HOT Leads Will Multiply Your Business Revenue!
It’s Saturday at the time of writing this and oh boy what an amazing week I’ve had. It’s been non-stop since Monday morning, but I’ve been loving every second of it.
But this post is not about what I did or how good of a week I’ve had, this post is about bringing you some value.
And I’m going to do that by sharing a piece of advice that I got constantly throughout this week.
This piece of advice truly is the key for any business owner looking to close more sales in less time and a lower acquisition cost.
Let me first explain how I got this piece of advice and who I got it from.
At the start of the week, I set myself a goal, well two goals in fact.
Goal 1: I’ll talk to and meet as many new people as possible.
Goal 2: I’ll try and find out if I can serve any one of these people in any way and at the end go in for the ask and ask about their number 1 piece of advice for getting new customers.
I’m proud to say that I achieved both of my goals. More specifically I got some solid advice, new clients and met over 25 new people.
“Okay, Benjamin, we get it. You’re good at networking. Can you just share the advice you got already?”
Absolutely, here it comes.
As I mentioned I talked to over 25 people and when asking each and every one of them about advice for customer acquisition, they all gave me a very similar answer.
Focus on HOT Leads instead of cold ones.
Let’s break this down…
What’s a Lead?
In simple terms, a lead is an individual or a business expressing interest in your service or product.
The interest is commonly expressed by sharing contact information or simply asking questions about the service or product you offer.
In even simpler terms, a lead is a potential client who has expressed interest in the past.
“Ok, now I get what a lead is, but what does the temperature of it have to do with sales?”
Cold, Warm and Hot Leads, What’s the Difference?
There are 3 types of leads, cold, warm and hot. The easiest way to differentiate between them is to link them to the customer’s interest level.
The warmer the lead, the higher the chances of the potential customer purchasing our product or service.
Ever received a random phone call from your phone carrier trying to get you to upgrade your plan? If you did, you were a cold lead.
You were a cold lead to the company, because you didn’t express any interest in their new phone plan, yet they still tried and sell to you.
Chances are you hung up before they even got the chance to talk or you simply turned them down.
Cold leads are the easiest to get, but unfortunately also of the lowest quality. They’re leads with the lowest closing rate.
Signing up for an online newsletter regarding an upcoming product is the prime example of a warm lead.
A customer has shown his/her interest to the company and provided them with their email, phone number, mailing address, which can now be used to convert them and get them to buy the product or service.
Warm leads have a much higher closing rate than cold leads, but they still lack a crucial component. Urgency.
These are the best kinds of leads. They have all the components including urgency.
Hot Leads represent potential clients that have shown interest in your service/product, pricing, asked questions or expressed their need for your product/service.
Not only are these leads the easiest to close, but they’re also the best to do business with.
Generally, the less you have to sell and persuade someone, the easier and more enjoyable doing business with them will be.
Why You Should Prioritize Hot Leads
This question has a very simple answer.
Of course, we realize the advantages of hot leads…
Hot leads are the easiest to close and usually end up bringing in the most money. But that’s not the only reason why you should prioritize them.
To make my point, let’s look at an example.
Let’s propose you have 2 employees working in sales.
Becky specializes in cold calling and makes about 300 cold calls per day with an average close rate of 1%.
Penny, on the other hand, focuses on past customers and their satisfaction. After she makes sure they’re over the moon with the service/product the company delivered, she goes in for the ask.
But before she does, she does a bit of research on that person/business. She thinks about what kind of network they have and who from their network could benefit the most from the product/service her company sells.
Then she goes in for the ask and mentions what kind of person the company is looking for. She does this 10 times a day with an average conversion rate of 82%.
If you were the CEO of that company and you could only employ one, would it be?
Becky, closing 3 sales per day…
Or would it be Penny, closing 8 sales per day and building better relationships with existing customers?
I think the answer is clear.
Why Hot Leads Work So Well
There are many reasons that can explain this question, I’m going to share 5.
I’m going to share 5 reasons why hot leads are the absolute key to better customer acquisition.
They Create an Expectation
When your friend buys a new phone and keeps on telling you about all the new features, how are you going to feel?
You’re going to want to buy the phone.
Due to him being your friend and you trust his opinion, you’ll be excited about the features too.
It’s exactly the same in business. When a friend (or a business acquaintance) whom you trust, calls you up and recommends a service or a product to you, you’ll inevitably trust their opinion.
The Snowball Effect
If you’re a regular reader, you know about my obsession with the law of compounding and guess what…
The law of compounding works in customer acquisition too.
You go for the ask and one of your satisfied customers gives you a referral. You close the referral sale and deliver exceptional value to them.
After making sure they’re over the moon, you once again go in for the ask.
There’s an 82% chance that they’ll give you a referral.
It’s a never-ending loop, that keeps on growing and growing as long as you keep delivering value to your customers.
Very Little or No Cost at All
When you go out and get in touch with one of your satisfied customers, the acquisition cost is near zero.
You’re not spending any money on advertising or paying hefty amounts for long hours of cold calling.
You Make Your Client Feel Special
Another excellent benefit of asking for referrals/hot leads is the way it makes your existing customers feel.
When you ask someone for a favor, you make them feel important…
You make them feel important because you know they have an impact on the business world/society…
And there’s nothing more satisfying than feeling like an important part of your community.
Increased Closing Rate
As mentioned before, the average close rate when selling to a referral is a skyrocketing 82%. I think that number alone is the sole reason why you should prioritize hot leads in your business.
Your Number One Asset for Finding Hot Leads
You may be wondering, but how do I get my hands on all these referrals?
Well, it’s quite simple… Let’s read one of my all-time favorite quotes.
“The more hands you shake, the more money you make.”
Building up your network is your biggest asset for finding hot leads.
More importantly, building up a list of satisfied customers.
The bigger the list, the bigger the chances of getting new referrals.
And remember, as soon as you get a referral and you deliver the value and make them happy, they go straight onto that list as well.
At the end of the day, as long as you keep delivering value, exceeding people’s expectations and not being afraid to ask, you’ll always keep on growing.