Marketers know that nurturing works, but have long wondered what is the optimal number of times a prospect must be communicated with to motivate them to make a purchase. The study demonstrates that touching a prospect only one time is okay, but doesn't convert as many prospects as two nurturing communications. The data also revealed that three or more touches is unproductive and hurts ROI
Cedar Rapids, Iowa (PRWEB) April 15, 2009
SmartLead® by The AdTrack Corporation, a full-service lead management company, released an analysis of nurturing programs implemented by a SmartLead client over the course of a year. The study shows that two is the optimal number of times to communicate with a prospect to persuade them to buy.
Nurturing is the process of sending a prospect multiple targeted communications to encourage them to buy.
"Marketers know that nurturing works, but have long wondered what is the optimal number of times a prospect must be communicated with to motivate them to make a purchase. The study demonstrates that touching a prospect only one time is okay, but doesn't convert as many prospects as two nurturing communications. The data also revealed that three or more touches is unproductive and hurts ROI," says Dan Rogers, chief executive officer, The AdTrack Corporation.
SmartLead, by the AdTrack Corporation, offers comprehensive lead management services for b-to-b and b-to-c companies.
The SmartLead client in this nurturing study manufactures home relaxation products that are sold through a large network of dealers. The company's average sale is $5,000.
The analysis showed that communicating with prospects just once converted 32.4% more prospects than no nurturing at all.
Compared to only one touch, two nurturing communications boosted conversion rates another 16.6%.
Executing two touches created $8,300,000 in extra revenue for this manufacturer, with an average sale of $5,000.
How? If one nurturing touch moved 10,000 prospects to spend $5,000 (creating $50,000,000 in revenue), adding just one more nurturing communication produced a 16.6% increase in conversions to create 1,660 more buyers for $8,300,000 in additional revenue.
Two touches were far more powerful than no touch at all and produced 54.2% more conversions than no nurturing at all.
But using more than two nurturing communications did not significantly raise conversions. When compared to using two nurturing touches, adding a third touch generated less than a ¼ percent increase in buyers. Using our example above, that's only 20 additional buyers and $100,000 in additional revenue.
The study's numbers showed it was downhill from there. Four nurturing communications produced diminishing returns. Compared to three communications, four touches reduced conversions nearly 10%. Compared to three touches, using five touches produced nearly 40% fewer conversions.
"The lesson here is that no nurturing at all is unwise. One nurturing touch is good. Two are the best. Three communications won't produce that much more in sales. Four or more touches may actually hurt you. It's not worth the expense; it hurts your ROI; and could potentially alienate your prospect," concludes Rogers.
Download a full copy of the SmartLead nurturing case study, which includes an illustrative chart.
About SmartLead and AdTrack
Since 1981, Fortune 500 companies with complex sales or dealer distribution systems have relied on SmartLead to simplify the Herculean task of managing thousands of leads from multiple sources. AdTrack's SmartLead process and integrated web-based lead management system and sales force automation system smoothly and seamlessly manage leads from the moment the leads are generated, through qualification, ranking, nurturing and distribution to sales people or channel partners. Clients include Toro, Motorola, Bobcat and Kodak.
SmartLead is the only company to offer comprehensive lead management services, including the SmartLeadPLUS lead management system with an integrated sales force automation system, a contact center, fulfillment/warehouse, print services and data analysis.
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Contact: Judy Baldwin, Director of Marketing Communications