A small business owner failing to handle leads effectively and trying to operate beyond reasonable capacity
If you are running a small business and would like to protect yourself from the common mistakes that your peers are making, then this case study is for you.
Running a business regardless of its size is not for the faint of heart. It involves a lot of risk and requires you to wear many hats in order to succeed. Starting your own business takes passion, dedication, and massive amounts of energy. That’s why watching a business fail is so heartbreaking!
According to the SBA
- 20% of businesses fail the first year
- 50% of businesses go under after 5 years
- 33% of businesses make it beyond 10 years
In this case study, we have analyzed the pitfalls of a small company in the moving industry. We’ll be sharing with you the reasons why we think they failed and what they could’ve done better to pivot their business from sinking.
Failure to create a recurring process that manages inquiries real-time and progress leads to opportunities
Running a small business with limited capacity requires not only the ability to multitask but also very strong organizational skills. Juggling multiple customers while managing your team, service offerings, and cash flow, all at the same time will eventually overwhelm you. Even the most organized person will have a hard time managing the many demands of a business. That’s why effective selection and use of tools and CRM systems are crucial.
Unfortunately this happens so often that we have made it a point to discuss thoroughly when interviewing and onboarding new clients. I cannot tell you how many companies are doing well enough and either don't actively use a CRM or have one that they barely know how to use or worse we get them set up with an amazing CRM that is customized for them and they simply don’t use it.
Business Mistake: For this service-based vendor, a CRM system designed to manage customer conversations and their opportunity pipeline is in place. Unfortunately, the system was underutilized resulting in conversations being dropped and leads falling through the cracks.
These screenshots are to showcase multiple warm leads we generated for the client with our marketing campaigns that they simply did not respond to. Some of these customers responded day after day trying to get a response from the business owner.
Solution: Just like any other tool that you choose to invest in, make sure to rally the team to fully utilize it. This would take educating the team on how to use the system and making the commitment to use it.
We can easily fill the sales funnel with leads but if a client isn't willing to use the CRM and communicate with their leads then all the work we have done for them is for not. This is another reason why we offer more resources to counteract this issue, for example TaskHelpr.
Pro Tip: Find a system that is fully customizable to your business needs. Concinnity offers an all-in-one and easy to use platform, among its many features are:
- Manage your team calendar, Appointment bookings and automate confirmation and reminders
- Provide a dashboard for your sales pipeline so you can see how leads are progressing from raw to closed won
- Talk to your leads in literally any channel you like - call, sms, chat or email, all in a single system
We’re happy to talk to you about the endless possibilities, click here to know more.
Failure to Delegate & Hire forward
If you’re an entrepreneur, self-reliance would be one of your strong suits. While this is a good quality to have, it could also mean that you are most likely to overestimate your capacity which is detrimental to your business. Trying to fit everything into your schedule, even the menial admin tasks take you away from high-value initiatives like winning new customers.
Business Mistake: This moving company was no different. Running in full capacity, they have found themselves drowning with booked appointments which often took several days to be responded to. This resulted to unresponded inquiries, missed appointments, and abandoned customer conversations. Much time was spent on low-value tasks instead of revenue-generating activities.
Solution: Increase efficiency by unloading your team from administrative work and getting an admin or task helper instead. This way you are 100% sure that no appointment is left unconfirmed and therefore no opportunities are lost.
Pro Tip: Consider hiring a Task Helper to increase capacity. Think about freeing yourself from managing your calendar, inbox, and reports. Save time from doing data entry and customer-support tasks by outsourcing all your admin work. This not only allows you to focus on high-value tasks, it also saves you tons on labor costs compared to hiring someone in-house.
Disconnect between sales and marketing efforts
Building a successful business is more than just managing day-to-day operations. It involves making sure that your marketing strategy generates quality leads and that the sales team is able to convert them effectively. This takes concerted effort, with not one team dropping the ball.
The moving industry has cut-throat competition, the sales cycle is fast and it’s important not only to get qualified leads but to ensure that the team is able to keep up and convert!
Business Mistake: While a healthy number of leads coming from multiple channels were consistently fed into the pipeline, the drop-off rate was through the roof. The sales team simply couldn’t keep up.
Solution: Operationalize your business with a CRM system. Feeding customer data, insights and analytics into a system that allows the sales team to easily act on the leads is critical. Keep in mind to deliver the right bit of information to both your internal and external customers at the right time. Find opportunities to be prescriptive and highlight customer pain points that would help the sales team organically deliver your company’s unique selling points.
Pro Tip: If you are running a small business, chances are you do not have an in-house marketing team. Engage a Marketing Agency that will drive leads and generate demand for your business.
Ensure your Sales team is able to keep up by providing them a fool-proof way to manage their pipeline with an effective CRM system.
Concinnity Digital is a one-stop-shop for all your marketing needs – we help small to medium businesses generate demand for their business and provide a CRM system to manage opportunities. Check our website to find out which service tier works for you.
Finding yourself in the same situation?
If you think you are committing one or all of these mistakes, it’s not too late to turn your business around.
We are here to help you just like we’ve helped several other small businesses who have faced the same challenges and reached the next level through our customizeable solutions. Click here to schedule your consultation.