Understanding The Numbers
One of the most common questions I get is, “How many leads should a canvasser get?”
Though I’d like to answer the question with a direct number I can’t.
Owners
One of the hardest things I find many owners having difficulty getting their head around is the percentage of leads generated by canvassing compared to the number of demos those leads generate.
The number of demos is about 50% lower than those demoed from leads generated through traditional methods, like television, radio, print, coupons or events.
Canvass Managers
Then secondly, one of the most frequently asked questions I get from canvass managers, especially those new to canvassing is, “How many leads should I expect my canvassers to generate?”
So in order to address these issues properly I’ll break the entire matrix of numbers down in the next 4 issues.
- February: An overview of the numbers – front and back-ends
- March: The front-end numbers
- April: The back-end numbers
- May: Bringing it all together
Leads generated by traditional advertising is a great lead, but the cost per lead to generate them is continuing to increase; especially in the present economy.
One of the things that will be clearly evident as you see the numbers develop is that the cost per canvassed lead will be much lower and more predictable, or more controllable depending on your preference.
The Matrix
We’ll look at all the numbers involved with tracking your canvass leads. The front-end numbers are of much greater interest to many because they directly apply to what the canvasser does and by tracking, even changing the numbers, will have a major affect on the success of your canvassing program. Front-end numbers deal with leads generated and appointments confirmed.
The back-end numbers you’ll likely be more familiar with. They deal directly with the demos and sales conversions. But what you will want to pay particular attention to is the 5 key areas that can kill your canvassing efforts. I’ll discuss these in conjunction with the back-end numbers, the ones you’re familiar with, because many of the success-killers can pertain to different areas of your business outside of the canvassing program, but will have a major impact on it.
You can be a home improvement company with an established TV, radio and/or print advertising campaign, but if you approach canvass leads with the same attention as you do your traditionally generated leads you’re bound to struggle… even fail!
Many clients demo, on average, between 40-50% of the leads they capture through canvassing. As compared to 90% or more you would demo through your traditional media. So you may ask yourself, “Why do I want to put effort into a program that I only demo on half the leads?”
“YOU CAN’T ARGUE WITH THE NUMBERS!”Chris Thompson |
Basing your entire lead-gen program soley on the 50% to 90% lead-to-demo comparison would be equivalent to financial suicide, especially as the cost per lead continues to rise.
Canvass leads will give you greater control over your ability to supply a consistent flow of qualified leads to your sales force.
Understand though I’m not advocating you shut off your other sources of lead generation and convert completely to canvassing, though some of my clients are successful only canvassing, but rather canvassing will add consistency to your lead generation that your other sources cannot.
“EVERYONE WANTS CONSISTENCY!”Chris Thompson |
There are two sets of numbers we’ll look at.
- Front-end
- Back-end
Next month I’ll detail the front-end numbers, which will answer your question of, “How many leads should your canvasser get?” Once you learn the numbers you’ll also learn how you will be able to control the outcome. Unlike traditional advertising mediums, where you don’t know what your response rates will be until after the campaign is over, with canvassing you will know your numbers before you even start.
Front-End Matrix
Here’s what the front-end numbers will include:
- Elements that affect your leads per hour
- How many contacts your canvasser will make per hour
- The number of homeowners they’ll reach
- How many homeowner’s contact information they’ll capture
- How many homeowner’s contact information was set for an appointment
- The fall-out numbers from the appointments set to the confirmation
- The fall-out numbers at the point of confirmation
You’ll find that understanding how these numbers work and how you can apply changes to the process can significantly affect the outcome. You’ll know the numbers before you get started.
I guarantee if you follw me all the way through the process (through May’s issue) I’ll change your mindset towards canvassing leads.
Back-End Matrix
In April I’ll detail the back-end matrix.
- The number of leads confirmed & issued
- The number of leads demonstrated to issued leads
- How many demos will close
- The expected number of fall out from closed demos (i.e. credit turn-downs or cancellations)
- The average sale amount
- Your net profits on canvass leads