“Translated, that means (conservatively) you lost $50,000.00 of potential revenue in one year. And, of course, that number could be more…”
Converting Prospects Into Clients
The Prospect Phone Interview is sometimes a very challenging part of business for many pet sitters. They have lots of questions out of the gate:
- What do I ask to screen the client?
- What information do I need?
- How close to the Prospect’s departure date should I schedule the Meet & Greet?
- What information does the Prospect need?
- What do I do with my forms?
- Are there any legal requirements for my forms?
- When should I collect payment?
- How does my payment policy affect my cash-flow?
- How do I best convey my policies to Prospects?
- Etc., etc.
As important as these questions are, there is one thing that many pet sitters don’t consider when thinking about the Prospect Phone Interview: the importance of the phone call itself. That is, the most important question is:
“How do I convert Prospects into Clients?”
Converting Prospects into Clients is the whole ballgame. Some pet sitters do the Prospect Phone Interview well, some wing it and everyone, without exception, is missing opportunities. Is missing opportunities a big deal? I’ll let you be the judge of that; you’re the one paying for Prospects to call you. That phone call costs you money, right? The cost of that call is an expression of your number of leads to your marketing expense. Now, before your eyes glaze over, let’s look at an example of what I mean.
You spend $2,000 on your annual marketing expense.
You field 150 new Prospect phone calls a year.
Of those 150 Prospects, you convert 50 into Clients.
So, your annual marketing expense (2K) divided by your number of Prospects (150) gives you your cost per/Prospect: $13.33/each. That, mixed in with some other factors, is how you determine your Client Acquisition Cost.
So each person that calls you (using the above example) costs you $13.33. That’s a pricey phone call. Are you entering those names and numbers in a database to follow up? Do you even have a database? If you do have a database, do you have a follow-up system in place aimed at converting Prospects into Clients?
When You’re Not Converting Prospects Into Cleints
Here’s the interesting thing to consider: What’s the average revenue generated per client, from the fifty clients you landed? You’d be surprised how many pet sitters don’t know. For conversation’s sake, let’s just pick a conservative number. Let’s say the revenue those 50 new clients generated that year was $25,000. That means the average annual revenue each client generated was $500 each.
Translated, that means (conservatively) you lost $50,000.00 in potential revenue in one year…with the 100 Prospects you didn’t convert into Clients. And of course, that number could be more or less, depending on your actual numbers.
That $13.33 phone call is sounding more important now, isn’t it? So there’s lots of important questions to consider when thinking about how to conduct a Prospect Phone Interview, however no question is more important than the question of Conversion, i.e, turning those Prospects into Clients.
This series of blog posts will share key terminology and concepts used exclusively by The Carewright in educating pet sitters on how to convert Prospects into Clients.
© 2015 | The Carewright, LLC. This blog post is the intellectual property of The Carewright, LLC and cannot be shared or used for derivative works without the express written permission of The Carewright, LLC.
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