If your business model revolves around acquiring and converting leads, then maximizing your lead generation would be easily the most important aspect of your business model. In order to maximize your lead number, you should oversee, understand and tackle all the underlying reason that could be limiting your ability to generate a maximum number of leads.
Sometimes, your lead acquisition numbers may hit a certain number and simply plateau thereafter… Afterward, even your aggravated efforts may fail to improve your number of leads.
Here, you may ask “Why my effort is not working out or having the reverse effect?”
This simply means that you have reached the local maxima in your lead acquisition numbers. In this case, even your increased effort in ‘doing-more-of-the-same’ may fail to resolve the situation.
In this blog, we will discuss the concept of local maxima and how it could be applied to your particular business situations. We will also discuss interesting strategies that will help you sail over the local maxima’s and reach the lucrative big maxima point.
First, let’s understand the concept of Local Maxima
If you are pursuing to overcome your local maxima, it’s important to first understand the concept of local maxima.
Here’s a very brief overview of local maxima concept.
The local maxima refer to the point where your existing approach has reached a point of maximum utility.
In the graph, you can see the Point of local maxima that are winged by Point A and Point B which represents significantly lesser results. After reaching this point, all actions in either direction will immediately result in less optimal outcomes.
In actuality, you should focus on reaching the point of Big Max that represents a better outcome. In Seth Godin’s blog, he explains the concept of the local maximum in practical business situations.
All your productive endeavors will usually run into the wall of local maxima at some point in time. Whether it’s your fitness, business or even relationships, you are expected to hit the wall of ‘local maxima’ at some point in time.
But it could be most devastating in your business where you may be simply required to reach a certain revenue milestone.
You simply can’t afford your local maxima to constrain your lead generation capability. Otherwise, the local maxima would simply act to limit your lead processing capability.
Figuring out Local Maxima in Lead acquisition Numbers
The same dynamics of local maxima described above is also reflected in your lead acquisition behavior.
Let’s say that your lead acquisition number have remained in and around the same ballpark over an extended period of time. This means that you have conceivably reached a point of local maxima in your existing process.
Let me just show you a sample screen shot of a lead acquisition calculator from the vertical nerve.
According to the calculation, if you increase the lead conversion by 25%, it will directly increase your number of leads by more than 600+.
For this reason, you should focus on overcoming your current local maxima’s and achieve a 25% increase in lead acquisition rates.
In this blog, we will examine the different possible local maxima’s in your lead generation and how it may be constricting your lead generation. We will also discuss using a lead management system to overcome these local maxima’s.
Optimize the conversion for each Channel
In a normal business, you need to try out different marketing channels to attract maximum traction. As each particular business or website having their own particular attributes, you can’t simply get the best results by simply mirroring your direct competitor.
In this dilemma, the ability to focus on the right market channels will allow you to maximize the incoming revenue.
A lead management platform helps you oversee and evaluate the performance of different marketing options from a single dashboard. This allows you to instantly determine the running ROI for each channel. This will let you take productive measures that increase conversions and business acquisition.
By simply focussing on the particular channels, you will be able to immediately raise your lead count to a perceivably higher number.
This allows you to maximize your lead acquisition with the right channels that are actually preferred by your target audience.
Formulate a Customer Persona’s image
One way to improve the lead acquisition is through appealing to the right audience segment. This requires you to understand customer requirement and present the right marketing message.
This is achieved by creating the right customer persona. A right customer persona consists of audience information such as age and sex and related attributes such as favored lead acquisition channels and acquisition cost.
It also allows you to get an accurate sense of the right marketing approach to attract each audience segment. In this, the lead management system makes an effective measure to collect ground information about the customers.
When you collect information based on actual customer interaction, it means that you can build an informative database for your audience.
This will also enable you to avoid potential missteps in your marketing process that may turn out to be potentially costly in terms of time and effort.
Improving the Response Speed for each lead
This may albeit seem not directly related to increasing the total lead count. But studies have found that responding to incoming leads is an important metric in acquiring revert customer responses for your effort.
This consequently affects your customer satisfaction.
If your customers are happy, they tend to recommend your product and mention your business in social media and other internet platforms.
This will lead to more referral and social leads. Consequently, this approach will also help you generate more leads in the associated marketing channels.
Understand the channels which leak your money
The main purpose of the lead management platform is to attribute and track the total revenue.
If your particular revenue channels are not underperforming, you can find the reasons to optimize these channels or choose an alternate option.
Increase the Number of Marketing Channels
If you are looking to rapidly improve your lead count over a short period of time, increasing the number of marketing channels is a no-brainer decision.
This means that your target customers have multiple options to find your business and vice versa…The low-cost advertising lets you focus on maintaining the edge and cater to individual marketing channels.
But it’s often the logistics of campaign management and channeling individual campaigns that may limit the ability to generate a maximum number of leads.
A lead management platform will allow you to cover a higher number of channels within your particular marketing budget.
For example, you could form a list of your different marketing options and prioritize them concerning marketing budget. Conclusion:-
When your business reaches local maxima, scratching your head or even hiring an external agency may not be the best course of action.
In this situation, you need to take drastic actions that could immediately boost your lead acquisition numbers. By implementing a lead management system, you can evaluate and measure each aspect of your lead acquisition and management processes. This allows you to take the right measure to immediately improve your lead acquisition numbers.
Kapture CRM is one of the winners of the Google Launchpad Accelerator programme. Our Custom Lead management system helps business to maximize their lead processing.