How many people do you need to expose your brand to in order to get just 1 client?
How many business cards do you hand out? How many networking functions do you attend? How many people do you tell about your business? This number represents your prospects.
Now how do you get these prospects to show interest in your product or service? How do they transfer from a prospect to a potential client? These are your leads.
To determine the number of leads you need to get 1 client, you need to calculate your closing ration. Do you close 100% of your leads? 50%? For each client that you have, you need to factor in the number of proposals you need to send or meetings that you hold in order to close 1 client.
Think about this process as a funnel.
First, we attract the attention of potential prospects. We can do this through social media marketing, advertising, and having an optimized website. These efforts are intended to drive prospects to the website.
Moving down the funnel, we want these to take an action on our website. They will fill out a contact form, sign up for email newsletters or download a document. When you have entered this level, you have contact names you can communicate with. They are now considered leads and leads are like gold.
Now it’s time to get them to know, like and trust you. You build a relationship with them and help them solve their problems with your product or service. We cultivate these relationships by educating them and engaging with them through email marketing, booking appointments, and remaining front of mind with them.
When they have become a customer, the marketing doesn’t stop there. Creating raving fans so that they will tell their friends and colleagues about you and refer your business transforms these customers into clients. They are your brand advocates and the most valuable type of customer.
They say it costs 6 times as much to get a new customer as to keep a customer. So ask yourself, how much are you spending to attract new customers and how much are you spending to keep the customers you have? If either answer is zero, you need to evaluate how much a client is worth to you. If you’re spending zero to attract them or keep them, then your funnel is probably empty.