Why More Leads May Not Be Your Answer - The Case For Lead Conversion

Patrick McFadden

Recently, one of our clients decided to decrease the amount of revenue generated from a specific vertical in their client mix and focus on the most profitable types of clients for them.

With that decision, the thinking of the CEO was to increase lead generation from this profitable client segment to make up the revenue.


But when I reviewed the call tracking and leads report from months/years past (benefits of working long-term with a marketing partner), it showed enough volume already to achieve 2022 revenue goals.


Turns out that in years past the least profitable vertical was eating up the staff’s capacity to schedule and serve the most profitable clients and effectively convert prospects to clients.


So more leads were not the answer here, what this company needed was more capacity and a revised lead conversion (sales) process to convert what was already coming in.


The Case For Lead Conversion

Drop me inside of a small business with 30 days or less to increase profits and I can tell you without any advance prep work that the first place I would look for low hanging fruit is the lead conversion process.


Let’s do a little basic business math to help you understand why this is so.


If a business is generating 100 leads a month and turning 10 (10 percent) of those leads into $1,000 customers – that’s $10,000 in business.


Let’s say I increase the leads generated through a marketing campaign by 25 percent. (Something that might require significant investment to do). The result is $12,500 in new business.


Now, let’s say I instead focus that same energy on turning more leads into customers and eventually more customers into repeat customers and referrals.


If through a couple of tweaks (that’s usually all that’s in order) I can get the lead conversion to go from 10 percent to 15 percent, the resulting new business would be $15,000.


Never mind that a focus on lead conversion would probably force you to focus on a better customer experience, which would result in more sales, more leads and more referrals.


In fact, in my experience the lead conversion and experience mindset usually allows an organization to increase both leads and sales without the additional expense of a lead generation campaign alone – meaning seriously multiplied profits.


Contact your marketing consultant at Indispensable Marketing

If you’re a small service based business looking for a marketing partner who can offer strategic insights like this or needs help showing up on the first page of search results on Google, Bing or Yahoo at Indispensable Marketing we can help. We offer marketing strategy consulting, marketing audits, monthly marketing packages, consultations, exploratory calls or monthly local SEO servicesContact us for more information.


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