Picture a duct-work and filter cleaning service… we’ll call it Whats Up Duct (WUD). After five years of blood, sweat, and tears, owners Dave and Elisa built a thriving small business that is experiencing solid annual growth. Dave and Elisa love what they do and enjoy meeting new customers. WUD currently employs four other technicians and a office manager. Over the years, they have accumulated about 5,500 contacts through social media sign ups, PPC, landing pages, business cards and their website. On average, WUD makes $1,300,000 per year in revenue.
Unfortunately, Elisa and Dave are no longer doing what they love. What started as a passion for helping others live healthier, clean air lives has turned into a daily grind to keep things afloat. Elisa and Dave are excellent technicians, but have little experience in marketing except for what they have learned running a business. It seems that every year that passes, they spend less time doing what they love and more time buried in daily business concerns.
Elisa and Dave devote no time to nurturing potential customers and up-selling existing customers. They would like to implement referral programs and provide additional serivces for their current clients, but simply don’t have the time. Because of this, they fear that they are losing business.
Elisa and Dave are stuck.
They wonder where the passion has gone and are debating whether it is even worth it. They are a prime candidate for hiring a marketing person but simply cannot afford to. After all the cost of a “somewhat experienced” marketer would be in the 50k range.
So how can LAND help?
Like the majority of small and medium size business owners, WUD is losing about 80% of their potential customers due to indifference. Elisa and Dave know that they are leaving significant referral and follow-up revenue on the table, and potential customers are slipping through the cracks.
Sound familiar? Many small and medium size businesses are stuck in a similar situation. Let’s take a deeper look to figure out what is going on.
Stick with us on this, we promise it’s worth it!
Elisa and Dave are not exactly new to marketing. In fact, one of their most successful marketing campaigns is their monthly mailer and PPC marketing. Every month, they mail 3,000 fliers to potential customers. Let’s estimate Elisa and Dave pay about $1.00 for each flier and spend the remaining $3000 on PPC. This means, every month they are paying $6,000 to reach new customers.
Over the years, they’ve honed the messaging on their marketing efforts and have increased the call-back/email inquiry rate to about 2%. When they first started, it was around 1%. So, every month they can expect about 120 incoming calls/email leads (2% of 3000 fliers and PPC) from people who are potentially interested in healthier air for their home or office. If Elisa and Dave are naturally gifted at sales, they’ll turn about 20% of those 120 inbound calls into actual clients. This means that they can expect to gain about 24 new clients every month from their marketing efforts.
Still with us?
So, how much does each one of these customers cost Elisa and Dave? To keep it simple, we will assume that the $6,000 is the only cost for these two campaigns. Let’s take $6,000 and divide that by 24 customers. That means they are paying $250 per new customer.
That’s expensive! But not abnormal. However, the best gauge is the value of the customer over a long period of time and for Dave and Elisa it is still a pretty good investment.
But what happens to the remaining 96 customers who called but didn’t immediately purchase air cleaning services? For WUD, the answer is: tragically, nothing. Elisa and Dave are too busy to even think about following up with these ALL the 96 potential customers.
Most small businesses would also let these 96 interested customers slip through the cracks to never return and never purchase. These people expressed a tremendous amount of intent to purchase. But, like most shoppers, they want to purchase when they are ready, not when WUD is ready to sell to them, some are only in the “informational gathering” phase so it will take much longer for them to be ready to make a buying decision.
TYPICALLY, POTENTIAL CUSTOMERS ARE NOT READY TO PURCHASE ON THE FIRST INTERACTION WITH YOUR COMPANY. THEY NEED TO BE “NURTURED” AND THEY NEED TO GET TO KNOW YOU. THEY NEED TO TRUST YOU.
Using LAND Elisa and Dave can with very little additional effort collected the contact information of these 96 people to stay in touch. Perhaps LAND could engage the buyers with a helpful cleaning tip, a video, or warning about the risk of a dirty air filter to small children in a series of emails. Now they can commnicate about things that are of specific interest to their clientele and market to them accordingly with little effort on their part.
What happens next: It’s simple: a percentage of these 96 people will become paying customers for only a small monthly fee.
So, what is LAND
LAND develops Marketing Qualified Leads, using out-bound communications (email, DRIPs newsletters, text messaging) designed to send increasingly targeted messages. LAND also uses inbound metrics to record and gauge a prospect’s behavior/interest.
and what can LAND ultimately do?
Out of these 96 interested people who didn’t purchase up front, let’s say that 10% purchase the next month due to LAND. That’s about 9 additional paying customers! The following month, they continue to nurture and more closely narrow their marketing message to the remaining 87 people and obtain 20 leads who all had a significant interest in WUD. So, over the course of three months, they sold an additional 24 customers.
That’s a significant amount of new paying customers!
And how much time did they put into acquiring these customers? Beyond the initial setup and a few quick phone calls, no time at all.
LAND helped Elisa and Dave increase sales and save time. Additionally, WUD can now use LAND to help strengthen and deepen their existing customer base by referrals, up-sells, and more.
LAND helps small businesses succeedmarketing department can now be completed with the use of LAND service. Elisa and Dave have more money, more time, more freedom and more impact.