A repository of acronyms, jargon, and useful definitions perfect for eCommerce founders & marketers like yourself.
Nurturing means protecting and taking care of someone while they are growing. Lead nurturing means nurturing your leads through the buying process and building long-term relationships with them. This includes communicating with the prospects on a regular basis, understanding their needs and challenges, and then sending out personalized and relevant content that solves their problems. By doing this, you build trust with your target audience and set the stage for sales.
How to measure your ROI from lead nurturing campaigns
You can measure the ROI easily by calculating the monthly revenue from leads and the new monthly revenue from nurtured leads. On getting the final value, so can subtract them both and you’ll know the estimated lead nurturing on investment.
Formula to calculate revenue from leads
Revenue from leads= New leads X Conversion rates X Average sales price.
Let’s understand this with the help of an example. Suppose if your monthly revenue from leads is $1500 and the monthly revenue from newly nurtured leads is $1800, then it means that nurturing helped you to make an additional profit of $300. This says it all about how beneficial nurturing your leads can turn out to be.
Benefits of lead nurturing
Build a relationship of trust- Regularly providing valuable content to your prospects can help to build trust and then they will begin to look up to you for every solution they need.
You become the trusted leader- You can put yourself out as an expert in your industry when you answer every question that the prospects have. This helps you to become a trusted leader in the marketplace.
Better understand your customers- When you communicate with your prospects every day, you get to know them better which helps you to know what they are interested in. You can then send out emails that target their needs.
Helps you to identify needs within the industry- When you become more aware of the needs, you can provide new products and services that you were earlier not aware of. This helps you to expand your business.
Monitor interaction- It is possible that you might lose touch with some prospects over time. In order to re-engage with them, you can use automation lead nurturing programs that capture this information.
Find up-sell opportunities-By using lead nurturing you can upsell your products and services by recommending additional products based on their past purchase patterns.
Encourage referrals- when you share valuable content with your leads, then they are likely to share that with their friends or relatives which helps to expand your reach and attract new visitors to your site.