A good question that came in:
"How long do you keep mailing people on your list if they refuse
to buy?"
First thing's first: what is your average customer value?
Based on historical averages, how much is a client worth to you?
If they buy twice a year, you profit $50 per time, and they buy
for 3 years on average - each new client is worth $300 profit to
you.
So - based on that number alone - what are you willing to invest
to get 3 x $100 bills in your hands?
Theoretically, you could invest $299 to get a new client - and
still make a profit.
Most people want to make more than that though.
The key to a great lead generation and follow up system is in
the tracking of results.
Each step of the way you need to know what is working - or not.
If letter 3 in your follow up sequence is the best performer -
and after that you don't see any new sales... you need to revise
steps 4, 5 - through however many steps you have.
Sometimes it can take years for someone to buy from you!
You may have mailed them 30 times and emailed them 50 before you
get an order.
But if each physical mailer costs you $2 - you are still only in
to the lead generation for $60 - you STILL profit $240 after 30
mailings.
So the question to truly as is - are you tracking every step of
the way and do you know what the average customer value is to
you?
If you know those 2 numbers you will know where in the process
you should stop.
Until you know those numbers, there is no fact-based method to
know exactly how much you are willing to invest in your lead
generation and sales process.
Right?
[here is a recent research report that backs this claim up:
ARF (Advertising Research Foundation) says that one out of every
five leads generated by advertising converts into a sale for the
product.
Source: Metalworking Marketer, 10/06, p. 3.]
Think about that - if you could convert 20% of your prospects
into paying clients - at a profit - how many times would you
follow up with them? The correct answer is... however long it
takes to get those 20% to BUY!
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