How do you know when your lead generation tactics are no longer working or effective? This is the problem that plagues many businesses, both large and small. When the survival of your business depends on generating new leads in a timely manner, it is helpful to know when to audit your lead generation tactics. Since an audit can take long and be expensive, however, you need to know when the best time to do it really is. Thankfully, there are a few things you can monitor for signs of ineffective lead generation tactics.
The Pool of Possibilities Is Shrinking
Sometimes, good lead generation is all about the numbers. The more potential leads you have, the more you can qualify and filter them. Unfortunately, it is common to experience a drastic decrease in the number of potential leads you can generate and target through different channels.
Usually, the shrinking pool will depend on the type of lead generation tactics you are using. For example, if you primarily generate new leads through email or online marketing, you may find the recipient list or target audience is growing smaller and smaller. This can be due to an exhausted pool or changing demographics as more people slip out of the group you have been targeting. Pay attention to the numbers you have access to with your lead generation tactics.
A Lack of Quality Leads
With lead generation, it’s not just a simple matter of quantity. Good lead generation tactics help you filter out the good from the bad. Beyond qualifying the leads yourself, these tactics can automatically help by targeting the right people from the very start. Ineffective or exhausted lead generation tactics often decrease the effectiveness of this filtering. In other words, you will find it harder and harder to tell which leads are good from the generation tactics themselves. You may have to do more research or communicate with the leads more to personally evaluate them.
Shrinking Response Rates
More than anything else, one of the best ways to gauge the performance of your lead generation tactics is with the response rate. No generation tactic is effective if it doesn’t promote people to communicate further with you and your business. A lead generation campaign that starts off strong with a high response rate can experience a sharp decline over time if left unattended and unmonitored.
Once again, the type of response you should monitor will depend on your particular lead generation tactics. Direct response tactics such as email and social media are easy to evaluate just by counting the number of responses you receive. Indirect response tactics, such as your website, will often rely more on calls to action than direct communication. In this case, you will need to monitor the actions customers take after encountering your content.
Do they ignore it? Do they click on the links you have created? Do they eventually contact you directly? If you’re answering “no” to any of these questions, the response rate of these indirect generation tactics is probably lower than you would like.
Leads Start to Fizzle Out
Lead generation tactics can be flawless for getting your foot in the door of a new business avenue and still fail. Ultimately, a lead that does not actually lead to more business is a failure. These are common, no matter how successful your lead generation tactics are. However, a gradual or sudden increase in these failures may be a sign of trouble. A part of the issue is the lack of quality leads. Even when a lead responds to your communication efforts, it is not always the best result. If the lead lacks the decision-making power or connections to move you further along, your efforts will be wasted.
Other times, fizzling leads are the result of follow-through. Your initial communication efforts may be working but follow-up communication may be confusing. When this happens, you may need to start again with the content to update or streamline the persuasive aspects.
Taking Action with an Audit
If you find signs that it’s time to audit your lead generation tactics, begin as soon as possible. A lead generation process that is allowed to continue, manually or automatically, when it is no longer effective is just a waste of time and money. With the proper audit, however, you will be able to take the time to find the issues before they do major damage.