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Tuesday, April 7, 2015

Convert More Leads To Sales
Only 3.6% of leads from customer and employee-referrals convert to sales.  (1,000 leads produce a paltry 36 closed sales!)  However, 3.6% looks good compared to conversion rates from other lead-sources.  Consider:
  • 1.6% for website leads
  • 1.5% for Facebook/Twitter/Social Media leads
  •   .8% for advertising and marketing leads
  •   .6% for trade show leads
  •   .5% for webinar leads 

While discouraging, these closure rates probably aren’t a complete surprise. If you consider it further, the superiority of personal recommendations should be no surprise as well.  We’ve previously cited research from Nielsen and other organizations to reinforce our belief in the power of personal communications versus institutional sources.  People simply trust other people!

There's No Hiding From the Numbers


Yes Implisit, the sponsor of the research that generated this information did gather the

numbers in a B-to-B environment. No doubt many consumer products enjoy higher close

rates.  But even so if generating new sales weren’t so critical we might be tempted to ‘throw in

the towel’ on the lot. After all, the highest conversion rate is a measly 3.6%! 


Or, the Reality

The answer might just have to be one of generating a lot more leads - the most productive type of leads - those generated by customer and employee word of mouth.  Unfortunately, no matter how great your product or service, even the most loyal of customers usually don’t generate the level of word of mouth you deserve.  And strange as it seems, even those people whose paychecks are dependent on your company’s success (your employees) may not be of the mindset or have the total corporate picture needed to speak to their friends, neighbors, relatives or strangers about your brand.

Turning Customers (and Employees) Into Active AdvocatesPositive word of mouth can be an incredibly powerful force in encouraging potential customer to consider and buy a brand, but it doesn’t easily happen without some facilitation.  Both customers and employees need a well-orchestrated word of mouth management program; one that provides them:
  • Motivation
  • Opportunity
  • Content
so they can effectively lobby for your brand.
Until such individuals are reminded of their connection to your brand they won’t be motivated to promote it.  This holds unless and until an incident or event occurs that provides them with an opportunity to express their opinion.
Further, until they are provided with content and a 'story' to tell, most won’t be helping you build awareness/consideration and they aren’t likely to be heard recommending your brand.
8:28 pm edt          Comments

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Measurement, Management, Optimization
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