I'm an investor in a cloud-based dental practice management
software company. Company has been around for about 3 years and has a very good,
competitively priced ($79/mo/user) product. I'm curious to know whether their
lead conversion stats are good or poor. The company spends almost nothing on
marketing but still garners about 871 unique, organic visits to its web site
(5226 for last 6 months). The target audience is obviously dentists and dental
professionals. That traffic generates about 19 inbound leads per month (115 in
past 6 months) or roughly 2.2% of top line traffic. About 50-60% of the
inbounds are demo requests; the rest are product inquiries (which sometimes
lead to a demo). The demo is a key component for a successful sale. Demo no-shows
are a problem. Despite automated reminders and pre-demo calls to qualify, about
40% are unreachable and/or shows. Looking at the sales in the last 6 months,
there have been 8 directly attributable to the web site. The funnel looks like
this for the past 6 months:
- 5226 unique visits
- 115 in-bounds of which about 69 are demo requests
- Approximately 40 demos were actually given
- 8 clients signed
The company has other lead gen channels. The above isolates
only the organic search portion to its site. Are these conversion rates any
good? I find that the traffic to inbound lead ratio to be low at 2.2% given the
specialized nature of the product. On demos given, they are closing about 20%-25%
of them. I find this low.
Any suggestions on how to improve conversion rates in a situation like this?
The company is using a marketing automation system (InfusionSoft) to manage and automate the lead gen process and for ongoing nurturing.
Thanks for your input. The URL is www.dovetail.co. This site
is a bit dated. In the last few weeks I have completely restructured the site,
messaging and creative. It should be on-line in by mid-May. The plan here is to
drive better quality traffic and have more CTAs in place for lead conversion.
There are not enough testimonials on the existing site. There will be more on
the new site. I also believe heavily in content marketing and nurturing. The
marketing automation infrastructure is in place but not optimized. I like the
idea of a short self-serve video demo as a first step in the request demo
process; however, the founder seems to prefer the "human contact" element.
The demos are given by a dental hygienist who can really show the product well.
The dental market is finite. There are about 200K dentists in North America, 2.1M globally. From a competitive standpoint, there are a handful of companies who own a large share of the market. However, they are all selling server-based, desktop PC based products that can cost upwards of $25K...none are cloud and mobile. My finger in the wind estimate is that at any given time, at least 30% are looking or open to switch. Decent addressable market.
I cannot speak to the quality of the
current traffic. The data is there...it just needs to be analyzed. I'm considering taking over the CEO role so analyzing the situation so I know what works needs to be done.
BTW: The inbound process at the moment is all Internet form based (Request Demo, Contact us forms). When a lead comes in, a girl calls to profile and qualify the prospect prior to demo.