Imagine that you’re standing on soft, green grass with the sun shining warmly on your shoulders.
Today, you’re planning to do some archery. You have a bow in one hand and a fistful of arrows in the other, and in every direction, lovely rolling hills obscure your view of the landscape.
You don’t know exactly where you are, and with the lay of the land, you can’t actually see your archery target…
But you know what it looks like!
You also know that it’s somewhere nearby – definitely within shooting distance – and you, of all people, are certain you can hit it despite your sightless start.
Cheerfully, you fire off arrows in several different directions, hoping to hear the thunk that means you’ve hit.
From time to time, you do hear that satisfying sound. (Technically, you don’t know for sure that you’ve actually hit your target, but you’ve certainly hit something that sounds like a target, so you feel pretty good about it.)
Does this sound reasonable to you?
If you think this is a strange way to practice archery, you’re right. Archery works best when you know where you’re standing and you can see the target at which you’re aiming.
Then again, so does business.
Operating your practice without a solid tracking system in place is the financial equivalent of standing in a valley and firing arrows in every direction, hoping to hit something.
Sometimes, you hear the thunk: you book a client and make some money, but if you don’t know how much you actually spent to attract that new client, how do you know if you’re really hitting your target?
Lack of Lead Tracking Costs You
Tracking your metrics seems tedious, and it’s easy to dismiss it as an unimportant activity. After all, you’ve got plenty of other responsibilities to handle for your practice.
Plus, you’ve got a staff that keeps telling you that the extra work is too much!
However, would you dismiss $238,000.00 as unimportant?*
*There’s a case study later in this post that explains from whence that number comes.
When you continue to operate without effective tracking parameters, you’re losing money through:
Misappropriation of funds – You’re spending money on marketing. Shouldn’t you know how much money comes in for every dollar spent?
It makes sense to put more money into activities and channels that are generating high returns, and to stop spending frivolously on things that aren’t getting adequate results.
Misappropriation of time – Time isn’t money. Time is infinitely more valuable. When your staff spends time doing “work” that isn’t efficient, you’re wasting both.
How much difference would it make if you knew exactly which of your staff members were the most and least efficient?
Missed opportunities – If you’re not tracking, you’re losing leads. How much money do you forfeit for every single lost customer?
You probably already have a list of people who could easily become paying clients – people that would cost you $0 extra to contact and convert – and yet, you’re still throwing money into your marketing budget trying to expand your practice.
Here’s the thing about knowing your metrics:
What You Track, You Can Improve
Think back to that archery story from the beginning of the post.
Lead tracking is the equivalent of coming out of the valley, standing on top of a hill, and taking careful aim at the target you want to hit. Now you hold the marketing high ground.
Sure, you might not have a 100% success rate at hitting the bullseye, but you’re going to be on target much more consistently, aren’t you?
Effective use of lead tracking software helps you:
- Gauge the success of your marketing campaigns
- Keep your team accountable
- Make your employees’ work processes easier and more efficient
- Easily see where you can improve your clients’ experiences
- Reduce the number of leads you lose
- Sell more premium products and services
- Reactivate and reach leads that have gone dormant
- Improve conversion rates
- More accurately predict future income
- Attract more word of mouth referrals
- Make more money
A Word About Word Of Mouth
We’ve seen this trend again and again:
As your marketing campaigns get better and focus on the right people, your traffic from referrals and word of mouth increases in proportion.
It makes sense, doesn’t it?
Your customer list grows from your paid marketing efforts, and a greater number of customers naturally means a larger number of satisfied clients to tell their friends and family.
What doesn’t make sense is the trap most practices fall into.
As referrals rise, some practices shut off the marketing because they over-attribute word-of-mouth success – success that is coming from people consuming ads and asking friends for validation.
This is business that would come in a much lower rate without the advertising. Then, in 60-90 days, the businesses that cut marketing can’t figure out why their volume is down, so they restart the marketing cycle.
But a word of caution:
If you’re marketing to the wrong group of people, a smaller percentage of your audience will actually become clients, and out of those people, an even smaller percentage will be inclined to refer new business your way.
Good lead tracking makes it instantly obvious where you’re getting the most value from your marketing dollars.
Pay attention to your metrics, and you’ll increase your word of mouth business, too.
Lead Tracking Case Studies
These numbers come from actual practices that implemented iSee Metryx.
One practice, a Lasik provider, was doing pretty well.
Though they weren’t tracking their leads, conversions, or return on ad spend, they were performing about 20 surgeries each month and making a healthy revenue.
Analysis of their current numbers revealed some significant opportunities, though:
The practice was getting about 70 leads per month, and from those, they were booking an average of 40 appointments. Ultimately, those 40 appointments resulted in the final 20 surgeries performed. Their conversion rate was holding steady at 28% to 29%.
These numbers shocked management, who, without tracking, had estimated that they were reaching a much larger audience and converting far more leads than this.
With that clear view of where the practice was standing, we set out to improve 3 key metrics:
- The number of leads generated
- The no-show rate for appointments
- The overall percentage of leads that resulted in surgeries
Without tracking in place, potential clients that had called and expressed interest were being lost.
Follow-up was inconsistent, and we calculated that based only on the leads that were being neglected and dropped, the practice was losing a minimum of $150,000 annually.
iSee Metryx helped them identify and reactivate some of their dormant leads, which resulted in $48,000 in additional revenue that year and increased the number of appointments they booked from future leads.
Now that there was extra revenue, we set out to generate even more and better leads.
The practice purchased advertising from traditional sources, and quickly found that radio ads were generating the most new leads.
Thanks to iSee Metryx, we were able to determine that one particular radio station was generating 7X more leads than any other source – but we didn’t invest more money into that station.
Further analysis revealed that, although that station was producing a huge number of leads, very few of them resulted in appointments and surgeries. The people who heard the ads and expressed interest tended to be low earners with large amounts of debt, and they weren’t financially able to proceed with surgery.
That advanced tracking information saved the practice $70,000 per year in advertising expenses, because we were able to stop spending money to generate poor leads, and apply it to slightly more expensive sources that actually produced revenue.
After 12 months, the practice had made an additional $238,000, and their return on investment increased by a factor of 14.
A similar case study yielded even more spectacular results, with $520,000 in additional revenue and a 326X better return on their marketing investments.
Even small practices have seen significant gains by implementing iSee Metryx for lead tracking.
One practice found that they were losing between 3 and 5 leads each month due to unsatisfactory tracking, and each of those leads cost them between $500 and $600 to generate.
Their revenue for each successful conversion was about $5,000. Losing those leads was costing them between $13,500 and $28,000 every month, and not just in theoretical revenue – they were actually spending money on advertising, and then failing to use the leads that were already generated.
Implementing iSee Metryx made that practice at least an extra $162,000 per year.
It’s Not A Miracle
Lead tracking doesn’t make money magically appear in your bank account.
It certainly makes it easier to increase your profits, but ultimately, it’s only a tool. Hammers don’t build houses – carpenters do.
But can you imagine trying to build a house without a hammer?
Implementing a good lead tracking system isn’t any more work than trying to run your practice without tracking. It’s just different, not more difficult.
After all, to get better results, you’ll need better processes.
The results are worth the effort, aren’t they?
Originally posted 2017-03-28 16:08:50.