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Why You Need to Do More Than Just Generate Leads: The Importance of Lead Nurturing

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In our previous article, Lead Nurturing 101, we discussed the fundamentals of lead nurturing and provided an overview of how it is conducted. In this article, we will delve into why lead nurturing is crucial and why your business should have a well-defined lead nurturing plan in place.

Generation Doesn't Equal Conversion The Numbers Don't Lie

A recent study by FranConnect revealed that three out of every four franchisors fail to contact their leads within the first four hours of their expression of interest. Shockingly, nearly seven out of every ten leads never receive a callback, and almost half of all leads received by businesses in the study fall out of the sales funnel due to a lack of response.

These statistics highlight a common scenario where businesses exert significant effort into lead generation but neglect to focus on what should be done after acquiring leads. As a result, the importance of lead nurturing is often overlooked, leading to significant negative impacts on bottom lines.

Is Lead Nurturing Worth the Time?

The answer to this question is a resounding "yes." If you find yourself asking whether lead nurturing is worth the effort, it likely means your business is receiving a substantial number of leads, and you are concerned about overwhelming your sales staff with the task of nurturing each one. However, you must consider the cost of not engaging in lead nurturing, as it plays a vital role in closing deals. Additionally, implementing lead nurturing doesn't require as much time as you might think.

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Automation Can Be Your Friend

While onboarding new franchisees will always demand time and energy, the initial stages of lead nurturing can benefit from automation. Automating repetitive tasks involved in nurturing leads allows you to quickly respond to genuinely interested leads while filtering out those who are less committed. However, it is important to avoid bombarding your new contacts with irrelevant information. The first few interactions should provide useful resources such as timelines, FAQs, and other relevant materials.

As Salesforce's eBook, "The Complete Guide to Lead Nurturing," explains, "There are only so many hours in the day, so the answer is to automate — very purposefully. A well-thought-out lead nurturing strategy is one way that you can connect more effectively across all phases of the customer lifecycle. At its core, lead nurturing is the process of automatically 'dripping' relevant messages to your leads over time."

Here are the reasons why lead nurturing is important:

  • Less Leads Needed for a Sale: By embracing lead nurturing, your business can achieve more sales with fewer leads. Neglecting lead nurturing means you would require a higher volume of leads to achieve the same number of sales. Engaging in lead nurturing helps optimize your lead-to-sale conversion rate, saving you costs associated with acquiring more leads.
  • Improved Business Relationships: Regular communication with leads allows you to understand their needs and address their inquiries about joining your business. This results in more informed potential franchisees and improved business relationships.
  • Lead Nurturing Produces Quality PR: Quality lead nurturing builds a client base that supports your reputation as a business that is accessible and willing to engage with potential partners. Word of mouth remains one of the most valuable forms of marketing, and effective lead nurturing helps foster positive word-of-mouth referrals.
  • Upselling Opportunities: Through quality lead nurturing, you can maintain engagement with potential customers from the moment they allow you to contact them. This allows you to better understand their wants and needs, potentially enabling upselling opportunities that align with their ambitions. It also helps you identify the primary concerns and queries of potential partners regarding your business.
  • More Informed Data: Effective automated lead nurturing systems collect data on click-through rates, email open rates, and other metrics. This data provides valuable insights for your sales and content marketing teams, allowing them to optimize initial contacts and follow-ups with leads.
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These are just a few of the reasons why lead nurturing is important, and there are many more that could be mentioned. However, considering your business goals, it is worth noting that according to MarketingSherpa, companies that excel at lead nurturing generate 50 percent more sales at a third less cost.

Therefore, a well-informed and strategically implemented lead nurturing strategy should be a focal point for your business today and in the future.

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