Tuesday, March 7, 2017

Failure to Follow Up on Leads is Costing You Big Bucks

I had an interesting breakfast this morning with a social media marketing expert that brought up how failing to follow up on leads can cost modular home builders over a million dollars over the course of just one year.


That’s right...over a million dollars in lost sales. A One followed by Six zeros.

It’s not that builders are lazy. It’s not like they just wait in their sales office hoping for someone with cash burning a hole in their pocket wanting to build a new home will walk in. That’s not it at all.

Let’s be honest here for a minute! It is so easy to get caught up with sales, marketing, and serving clients that many modular builders forget to follow-up with leads. While important, it is such an easy thing to fall by the wayside if you’re doing it all yourself or not requiring your team do it as part of their job description.

If you’re like most businesses, you are losing major money in your lack of follow up. Here’s the top 5 ways you are likely flushing money down the toilet:

1. Not following up on referrals

A huge part of growing your business is utilizing referrals from past customers. You already have an advantage since they are finding you from a known source rather than a cold lead like one who found you through a google search. However, if you don’t follow-up with the referrals, you’ll never get the chance to make it to the next level and close the sale. Not to mention, you risk damaging the relationship from the person who sent the referral in the first place!

2. Not capturing contact info from visitors to your website or social media pages

Getting the traffic to your website is only the first step. If you’re not capturing visitors’ info, then you’re not capitalizing on that traffic. You need to engage your visitors with your initial material and use follow-ups to continue the relationship.

This applies to trade shows, open houses or other events as well! Every person you touch is a potential lead but if you don’t follow-up, the relationship is much more likely to fizzle than grow.

Getting someone interested in your homes by using Facebook is great if you can get them to visit your website and then give them a reason to engage with you so you can add them to your list of prospects. Otherwise you are posting stuff on FB to satisfy your own ego.

3. Not following up with new leads who were interested in your products but didn’t buy right away

You’ve probably heard the statistic before that it takes at least 5-12 touches before most people feel comfortable spending a couple hundred thousand dollars with you. So what happens when you’re not following up on new leads after the first email or two? Probably nothing!

If you don’t utilize a follow-up sequence, then you are losing out on a majority of those sales. CRM programs are out there at prices any modular home can afford. Just five lost sales this year could cost you a million dollars in sales.

4. Not instantly following up with new customers

When you purchase a product or service no matter how small, you want to receive something acknowledging that purchase. If you spend $900 for a big screen TV and the clerk doesn’t say “Thank You”, you almost feel like they didn’t care if you bought from them in the first place. You may possibly regret the purchase.

This “Thank You” follow up should be done immediately after your customer signs their contract to build a new home so they know you are excited to be working with them. Start that relationship off on the right foot! Put it in writing or call them the next day. That is what gets you referrals.

5. Not following up and rescuing lost customers

This is a big one that so many modular home builders overlook! What happens when a prospective new home buyer says your price is too high? Or they were turned down for a mortgage. If you’re not following up with them, probably nothing. You lose the sale because you simply gave up. But, if you follow-up, even for a short period of time, you may get another chance to keep the customer relationship strong and maybe, just maybe after they find the other builder’s price is higher or they downsize their dream home, they might come back to you. You have no chance of that happening if you simply stop all communications.

So, what’s holding you back from improving your follow-up and adding a $1,000,000 to your sales each year?

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