Businesses that spend more money winning new customers than they make from them are unsustainable.
Just look at Spotify, the world’s largest streaming music service. In the pre-IPO paperwork, Spotify announced that they have 71 million paying users and 159 million free (ad-supported) listeners, as of December 2017.
With $5 billion in revenues, the company is set to be worth $23 billion once listed on the New York Stock Exchange (NYSE). And yet, their customer acquisition costs are killing Spotify financially. A public listing is a necessity to continue growing. In 2017, they made a net loss of $1.5 billion. Now, this burn rate isn’t unusual for high-growth tech startups; but, for most companies, this would be unsustainable.
For most businesses, customer acquisition is an expensive activity. B2B companies usually generate new leads using a combination of sales and marketing. B2C mainly use marketing and advertising, which usually requires a larger budget.
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Automating sales as much as possible
Business leaders want to automate every step of the process, as much as possible, to reduce costs. Which is why many companies that need to demo a product or build a quote (any situation which doesn’t lend itself well to a turnkey e-commerce/SaaS sales outcome) have forms on their websites: “Get a Demo,” “Request a Quote” and other similar destinations in the lead funnel.
You’ve probably also seen these forms standing between yourself and an ebook you want to download. You may even want to ask more about the company that produced it. But how often do you give up before filling in the information?
More often than not, demo, quote and ebook forms are abandoned. Most people give up before they’ve handed over the data businesses need to contact them.
Unfortunately, these forms – a crucial step in your marketing pipeline – aren’t always well thought out or implemented. Making them pretty useless. E-commerce baskets face a similar challenge, with a 69% cart abandonment rate, according to a compilation of 37 studies.
Let’s assume, for this article, that the average amount invested in acquiring 1 customer is $100.00. If you generate $1000.00 from them every year, you’ve got a decent ROI from those activities.
But what if the reality is that $90 of that $100 is wasted on nine potential sales prospects that went through the same journey as your new customer, only to give up at the demo form?
Suddenly those numbers don’t look so good. They’re also fictionalised – so I’m sure you have realistic numbers to base this assessment on, and a pretty good idea, from web traffic analytics, how many people are landing on your demo or quote landing page, only to give up and vanish, potentially forever. Far too many wasted opportunities.
Why are demo and quote forms abandoned?
In our experience, there are several reasons forms are abandoned and leads go cold, including the following:
We live in a world where customers don’t want to work hard to find a solution to their problems. Businesses have to work to get them, to win them over. Don’t make it more difficult by placing too many stumbling blocks between you and them. Sell the advantages. Don’t ask for too much information. Give them the option to get a phone call or instant demo when it’s convenient for them, and don’t make them wait too long.
If you’re interested in finding out more about the Talkdesk and CrankWheel integration, register to view CrankWheel’s webinar.