80% of Sales Happen Here: Decoding the 5th to 12th Touch Points

I hope you’re enjoying this weekly email where we’re presently covering the 12 Habits of Highly Profitable Businesses.  Last week we covered the importance of Conversations – Powerful Offer.  Today, I further the Conversions conversation with the topic of Nurture Campaigns.

In the world of sales and small business ownership, the critical factor often lies not in the initial lead generation but in the subsequent follow-up. It’s a common tendency for entrepreneurs to fixate on acquiring leads, neglecting the reality that only a minute fraction, less than 1%, transition into immediate buyers. The significant majority, 99%, are not ready to make a purchase on the spot. However, diligent and consistent follow-up can convert many of these prospects into future customers.

Surprisingly, a considerable number of small business owners fail to follow up with their prospects after the initial contact. This is a missed opportunity of profound proportions, given that a staggering 80% of all sales materialize between the 5th and 12th points of contact. This statistic underscores the potential of an untapped market waiting to be harnessed.

The key to unlocking this potential lies in the implementation of a nurture campaign, a strategic approach that can substantially boost revenue for businesses. A nurture campaign operates by automatically delivering scheduled communications to customers or prospects. Once a compelling offer is crafted, the campaign extracts specific segments to send to prospects consistently over time.

Consider the case of a sunroom company that utilized an Idea Guide as its compelling offer. While only around 20% of prospects actually read the guide, the primary objective is achieved – obtaining contact information for subsequent follow-up. The contents of the Idea Guide, such as the benefits of owning a sunroom, can be repurposed in a nurture campaign to reinforce key selling points.

For instance, a postcard emphasizing the benefit of enjoying the outdoors 365 days a year could be sent out. This method efficiently uses the information already present in the Idea Guide, creating a streamlined and cost-effective follow-up strategy.

The effectiveness of a nurture campaign becomes apparent when examining the case of a child psychologist generating 300 leads monthly. By implementing a nurture campaign, 54 prospects who initially did not avail the services convert into 2 additional clients within the next 30 days. This pattern persists, resulting in a substantial growth trajectory.

In the first year alone, the psychologist accumulates 3640 new prospects and 72 new clients through lead generation. Remarkably, the nurture campaign contributes a staggering 156 new clients. However, as success grows, there’s a logistical challenge in managing an increasing number of new patients. At this point, the lead generation efforts can be scaled down while allowing the nurture campaign to continue generating clients consistently.

Calculating the impact on a business, assuming a conservative 10% conversion rate for the nurture campaign, can yield impressive results. This strategic approach, unique in the market, positions the business for a substantial increase in sales and conversions. Even with conservative estimates, the potential revenue generated over 12 months could be a noteworthy percentage of the total sales revenue from the previous year. The exciting prospect is that this conservative estimate has the potential to double annually as long as the nurture campaign remains in place.

In conclusion, the power of a nurture campaign lies not only in its ability to convert prospects but in its long-term impact on sustained business growth. By consistently staying in touch with potential customers and delivering value over time, businesses can unlock a significant source of revenue that often goes untapped. The unique and strategic nature of a well-executed nurture campaign sets a business apart, making it the sole player in the market with such a potent sales strategy.

If not already, , I invite you to download the 12 Habits of Highly Profitable Businesses!  It goes into detail on the strategies we use with business owners to yield $100K-$500K in profits the first year.  If you’re open to sharing, I’d appreciate knowing which strategy really stood out to you as the fastest path to new profits for you and your company.

Appreciate you and have an awesome rest of your week!