’s step back a bit. I’m talking about leads, prospects… ie: interested parties.

Does every lead buy the first time they encounter your products and services? The late Chet Holmes always talked about three percent who are ready to buy “right now”. Your business might “meet” 100 people this month who haven’t encountered you before. Using Chet’s numbers, there’d be three who are ready to buy and 97 who aren’t. Yet.

Your prospects might be different than his were, but there’s a percentage that applies to your business and your prospects. You get to analyze your prospects and how long it takes them to work through the lead process and figure that out. There isn’t one number for you and every other business.

That said, if your numbers match Chet’s, then what are you doing with the other 97% of the people you meet? If they don’t match his, that’s OK. The same question remains… what are you doing with the rest of them?

If you know who they are and can reach out to them to educate them (ie: provide them with info to help them learn more about what they said they’re thinking about buying), then you have a list. If you can’t do that, then you don’t have a list.

“People hate being on a list”

You’ve probably heard that. Or said it. Or lived it. Actually, what people seem to hate is being on a bad list.

A bad list is one:

  • ..where everyone gets the same thing, every time they’re emailed, mailed and/or called – regardless of age, gender, income, marital status, history as a customer, or time as a prospect.
  • ..that gets emailed, mailed and/or called with hard sales pitches about things they haven’t shown an interest in. For example, if I stop in to look at a four wheel drive diesel pickup, I don’t expect you to bug me about the latest hybrid two-seater you received. The reverse is also true.
  • ..that’s all about them and rarely about you (the prospective buyer) & your needs. Generally speaking, we don’t care about your end of month sales quota, or your boat payment coming due.

Political campaigns are a good example of a bad list. You get…

  • Mailings whose message resonates only to already-decided voters. See above.
  • Mailings that are all about the candidate’s party and not one iota about the voter they are trying to convince.
  • Mailings that think they can get you to change your mind because someone is, or isn’t wearing a cowboy hat.

If you want an example of what it’s like to be on a bad list… register to vote. If your mailings treat prospects in a manner that’s even close to the way parties and PACs treat their mailing lists, it’s time to reboot.

A good list serves leads

“Lead” is a somewhat impersonal name for these folks – after all, they are real people who have shown an interest in what you do. Leads is just a word. Don’t let it distract you from the purpose of your list of them. Treating them as if they’re all the same is a bad idea.

Why didn’t the other 97% buy? Maybe they’re waiting to get paid. Maybe they need to complete a few other tasks before they can buy. Perhaps they’re starting to learn about something they know they need or want, but they’re far from ready to buy. Maybe they have to wait until their new budget year starts. They all have a reason (want or need) and each one has a timeline. Some are more urgent than others.

You probably know 100 (often taken for granted) things that’d help the 97 (or whatever) percentage of people who didn’t buy figure out what to buy and when. These are the people who, if treated intelligently and kindly, would benefit from being on a good list.

“What do I say to make my list good?”

Imagine that one of your friends decides they need to buy what you sell. What questions would you want them to have the answers to before they make a buying decision? How would you advise them as they navigate the learning & purchase process?

These are the things a good list says. A good list treats leads like a friend who needs advice.

Photo by ccampbell10

The care and feeding of leads

Last weekend, we did a little shopping for a “large recreational purchase”. We hadn’t shopped in this market before, so you wouldn’t have been surprised that I would have my radar fully unfurled to analyze all pieces of the process.

While I can’t say that I was blown away, I also wasn’t substantially disappointed. Let’s talk about the experience.

What happens to new leads?

We walked from the parking lot to the showroom without interruption, but in short order (less than a minute), someone at the reception desk (who was busy when we walked by) called out to us to see if she could provide some guidance. Perhaps we looked lost, but I got the idea that this was normal, whether the shopper is lost or not.

Yep, she could provide some guidance. She asked what we were looking for and a sales guy appeared pretty quickly. He engaged, asked good questions to find out what we were looking for and in what price range and then asked if it was ok to produce a plan for us.

“Produce a plan” in their lingo meant to enter a rough cut at our needs into their software, which would produce a list of their inventory items that matched our stated needs. This gave the guy what amounted to a shopping list (including lot locations of their best fit items in their inventory), which was designed to show us only what we fit while saving us a little time.

Given that their inventory is quite large and spread out all over creation, this seemed like a reasonable step. They clearly are not setup for self-shopping, and given the inventory and space you’d have to cover in order to do that, this is a good thing.

I have seen a similar process used effectively in real estate, but at that time, we were turned loose with a list of properties and placements on a map. The give them a map and turn them loose idea works for real estate as long as the prospect knows the areas covered by the map – since the prospective buyer would also know what neighborhoods or locations they aren’t interested in. Where possible, this info should be gathered before producing the map.

The idea in this case was to use the time to travel the lot, learn more about what we’re looking for and show us a few things that will help us determine what we really want, vs. what our newbie first-impression-driven wants might cover.

Talking to leads

As we progressed through the plan’s list of inventory to check out, the conversation was all about the salesperson’s experience with their purchases, questions about what we did and didn’t like about each inventory piece and some perhaps not so obvious tips about sizing, minor differences between each piece that could make a major difference in our experience and similar.

We discussed his background with the purchase we are looking at, and how he earns his customers for life – including the newsletter he mails to them each month. We’re talking about a newsletter with tips, a photo of his family, a recipe and news his clients need. A smart step that I rarely see.

As we reached the end of the plan, it was clear to us and to the sales guy what was going to work and what wasn’t. While we weren’t ready to nail down a purchase right that minute, he did ask – and as I told him, I would have been disappointed in his sales training and skills if he hadn’t.

You have to ask. You don’t have to be poster child of bad sales people, which he wasn’t.

Improvements when handling leads

While the sales process was not annoying (kudos for that), the lead handling process needs fixes.

  • No contact information was collected. Without contact information, they have no way to check in (without being pushy) and see how they can help us. Giving us a business card and a brochure isn’t enough.
  • We weren’t asked if we wanted to get his newsletter.
  • We weren’t asked why we stopped there instead of the litany of competition, or if this was our first visit to a store like theirs.
  • We weren’t provided any info to reinforce that we’d chosen the right dealer.

Leads must be nurtured and cared for by both your people and software systems.