In order to find new potential customers it is important to know where these people are. Fortunately (or unfortunately if your business is not up to speed with modern online marketing trends) the overwhelming majority of people can be found on social media platforms; an observation that is statistically supported.
There are many users who participate in social media across several platforms, not just Facebook, Twitter and LinkedIn. Social media sites such as Pinterest, Instagram, Snapchat and Google Plus also have millions of users who are just as engaged and active.
Due to this, it is safe to say that social media is currently the optimum forum for mass interaction. However, a presence on social media is not enough.
Businesses and marketers need to know where to find their customers. And this is merely the first step in the social commerce journey! Many marketers who decide to use social media as a means of finding leads, may be confused how to do this when it comes to the actual implementation. But don’t worry, collected beneath are five tips to help marketers and businesses generate leads through social media platforms.
1Have a social media presence for your business
Unfortunately, some businesses are under the misguided idea that if they simply set up a Facebook Page and Twitter account then the fans will quickly follow suit.
This conclusion is erroneous. Simply put no social media users are going to follow a business who makes no effort to engage and interact with their following.
First you should ensure that your business has an account on all the major social media platforms relevant to your target customer. Once this important pre-step has been taken, the hard work begins.
To establish a presence and begin utilising social media networks as a tool to further your business it is important to post content regularly and continually interact with other users.
2Be human, not a robot
One of the key aspects of social media is the social element. People do not sign up to social media platforms so they can be directly advertised to in their leisure time. They join up so they can connect to other interesting human beings across the world around a range of topics of significance to them.
If you want to be accepted by these users you will have to appeal to them as a human. This may produce more difficulties than was initially anticipated.
A good place to start is to make a personal pledge that you will not transform your social media networks into an alternative mailing list.
Instead you should look for ways in which you can begin engaging your followers in conversation. Also, do not be afraid of letting your personal voice come out via your posts and content. In addition, when you receive any comments or feedback, ensure that you respond promptly.
3Provide your following with what they want
As a marketer or business owner you already know what you want from your followers, namely to convert them into actual customers. For the best results you should consider this scenario from the perspective of a potential lead.
Ask yourself, what these possible leads will want. Also consider the fact that if you are not offering anything to them, why would they bother to visiting your website, or become a fan or follower of you on social media? This is the essence of inbound marketing.
If you can work out how to provide perspective customers and leads with what they want, then you will not have to seek them out, instead they will find you.
You should provide your following with interesting and engaging content, which is also informative, but do not ask for anything in return.
A good way of doing this is by setting up a company blog which explores issues, problems and questions which commonly arise from your customer base.
Once this has been done, you should link it back through your various social media pages. When doing this remember to include a visual aspect to your activities.
It has been found that the human brain is far more effective at processing images than it is at processing text. It is well worth playing with infographics, memes, videos and photos to see what provides the best results.
4Link your social media to your CRM and sales
A Customer Relation Management system, or CRM, is becoming a key tool for businesses who wish to maintain good relationships with their customers.
This is done by keeping accurate information about the minute yet important information, details of appointments and other important customer information. The other part of this is ensuring that this information is then accessible.
When your business is using social media as part of its sales process to prospect for leads, ensure that your sales team is up to speed with the facts.
Accumulate information as you proceed and ensure that you have a CRM in place to analyse and share this information with members of your company who require it.
Working in unison with various departments and individuals within your business will ensure that you enjoy more success from the information you have accumulated. Meaning that you will not have to rely merely on the charm of your social media efforts to gain results.
If all other measure fail then do not be afraid to utilise a bit of persuasion. If you really want to gain public support for your brand on social media platforms, then the quickest way to do so is with some persuasion techniques.
This can take the form of a “contest”. Offer social media users the opportunity to enter a prize draw, however in order to enter they must either like or share your content.
If you offer something that people want you will see a large amount of people engaging with you in order to take part.
Five Ways To Stay In Control Of Selling Your Business
Even when you are ready to sell your own business, you need to maximise your benefit by keeping control of the sale process.
Each and every one of the many hundreds of business owners that I have engaged with over the years has always identified immediately with one key business strategy – the need to have control. After all, they became entrepreneurs to have control over their own business and business ideas, to control their cash flow and the growth of their business.
Yet, curiously, they often apply a different set of standards when the moment comes to sell that business. They do not seem to realise how quickly and how dangerously they can lose control.
The all-too-common scenario is that one day, out of the blue, a business owner is contacted by a “would-be” acquirer who is interested in buying the business. It is probably only in hindsight that they would pinpoint this as the moment when entertaining the approach meant that they lost control of the sale process.
From that moment, the potential acquirer will define the hoops through which the seller must jump before a serious offer is put on the table. The acquirer insists, for example, on full due diligence before a detailed offer is submitted. This leaves the business owner feeling overly exposed for an extended period of time.
But worse is often to come. Eventually, at the eleventh hour, the potential acquirer puts a ridiculous offer forward, based on all the “risks” they believe they identified in the due diligence.
The acquirer conveniently concentrates on the negative. They forget about the embedded value and future growth potential that the seller’s business will offer.
Or sometimes, they complete their due diligence and walk away. That leaves a baffled business owner watching them drive away from the premises – and left with nothing to show for the process but raised blood pressure and the haunting question, “WHAT happened there?”
These are unpleasant truths indeed – but ones that you can avoid. Such scenarios underline why keeping control is critical when selling your business.
This control is not about taking ego and arrogance. It is about taking an approach that is calculated and structured. That way you will drive the process on your terms and according to your agenda. And that critically will mean that you will be able to protect your confidential information along the way so you are not left feeling exposed at the end of the process.
Whether you are approached to sell your business or are proactively going to market to find an acquirer of strategic partner, always protect yourself with these five key tips:
1. Always have a plan
Your plan should encompass: the timeline, the terms and the rules of engagement between the acquirer and yourself moving forward. By putting your plan into place, you take and keep control of the process.
2. Interrogate the acquirer
Make sure that as early as possible in the process, you understand these factors driving the potential acquirer:
- What is motivating their interest in buying your business?
- Have they bought a business before?
- How would they value your business?
- How would they fund the acquisition?
If your potential acquirer has bought a business before, insist on speaking to the business owners who sold to them so you can find out about their experience of working with the company to complete the sale.
Ensure that a potential acquirer gives you a valuation formula upfront so that you can be sure you are both batting in the same ballpark. If you are able to speak with a previous seller, find out how the deal was valued and structured in that instance.
If your potential acquirer has to raise funding, insist on speaking direct to the funder to make sure they are fully committed – and that their valuation methodologies are aligned with what the acquirer is telling you. If there is a mismatch, it is the funder’s valuation that ultimately counts so you may need to engage with the funder.
3. Secure your offer before due diligence
Always make sure that your potential acquirer puts forward a non-binding offer before commencing with due diligence. Doing this will give you comfort that the acquirer is serious. It will also identify for you where the acquirer sees value in your business and what risks they perceive – and what risks there might be for you.
4. Ensure due-diligence terms are agreed
Always make sure that the terms of the due-diligence process are defined and reconcile back to the offer. Due diligence is another point in the process that confirms where your potential acquirer sees the value of your business and identifies risks. Commercial reality and practicality must drive the sale process so make sure you are not manoeuvred into being bogged down in the due-diligence list, which often consists of hundreds of requirements.
5. Always have a timeline
Your time is valuable so make sure that both you and your potential acquirer realise and respect that. Protect yourself with a timeline – you should define the milestones and deadlines of the sale process for your acquirer.
These five strategies will ensure that you retain control of the sale process, just as you have controlled your business development. That will mean that it is less gruelling for you and that you can be confident about selling on terms that you will look back to happily.
Low-Hanging Fruit: Why You Need To Be Selling To Those Dormant Customers
Remember those customers from the past? They may be willing to buy from you again (and again and again).
When I was a kid, I liked getting new toys. What kid doesn’t, right? And every time I got a new one, it seemed like the only toy in the world. I forgot all about the other toys I already had – I only wanted to play with that one.
The sales world is not that different – because of its focus on acquisition. Everyone wants those new customers, and they put all of their efforts there. But by doing so, they forget all about the customers they already have.
The problem is, you can’t let “new toy syndrome” affect your sales strategy. New customers are great, but you shouldn’t forget that other place where real opportunity lies: with your dormant customers, the ones who have already bought from you in the past.
Acquisition vs. reactivation
Companies spend tons of time and money acquiring new customers. But eventually those new customers become dormant. When that happens, most companies just go out and find more new customers. Yet that’s not really the most profitable approach.
If you have a huge dormant customer base that is being neglected, you’re leaving money on the table. And dormant customers are actually more valuable than you might think. According to research by Invesp:
- It costs five times more to acquire a new customer than to keep an existing one
- The probability of selling to an existing customer is 60 percent to 70 percent, while the probability of selling to a new prospect is just 5 percent to 20 percent.
- Compared to new customers, existing customers are 50 percent more likely to try new products and 31 percent more likely to spend more money
- When they increase customer retention rates by 5 percent, companies can increase profits by 25 percent to 95 percent.
- Despite the obvious benefits, Invesp finds that only 40 percent of companies it surveyed had an equal focus on acquisition and retention — and my guess is, even less focus on reactivation.
The value of dormant customers
There’s so much emphasis these days on leading a customer through the sales funnel and closing the deal; even the term “closing” implies an ending. But the sale shouldn’t be the end of your relationship with your customers.
If a customer has purchased from you in the past, you already know you’ve done something right. This customer already knows and likes your business – enough to have actually bought from you. So, wouldn’t it make sense that he or she would be likely to do so again?
The caveat here is that this willingness may depend on your specific product. If, for instance, you sell wedding products, customers will most likely buy from you for only a limited time. But for other businesses, this won’t be the case. Your products and services can be repurchased, or one purchase may be able to lead to the purchase of another, related product.
Whatever the case, you should find it easy to identify those customers with whom an opportunity lies to sell to them again (and maybe again and again).
A smooth sales process
Selling to dormant customers can actually be easier than selling to new customers. That’s because you’ve already done so much of the legwork already. There’s no need to do any kind of lead generation, for instance, because you already have the lead, along with much of the information you’ll need to sell to these people. That would include:
Contact information: You probably already have their email, phone number and any other information you need to reach out and restart the sales process.
Preferences: Because you’ve worked with them before, you most likely have notes on their preferences or any circumstances that could influence what they buy. Plus, you know what they’ve already bought, which should give you insight into what they might buy now.
Personality: It’s possible you’ve even already developed a relationship with a return customer. Customers like familiarity, and if they know you and have worked with you in the past, they’ll be more likely to take your calls and listen to what you have to say.
Implementing a reactivation programme
When you’re building out your reactivation program, one of the main things you need to learn is why these customers went dormant. Why did they stop doing business with you? Send surveys or ask directly; this will allow you to shape your strategy going forward.
While new customers are key to business growth, if you want your business to last, you also need loyal customers. One-time buyers aren’t going to be your best advocates. But those customers who keep coming back again and again are going to recommend your business to others and be exponentially valuable.
As a result, your reactivation programme – you have one, don’t you? – will be your first step toward nurturing those customers who may in turn become loyal advocates.
This article was originally posted here on Entrepreneur.com.
After Losing A R280 000 Deal, Here’s What I Changed In My Email Follow-Ups
Looking back, these are the things we could have done differently to win the deal.
A while back, I spoke with a potential customer who had an interest in working with us. We met a few times to review the proposal. We narrowed down the project scope and showed how our team could execute. There was definite interest. If we signed the deal, it would be worth $21 000 (R280 000).
But, there was one challenge: The time was not right. The prospect’s team was restructuring their business. That meant they would only move forward after that was complete. So, I put a note on my calendar to follow up with a call every month.
But, then a few months later when I called him, he said, “Kwesi, we just signed a contract with another vendor. You should have called me earlier.”
“What?” I said. “I had spoken with you a month before.”
“I know, but I didn’t remember,” he said. It was a punch to the gut.
What I learnt from the loss
That loss would become a significant learning for our team. When we reviewed why we lost that potential customer, we realised one thing; the key was in the prospect’s response. He didn’t remember us, even though I had ‘followed up’ a few weeks earlier.
We did not have enough compelling top-of-mind awareness. Yes, we followed up, but we were not sticky enough. We didn’t dominate the prospect’s mind share. If we were going to dominate, we needed to nurture, not just follow up.
Three things we do differently now
1. Make it (feel) personal
If you plug your prospect’s email into a fancy email marketing template, it rarely feels personal. Emails with fancy images and fonts don’t connect on a personal note. Instead, write your emails in plain text. Would you write an email to a friend or colleague using fancy email templates with bright colours? An email that feels personal is trustworthy.
Another smart way to do this is to start your email by referring to an ‘undeniable, confirmable truth.’ Communications strategist Ray Edwards describes why this is important in his book How to Write Copy That Sells: “One of the hurdles we have to overcome is scepticism and the fact that our readers often don’t believe us… or aren’t sure if they believe us.”
When you’re nurturing a prospect, you want to build trust. The more trustworthy you are, the more likely you are to get the deal. For example, we now start our nurture emails with: “Hi Joe — it’s Kwesi here.”
2. Tell a story of value
This is one of the critical email follow-up techniques we developed after losing that deal. Most of our nurturing emails tell a story. We tell stories about new ideas the prospect can use. We tell stories about lessons we’ve learnt from failing. We tell stories about our fears and hopes. Great stories evoke emotions that build trust. Humans have been telling stories for more than 20 000 years.
Researcher Paul J. Zak found that stories with great characters cause the release of oxytocin, the brain’s shortcut to ‘it’s safe to approach others.’ The more oxytocin your prospect’s brain releases, the more willing they’ll be to help.
Discussing his findings in the Harvard Business Review, Zak noted that “character-driven stories with emotional content result in a better understanding of the key points a speaker wishes to make and enable better recall of these points weeks later.” That’s why storytelling is sticky. It makes you more memorable.
Related: How can I manage my email inbox?
3. Be credible
The key to being credible is to show social proof. Nurture the prospect by sharing specific recent results of a similar client. I’m not talking about sending a lazy, generic email about a new client you signed. Craft a thoughtful story about a client’s challenges and how your team helped them.
Your social proof story can include these: What was the specific challenge? What were the emotional effects of the client’s challenge? How did your service or product help solve that challenge? What are the new emotions after the results you helped them get?
These three principles have become the foundation of our follow-up emails. We use them to build a nurturing sequence with prospects who are a fit, but not yet ready to buy.
The point is: Have a system to continue adding value to prospects who say it’s not a good time. You spend enough time to get prospects to meet with you. Put in a little more effort to engage with them with value until they are ready. Invest in your relationships for the long term. That way when they are ready to buy, you’ll be the first who comes to mind.
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