Has it been long since you received a service order from your old customers?
This might sound trivial, but not hearing back from old customers could be a major setback for any business. Especially if you are running a field service business, cold leads may be a fatal blow to your business growth.
Of course, expanding your business and acquiring new customers are important. But did you know that the majority of your revenue comes from your existing customer base? This is not us, but the experts claim this based on real academic research.
According to a well-known business administration theory, the “Pareto Principle, or the 80/20 rule, states that merely 20 percent of your customer base is responsible for nearly 80 percent of your total revenue, with those 20 percent typically being the old customers. It also states that repeat customers generate nearly 16 times more revenue than one-time customers.
So if you currently have a database full of unresponsive customers who have once purchased your services, it is high time you gear up and re-engage them. Otherwise, you are losing a substantial chunk of revenue that could potentially boost your profitability to the next level.
But how do you do that?
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That is exactly what this blog is going to help you with. Here, you will find some amazing tips to re-engage your cold leads. We will also try to explain in simple terms what cold leads are, the difference between old leads and new leads, and why it is important for field service companies to re-engage cold leads and boost revenue. Without further ado, let’s jump right in then
Warm Leads vs. Cold Leads: Difference in Sales Approach
A cold lead refers to a customer who once showed interest in your product or service but then became unresponsive. They were once active with the potential to convert into paying customers but were not followed up on or well-nurtured. Then, somewhere along the way, they lost interest in your business, did not require the service anymore, or, worse, switched to one of your competitors.
Essentially, cold leads are a category of potential customers. Those who still show interest or eagerness to purchase from you are typically referred to as warm leads. And those who do not are known as cold leads.
If we were to do a quick warm leads vs. cold leads analysis, here is how they differ from each other:
Since warm leads are already interested and engaged, the sales approach with them typically involves nurturing and providing additional information, addressing their specific needs, and guiding them toward making a purchase decision.
With cold leads, however, the sales approach should be a little different. It must involve building awareness, generating interest, and educating them about your products or services. It often requires a more comprehensive and persuasive marketing and sales strategy to move them toward becoming warm leads.
Why Do Leads Turn Cold?
As explained above, leads turning cold refers to the incident when a potential customer does not respond to you anymore. This means you lose the chance to make a sale and earn some profit from it. Now, why does this happen?
It is hard to point out one single reason to justify cold leads. There may be a multitude of causes. Such as:
They were not properly handled by your sales team
Their preferences or requirements changed
They found better deals
They didn’t like the way your company communicated with them
Their timing didn’t match with yours
They were not satisfied with your estimate
Your product or service quality changed
They came across an unfavorable review
They lost your contact information
Whatever the reason, there is still a chance to get them back on track. At least, it is always worth trying. No matter what the issue was, you won’t have a chance to remedy the situation and get their interest back if you don’t re-engage with them.
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The Importance and Benefits of Re-engaging Cold Leads
First and foremost, reviving old sales leads presents a significant opportunity for businesses to maximize their existing resources and conversion rate. These leads have already shown some level of interest or engagement in your products or services, making them more likely to convert into paying customers compared to completely new leads. By re-engaging with these leads, you can save time and effort spent on generating new leads while potentially achieving higher conversion rates.
There are, however, far more benefits to re-engaging cold leads. For example:
Building Relationships
Consistent communication with potential leads can help you build a lasting relationship and create a loyal customer base.
Identifying Changes in Needs
Customer needs and circumstances change over time. By re-engaging, you can successfully identify any changes in the needs of your cold leads, meaning you will be able to understand their needs better and provide a personalized service. This gives you an edge over your competitors .
Gathering Feedback
When you contact cold leads, you might get feedback on why they may not have converted in the past. As you continue to engage with cold leads, you can collect more data about them, such as their preferences, behavior, and demographics. This data can be used to refine your marketing strategies and segment your audience more effectively.
Brand Awareness
Even if cold leads do not convert right away, persistent communication can help keep brand awareness high. They are more likely to consider your brand when they are ready to make a purchase choice because they have repeatedly seen your communications.
Upselling and Cross-Selling
Re-engagement efforts can present opportunities to upsell or cross-sell additional products or services to existing customers who may not be aware of your full range of offerings.
Recapturing Lost Revenue
Cold leads may include customers who made a purchase in the past but haven’t returned. Re-engaging with them can help you recapture lost revenue and turn them into repeat customers.
Competitive Advantage
If your competitors are not re-engaging with their cold leads, you have a competitive advantage by staying top-of-mind and potentially converting leads that they might have overlooked.
How to Re-engage Cold Leads
In order to revive old sales leads, it’s important to first understand the process and what it entails. Lead revival refers to the act of reengaging with old sales leads and working to convert them into actual customers. This process involves a series of steps and strategies aimed at reigniting interest and guiding leads through the sales funnel. In simple terms, re-engaging with cold leads involves reaching out to these leads, reminding them of your offering, and guiding them towards making a buying decision.
In order to achieve this goal, here is what you have to do:
Segment Your Leads
Not all cold leads are comparable. Sort your cold leads into specific groups based on characteristics such as demographics, behavior, and previous interactions. This allows you to target specific groups with your re-engagement activities, boosting your chances of success.
Use Multiple Communication Channels
Don’t rely on a single communication channel. Utilize a mix of channels, including email, social media, phone calls, and even direct mail, to reach out to your cold leads. Different people prefer different channels, so diversifying your approach increases your chances of making contact. Don’t limit yourself to physical promotion alone. Leverage social media, especially if you are trying to figure out how to re-engage with old leads or how to generate leads without cold calling. Create a strong online presence, engage with relevant online communities, and build a robust brand voice. This creates a lasting impression on people, increasing your chance of being top-of-mind when they need a service or product that you offer.
Provide Value
Offer something of value to your cold leads. This could be in the form of exclusive discounts, informative content, free trials, or access to a webinar or event. Make sure the value proposition is clear in your re-engagement messages.
Craft Compelling Subject Lines and Messages
Your subject lines and initial messages should be attention-grabbing and relevant. Make it clear in the subject line why the recipient should open your email or message. Keep your messages concise, engaging, and focused on the benefits you’re offering.
Implement a Drip Campaign
Instead of sending a single re-engagement message, consider setting up a drip campaign. This involves sending a series of messages over time, gradually building interest and trust. Drip campaigns can include a mix of educational content, testimonials, and special offers.
Personalize Your Outreach
Personalization is key to re-engaging cold leads. Use the information you have about each lead to craft personalized messages and offers. Mention their previous interactions with your brand to demonstrate that you remember them and value their interest.
Monitor and Analyze Results
Track the performance of your re-engagement efforts closely. Monitor open rates, click-through rates, response rates, and conversion rates. Analyze which messages and strategies are working best, and adjust your approach accordingly. A/B testing can help you refine your re-engagement tactics.
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Remember that re-engaging cold leads can take time, and not all leads will convert immediately. Be patient and persistent, but also respectful of their preferences. Some leads may prefer to be removed from your list, so always include an option for them to unsubscribe if they wish. Ultimately, the goal is to rekindle interest and provide value to these leads to turn them into active and engaged customers.
What to Avoid When Re-engaging with Cold Leads
Now that you have a fair idea of what you should do while re-engaging with cold leads, let us also remind you what you should not do while re-interacting with them.
Don’t Be Too Casual
Don’t be aggressive or pushy
Don’t ignore their privacy preferences
Don’t forget to keep the communication professional
Don’t ignore past interactions
Don’t keep them bombarding with excessive and untimely messages
Don’t beat around the bush—cut to the chase as soon as possible
Don’t hesitate to answer questions that you have already answered
Don’t forget to incorporate your research on specific cold leads into the conversion
How Field Promax Helps You with Re-engaging Cold Leads
At this point, things might feel overwhelming. There are so many do’s and don’ts that you need to remember, and so many things that you need to take into consideration. What if there is a simpler way to do all this?
To your respite—there actually is! Just like any other aspect of your service business, you can leverage the power of automation when it comes to re-engaging cold leads as well. And if you already have signed up for Field Proamx, you are halfway there!
It’s true. Advanced field service management software solutions like Field Promax can effectively automate and streamline your sales and marketing efforts, including reengaging cold leads. For example,
Field Promax offers a comprehensive cloud-based customer database that you can leverage to research and analyze cold leads
Field Promax has a cutting-edge customer relationship management tool that enables you to efficiently handle both existing customers and cold leads
Field Promax can automate and simplify various communication processes, such as scheduling, appointment reminders, service updates, repeat work orders, and follow-up emails
Field Promax also features a cutting-edge inventory management tool, which can ensure you have every product and part available when demonstrating or pitching to a potential cold lead
Field Promax offers comprehensive analytics and reporting features. You can leverage them to analyze past strategies and refine them to re-engage and convert cold leads
Field Promax has the best-in-class estimate tool, which helps you create accurate estimates and send them directly to a potential lead without any delay, so no leads turn cold in the first place.
Wrapping Up
In the fast-paced world of sales, it’s easy for valuable leads to slip through the cracks. Yet, these so-called “old” leads can hold immense potential for businesses aiming to boost sales and grow their customer base. So, as a business owner, it is important that you never let a lead turn cold. You need to keep in touch with them, remind them why you are the best choice for the job, and make sure your competitors are not snatching away that lead from you. To sum up, you need to develop a strategy that ensures that yours is the first brand that comes to your customers’ minds whenever they need a service that you offer.
Despite the best efforts, however, some leads do turn cold. But if you follow the steps mentioned above, it is highly likely that you will be able to maintain a loyal customer base. And if you have Field Promax in your arsenal, you are closer to your goal. As the best field service management software, it helps you deliver the best possible service to your customers, enabling you to earn some good referrals, which in turn will be a great advantage when re-engaging cold leads.
