What is Lead Nurturing?
Considering a lead nurturing program but not sure what it is and why you should spend time on it? In this article, we take a high-level overview of the value that nurturing leads brings to a medical practice. We’ll also look at some industry metrics to show the effects you can expect.
- Most medical practices convert less than 20% of leads that they receive into patients.
- Lead nurturing programs can increase conversion rate by an additional 50%
- Lead nurturing can decrease the cost of conversions by 33%
If you are new to lead management and marketing automation, one of the benchmark metrics that systems such as influx MD quickly identify is the relatively large number of people who contact the practice for information but don’t move on to become patients.
For most practices, this number is usually around than 80%. In other words, if you acquire 100 new leads a month, less than 20 will convert to become patients. If you haven’t tracked your lead acquisition and lead conversion rates before, it can be quite a surprise to learn how many leads get away.
First, let’s be clear. Twenty-percent is normal and not something you are doing wrong. Second, we should be equally clear; this is the biggest opportunity you have for increasing revenue through marketing automation so just because it is normal does not mean it is acceptable.
Why Does Lead Nurturing Work?
Lead nurturing uses email to create a stronger relationship with leads. It is a valuable tool at any stage of the buyer’s journey and even after the sale. There are three main stages in the buyer's journey. Awareness, consideration, and decision. At each stage in the buyer’s journey, the lead needs specific information and an expectation for a particular type of agent interaction.
Imagine you are buying a car. You go to a dealership with the express wish to see what is available and see the latest models. A salesperson who does not recognize that you are in the awareness stage and tries to sell you a car will fail. In fact, there is a good chance that trying to sell you a car now will send you to another dealership.
Now imagine that you are back for another visit to the same dealership. Last time you learned about all of your options. Now you are ready to buy, but the salesperson leaves you alone which frustrates and annoys you, so you go somewhere else.
At each visit, you had a different need for information and a specific requirement for assistance. The sales team that recognizes your needs and treats you appropriately will probably make the sale.
Lead nurturing identifies where in the buyer’s journey the lead is and delivers the right information for that stage. When the lead is ready to decide, your sales team steps in to help.
How Well Does Lead Nurturing Work?
The industry metrics on the effect of lead nurturing shows that companies that implement it yield 50% more conversions at a 33% reduction in cost. Let's drill in on this to find out what this means.
Of the 20 patients we were getting before, lead nurturing has the potential to provide an additional ten which now gives us 30 patients from the original 100 leads.
If our marketing budget was $2000, then each lead cost $20. Originally our 20 patients cost $100 each in marketing dollars. Converting 30 leads means that we spent $67 per lead which means we dropped our cost per conversion by 33%.
Why Is Nurturing Important to Your Medical Practice?
The bottom line is that a lead nurturing system like influx can increase conversion by up to 50% without making any other changes to your intake process. If you combine a strong lead nurturing strategy with other workflow and sales optimization the potential for increasing revenue is even greater.