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Responding to Leads Within an Hour Generates 7x the Conversations

 

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There was an interesting stat out of Harvard Business Review on the importance of timely responses when it comes to following up with online leads.  The data originally came from a study of  2,241 U.S. firms led by a researcher at South Korea’s Sungkyunkwan University. According to the report:

“Companies that try to contact potential customers within an hour of receiving queries are nearly 7 times as likely to have meaningful conversations with key decision makers as firms that try to contact prospects even an hour later. Yet only 37% of companies respond to queries within an hour.”

It’s incredible.  That’s how fast customers move.  How fleeting the attention span is. So how do you make sure that you’re getting back to customers within that rapidly closing window?

Get Your Sales Team an Espresso Machine

The best point of contact is a personal one.  Whenever possible someone from your team should be on top of providing that first welcome to your company or product.  How you handle that interaction is also critically important.   Reaching out to customers when the subject is most relevant is key, but you don’t want to rush or pressure anyone.  Make sure that that introductory touch point is a positive and informed one.  (Incidentally, there was an interesting discussion in the comments section of the HBR article about this).

Set Up Alerts Tied to Given Customer Actions

Part of responding to leads quickly is having the right tools to do so.  There are two things here that are important.  Speed and Relevancy. Some activities are the equivalent of a customer hand-raise. When that “hand-raise” happens you need to be at the ready to respond. Do you know when a potential customer has viewed your pricing page?   How quickly does your team find out about customer inquiries?

Speed is critical, but a rapid call-back without context can be a harsh experience for customers.   The best way to make that first conversation a positive one for the customer is to make it relevant. Make sure you have the analytics set up to show you what pages a customer viewed before requesting a quote.  In addition, your understanding of that customer experience prior to inquiring should span beyond the boundaries of your website.  Did they receive a targeted email from you? Have they ever requested assistance from your help desk?  What led them to this point?

Automate Tailored Responses

An auto-responder can be a good back-up when an immediate personal response isn’t possible, but only if it’s not a canned response.  Make sure your auto-responders are personalized and reflective of the experience your customer has had up to this point. You could segment customers by the information they provide in the inquiry form or by their past purchase behavior.  With HubSpot's new behavior-driven communications tool, you can also take it further by triggering tailored emails and notifications based on the pages customers have visited on your site or specific actions they have taken across channels, including social media, email, mobile etc.

I’m curious to hear about your perspectives on the Sungkyunkwan study.  When do you think is the best time to call a lead after he or she has expressed an interest in your company?  What information is important to know prior to making that call?

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Posted by Meghan Keaney Anderson on Fri, Jul 29, 2011 @ 08:01 AM

COMMENTS

From my own spectacular experience a few years ago, getting back to people within the hour is vital. If not, they will have gone elsewhere by the time you call them "later" 
 
Nothing more to add, it's correct!

posted on Friday, July 29, 2011 at 8:20 AM by WebCriticUK


This article helps to confirm why so many dealerships are having success adding live chat to their website - it gives a potential buyer the opportunity to connect with the dealership immediately. Whether the dealership manages the chats internally or has a reputable, automotive-focused company helping them it can be the best couple of hundred bucks a dealership spends each month. 
 

posted on Friday, July 29, 2011 at 10:14 AM by Bill Pardue


The study validates what Televerde has known for a long time. Timeliness and relevance of a reply to a new lead is essential. An MIT study a few years ago revealed similar results. With today's short attn spans and "need an answer now" mode of business, speed is critical. As is relevance, so use the BI you have on individual and corporate prospects before you make the call back.

posted on Friday, July 29, 2011 at 10:28 AM by Larry Fleischman


We have found that if you are fast and first you have a huge competitive advantage. You disrupt the search and establish credibility by being so responsive. 75% of internet leads who buy do so from the first company to call them. Here are a few more lead response tid bits; 
 
The first business to contact a lead increases conversion by 238%, according to a LeadQual study.  
 
• Leads called within five minutes have a 194% better chance of conversion.  
 
• A Kellogg study found that the odds of reaching a lead increase 100% if called within 5 minutes vs. 30 minutes.  
 
•The study also found that the odds of qualifying and converting a lead increase 21 times if called within 5 minutes vs. 30 minutes.  
 
• Approximately 35% of leads are reached on the first call and up to 72% are reached on the second call, but 48% of leads never get a second call. 

posted on Friday, July 29, 2011 at 11:21 AM by Sammy James


EXACTLY! For auto dealers there is a brand new service called AVA (Automated Virtual Assistant) that takes it to an entirely new level.  
 
Using military-grade artificial intelligence, to engage and communicate with each lead to verify buying intent and schedule phone appointments with dealership personnel – all without human intervention. By automating the “best-practices” of the most successful dealerships, AVA professionally and consistently establishes and builds a relationship between the dealer and customer. The critical component to AVA’s artificial intelligence is its ability to decipher responses from consumers and take appropriate action based on a consumer’s reply. 
 
I work with the company doing marketing for AVA.  
 
If you're a car dealer owner or GM, send me an email at david@robertsonmarketing.net and I can arrange a personal introduction to AVA (demo) with the company's owner and president. 
 
Here is a

posted on Friday, July 29, 2011 at 11:51 AM by David Robertson


Any correlation to phone versus email contact? I try to have our sales people call on the telephone...but wonder if there are statistics that compare how conversions go based on the type of response. Email is not as personal in my opinion, where a phone call is.

posted on Friday, July 29, 2011 at 2:58 PM by Parker


Hey Parker, with the AVA product you there are 3 stages so you can see the metrics of how the conversation goes. A few points:  
 
1) 70% of a can salesperson's time is spend leaving messages, chasing down the prospect.  
2) There is a very high percentage of prospects who believe they are corresponding with a real person from 'customer service, not sales. 
3) Consistently, prospects are giving the CSR (AVA) detailed info that helps the sales rep meet the need and close a sale 
4) Customers that engage/shop/research online are comfortable with email 
5) AVA tees up the sales rep so the prospect eventually connects with a real person 
6) The sales reps get a 'personal assistant' that consistently follows up appropriately and tees up their appointment calls; PLUS, AVA doesn't cut into their sales or commissions.  
 
dr

posted on Friday, July 29, 2011 at 3:45 PM by David R


I'd have to agree with your article here. Leads that are acted on swiftly usually generate a positive conversion.

posted on Friday, July 29, 2011 at 4:14 PM by Justin Dupre


so we can get the 7x conversion if we response in an hour? that is cool but that for people have mel list is good but i don't own that. so is okey for me.Langsing  

posted on Friday, July 29, 2011 at 10:08 PM by didik anak


I absolutely agree. Every time I have failed to follow up immediately, it showed in my results. ALso, one of my pet peeves is filling out a Customer Service Request form online, only to be sent an autoresponder message that has little/nothing to do with what I asked (it was sent just because of the key words I had used). When that happens (and it often does), I usually fire back a message that says, "Could someone PLEASE personally respond to me outside of an autoresponse message?" If nothing happens, I move on, cancel my business, and take it elsewhere. Why? No phone number to call. No way to get service. Why should I stay on as a customer then? Just my opinion. :)

posted on Saturday, July 30, 2011 at 6:52 AM by Christina Dodson


I totally agree. However, is it applicable to all industries?  
 
My family has a small business and i do get back to customers almost immediately and it works. 
 
I also work for a school of business and if i do that, people will feel like we are stalking them, so we get in contact with them between 2 - 3 days after their first enquiry.  
 
They don't make a decision about joining our program inmediately, they prefer to do their homework and then make a decision. 
 
Any advice would be much appreciated. 
 
Thanks 
 
Darien

posted on Monday, August 01, 2011 at 9:03 PM by Darien


Nice article, and i am totally agree with you.

posted on Monday, August 08, 2011 at 6:51 AM by WebTechTuts


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