How Does Lead Tracking Increase Revenue?

Data Team, Content Team and Upper Management

In today’s consumer-driven economy, lead tracking is used to inform customer experience, marketing efforts and employee performance. Tracking has become an integral part of business operations. And it is essential to making educated decisions.

Companies who utilize analytics and data show productivity and profitability rates 5-6 percent higher than their peers.


So How Does Tracking Increase Revenue?

 

Better customer experience.

 

Every major customer relationship management (CRM) tool utilizes lead tracking. It is impossible to know how your team is handling business unless you track their customer interactions.   

Monitoring client contacts is much easier today than it was a decade ago when web forms first became a new lead source. Before web form tracking, companies would spend millions of dollars on Yellow Pages. And collected nearly all contacts through the phone.

There was so much excitement for these web forms because they worked 24/7 and were easy to route to the appropriate people. This new lead source quickly grew to nearly 50 percent of the contacts in the system.

But then the smartphone arrived.

Smartphone adoption has now surpassed 80 percent. And its impact in customer contacts has put renewed emphasis on call handling.

Users now spend more time with smartphones than desktop computers. Smartphones allow consumers to have a powerful search tool right at their fingertips.

Fig 1: Source: https://www.comscore.com/Insights/Blog/Smartphone-Usage-Has-Doubled-in-the-Past-Three-Years

In 2017, phone calls made up 67 percent of our clients’ tracked contacts. And that only includes the tracked calls. Those numbers have been steadily increasing ever since.


Better online reputation.

 

Your online reputation informs the purchase decisions of potential customers. This reputation includes number of reviews, average star rating and the way you respond to customer feedback.

When it comes to choosing which business to call, potential clients research local businesses online and use customer ratings and reviews to guide their decisions.

Google, Yelp, Facebook and other review platforms are highly visible to the public. In addition to looking at the highest and lowest-rated reviews, customers want to know how a company will respond to complaints and feedback.

In the example below, consumers would have more information from the first listing with 92 reviews and a 4.9 star rating compared to the other two listings with only three and seven reviews.

Fig. 2: Source: Google Maps

In addition to consumer-facing metrics, review tracking gives managers a line of sight into customer experience. And the performance of their employees.

Using customer feedback and sentiment, managers can isolate the biggest pain points and address issues for current customers. It also helps prevent issues for new customers.

For example, if the overall user sentiment is that customers don’t receive responses to calls or emails in a timely manner, that issue can be easily discovered through review tracking. And then subsequently addressed.


Better accounting.

 

Tracking contacts to sales allows you to determine the quality of contacts by source. As well as calculate your cost per acquisition and cost per closed deal.

This thorough tracking allows you to see which days and times have high call volume or result in more appointments. Which can help reduce operational costs and determine how best to properly staff sales and service representatives.

Tracking products that have higher sales at different times throughout the year, allows your team to order the right amount of stock at the right time. It also ensures that your team is promoting the right products when demand is the highest, leading to improved percentages.

Fig. 3  The Time of day that web users visit your site.  Phone call patterns follow the web patterns. Monday, Tuesday and Wednesday mornings from 6 a.m. to 10 a.m. see the highest traffic. Staff your business accordingly.  Source: Google Analytics


Better business decisions.

 

Better business decisions start with better data.

Regardless of the tracking system used, the quality of data comes down to the accuracy and consistency of data entry. Too often data responsibilities fall into the hands of new hires. This leaves us often relying on data that hasn’t been logged properly, if at all.

In addition to proper data entry, properly tracking follow up with contacts result in higher conversion rates. It is a best practice for sales forces to follow up.

In a report titled, “Sales Lead Response,” written and researched by Velocify.com, it was determined that sales leads were not converting as a result of sales representatives giving up too soon. Or not even trying to contact the potential customer.

Through tracking they found:

  • 33 percent of leads never received a call.
  • 91 percent of leads didn’t receive an optimal number of calls (most converted leads are contacted by the sixth call).
  • 95 percent of leads didn’t receive an optimal number of voicemails (you are 34 percent more likely to convert after leaving two voicemails - but leaving too many voicemails can be worse than not leaving any).
  • Calling a lead within one minute of an inquiry more than doubles conversion rates, but only 7 percent of prospects received a call within one minute.

The KennedyC Data Team

 

When we built our data team, we made a commitment to be more than a marketing agency - we doubled down on being a marketing and business partner.

Data is flowing everywhere.

Our mission is to make sense of this data in order to help you improve your business and bottom line.    


**A previous version of this article was published in the CDANA catalog.

 




Sources & Resources:

https://hbr.org/2012/10/big-data-the-management-revolution

https://www.smartinsights.com/mobile-marketing/mobile-marketing-analytics/mobile-marketing-statistics/

https://hbr.org/2012/10/making-advanced-analytics-work-for-you

https://www.inc.com/gordon-tredgold/7-ways-data-analytics-can-boost-your-business-growth.html

https://www.ibm.com/developerworks/community/blogs/c8afc305-d5ca-4a4f-9542-68c96118ea2e/entry/Impact_of_Analytics_in_Financial_Decision_Making_Evidence_from_a_Case_Study_Approach?lang=en

https://www.entrepreneur.com/article/243450

https://www.thebalance.com/how-to-answer-the-phone-properly-2947153

https://www.convirza.com/blog/basic-call-tracking-metrics-follow-best-leads

https://www.mediapost.com/publications/article/302660/getting-from-sales-lead-to-response.html