Like any other newborn, a fresh lead holds great possibility—or heartache. Turning a lead into a mature, profitable relationship requires all the coddling and nurturing you can muster. Dr. Spock never wrote a book on marketing, but others have written on the importance of lead nurturing, and the positive results it will have on your sales increasing, growth and profitability.
We have sifted through the benefits of lead nurturing to come up with five approachs that provide your leads with a little motherly care to increase sales and profits.
1. Improve Your Leads to Close Ratio
According to Marketo, around 80% of all leads don't result in a purchase. When you nurture a lead you can lower this number significantly. Providing follow-up emails and informative content will help your business become more relevant to these potential customers. When it's time for customers to make a purchase, they will already have one solution in mind, your company.
2. Help You Become a Trusted Authority
Many customers are fearful of making a purchase because they simply don't have enough information, and are scared of making a bad decision. By becoming a trusted authority through educating the prospective buyer, you'll increase the chances of closing a sale when the customer becomes confident he/she is knowledgeable enough to make a decision to buy. When you control what and how someone learns, you create the foundation necessary for them to purchase your solution.
3. Reduce the Need for Discounts
Everyone likes to get more by paying less, but what people really love is when they feel that others care about them and their success. When you assist a potential customer through the sales cycle of awareness, evaluation, and then finally a purchase, you're demonstrating that your company cares about their success as a person and as a company.
Buyers are often willing to pay more for products from a company which they feel an affinity toward, rather than to save a few bucks by purchasing from a company which they feel little or no connection to.
4. Reduce the Time Customers Need to Buy
Not only does nurturing a lead through the sale-cycle primes potential customers to make a purchase at a higher sales price, it also reduces the time necessary to make it through the cycle. A study completed by Market2Lead found customers spent 23% less time from awareness to purchase, if they were engaged with an active lead nurturing program.
5. Generate New Leads
Using content-rich marketing while nurturing your leads can increase the rate of referrals. Particularly useful content is often shared among potential customers, and this tends to help generate new leads. What could be better than securing one sale while generating new leads for your company?
As you can see, there are many reasons why lead nurturing is a critical piece of your marketing mix and how it can positively cause a sales increase and impact growth. To see more thought-provoking stats on the impact of lead nurturing, visit Hubspot's Marketing Blog.