Is lead generation the same as lead conversion?

Whatever happened to interaction between a live prospect and a real sales person? You know, cold calling, and presenting a solution to a problem where the outcome is to gain a prospect to make a sale to? This can be face to face or virtually today.

It seems that "business development" has replaced "marketing" as a description for gaining new prospects, but not necessarily sales. And what really appeals to many managers is that it avoids the dreaded "sales" word. You know: "Our people aren't "sale oriented", they are professionally service oriented."

Are terms like "marketing", "client interaction" and "business development" interchangeably for sales? Well, NO. This failure to face reality creates a blind spot in the sales process.

This means unintentionally over-investing in one part of the solution (prospecting or lead generation) and under-investing in the other part (converting leads, called closing into customers or sales).

That is, buying automatic marketing online solutions that may give prospects, but not having the capacity to being able to convert them to clients.

What are businesses looking for then? They want a constant supply of customers from their (real) marketing.

They want to turn these customers into clients (sales) who need and will pay for their expertise and experience on a continual basis (client retention).

No doubt you have seen and/or been solicited by online companies who say they can "deliver you leads", "fill your sales funnel" or "take control of your interaction capabilities with endless prospects." Of course you have.

And yes, they will deliver leads (quality not assured!).But do they actually show you how to sell your services to those leads? Rarely!!

They talk and refer about such terms and ideas as:

Social media marketing, Webcasting, Events management, LinkedIn, profiling,PR management, CRM, Proactive website strategies, Content marketing, Data base penetration, Web marketing, Contact management, Sales funnels etc

These marketing services and solutions can help, but they don't make sales for you!! You don't necessarily get a client. Generally what you do get is a prospect of variable quality for your services, expertise and experience. 

What you have actually invested in is lead generation, not lead conversion. There is a remarkable difference. One is the raw material. The other is the desired ending, a sale with money changing hands.

So you will need to know how to sell the benefits and advantages of your offer to these leads. This means getting people to commit to spending money with you in exchange for your commodity (ideas, strategies, material goods, advice or services) 

These online solutions are necessary and part of modern day business. But are they sufficient? Not unless you have a conversion plan to turn leads into clients as well.

Joe Perri talks about how important the role of the advisor in the sales process for financial services has become. The more that apologetic managers try to rely on technology to sell the more important the real live connection becomes with the consumer to get the deal done. Read Joe’s article here.

In your endeavours to develop solutions and help to get new clients for business, make sure you understand what the outcome is you are looking for, long term. That is to know how to convert leads to sales to dollars paid.

Make sure you question very strongly these online solution providers selling you "marketing systems" and "business development ideas" to explain if they can also provide a sales conversion component to their offers. If they can't or won't then you are over investing in lead generation and under investing in lead conversion. 

In the process of gaining a new client, can you really effect that outcome without performing the sales conversion part of the equation?

If you haven't though this through or your management haven't then there are two reasons for this to consider:

1. Failure to understand the difference between marketing, lead conversion and basic selling. This means you are buying incomplete solutions because you don't know they are incomplete. 

2. Fear of selling. You don't want to or don't know how to sell. This means you or your management will do anything or invest in anything so that you can actually avoid selling.

To convert leads to sales YOU need to be able to sell your offer. There is no easy or simple way out. Ignore this and you are buying a product, not a solution to new business money generation

Quite simply that is wasting good money, burning time and butchering opportunity. This article is reprinted with permission from Jim Prigg CEO and founder of Knowledgemaster International (KMI) Pty Ltd. KMI is an online resources company that delivers practical communications, interaction, sales and soft skills tips, tactics, techniques THAT WORK.

Learn more about winning business programs by calling Jim at mobile 0408 520453 or [email protected].

Which areas of your business could you use more practical knowledge to boost your productivity and profitability? Copy and email today to [email protected].