Responding to sales leads with speed and focus is a key tactic for owners and managers of spa dealerships looking to grow their bottom line, according to recent sales tracking data.
“Our research shows that if you respond to leads within even the first hour, but really within ten minutes, you have an exponentially higher probability of turning that lead into a sale,” says Travis Schmidt of SmartLead, the platform that handles lead management for Bullfrog Spas.
When motivated buyers begin researching spas, they are likely to cast a wide net, says Schmidt. “If someone’s looking at Bullfrog Spas, there’s a good chance they are also looking at Jacuzzi and other major spa brands, like Hotspring and Caldera.”
Potential customers frequently leave their contact information with multiple vendors. And that can lead to a race against time for spa owners because the faster they respond to a lead, the more likely it is that contact will result in a sale.
“More than fifty percent of leads will purchase from the vendor that responds first, who answers their questions and starts building a relationship,” says Schmidt.
High Value, Low Investment
Don Moir, co-owner of Moir’s, a pool, spa, and outdoor furniture retailer in Ukiah, CA, two hours north of San Francisco, splits lead management with his wife, Teresa. While some dealers delegate leads to their staff, the couple regards Bullfrog leads as too essential to off-load. Their focus has yielded a 25% conversion rate.
“It is just so huge and so key to your business. For us, in a smaller market, my wife and I handle leads ourselves. You’ve got to consider a lead as gold and think of it as possible revenue. Not only will it support your business, but it supports the families of people that work for you. So it has just so much value to it.”
Bullfrog Spas Regional Manager Craig Selvidge agrees. Retailers who aggressively pursue leads see increased profits. “The leads we get are generally looking for exactly what they want. They’ve already designed their dream spa on the website and aren’t necessarily comparing prices. That makes them better customers. You’re more apt to make a bigger margin on the spa leads versus somebody who comes in off the street comparing prices.”
As for dealers who offer servicing — often a significant profit center — leads offer an even bigger incentive, providing a new customer with a steadily growing lifetime value.
Selvidge says his savviest owners have made that connection. “Dealers who do the best with leads are also the guys that also do the best job offering service and repairs.:
Inspire & Interact
Lead generation at Bullfrog Spas begins with an invitation. Visitors to the company website are encouraged to design their dream spa online and get a price quote. After customers complete their spa plans, SmarLlead sends a notice to the closest Bullfrog dealer with contact information and the model the customer is interested in.
The SmartLead system contains Customer Management Relationship features that allow Bullfrog Spa vendors to log interactions. That means Bullfrog Spas can correlate when a lead is looked at, when it is acted upon, and the results of that contact. The numbers are eye-opening.
“Eleven percent of the leads that dealers responded to within the five minutes of hitting our system resulted in a sales conversion,” says Schmidt, noting that the average conversion was about five and a half percent.
“Basically, you double your chances of making a sale if you’re able to contact them quickly.”
No-Cost Marketing Better Sales
Bullfrog Spa offers its lead generation ecosystem to vendors at no charge.
“It’s free advertising,” says Craig Selvidge. “The leads are facilitating new sales for dealers. Where’s the downside?”
A passionate evangelist for lead management, Selvidge says the most successful spa dealers he works with treat the lead pipeline as a priority, not a chore.
“You can enter contact numbers into the system and divvy up the coverage. If a lead comes in at 8:30 p.m., someone can respond with a brief message suggesting they follow up in the morning. If there’s a late-night request, someone needs to follow up first thing in the morning. That’s all it takes.”
“It’s so easy. Just do it,” seconds Moir. The dealer notes that not responding to a lead might have a negative impact. “If somebody leaves you their phone number and you don’t call them right away, it can feel insulting. Like you don’t care enough to even give me a call.”
As for late evening inquiries, Moir finds a simple note will suffice. “I’ll text, ‘Thank you for your interest. I will call you first thing tomorrow morning.’ I think at 10:30 at night, most people are lying in their bed, finishing a design on their laptop. They probably don’t want to talk to you at that point. But anything happens during regular daylight — we’re on it.”
Moir says that other than trying to schedule a call or visit with a lead, he usually tries to follow up with a quote for the spa a customer has designed. “I like to get the price out of the way. For me, it can be a stumbling block.”
Since Bullfrog Spa’s online design includes a quote based on the MSRP, that actually helps Moir move the sale forward.
“I beat the online quote,” he says.
Join the Prospecting Gold Rush
For Moirs, the combination of the leads and the quality of the product are a dream come true. “Bullfrog Spas hot tubs are the easiest to sell,” adds Moirs, who has been in the spa business for decades. “No other brand can compare. They just have so many unique features that set them apart.”
With that in mind, Selvidge advises Bullfrog Spa retailers who want to improve their lead management conversion and reap the benefits of reaching a motivated customer should reach out to their regional manager for guidance.
“When it comes to generating income dollars, dealers need to realize the importance of leads and capitalize on the opportunity they provide. It’s a no-brainer.”