In the last post, we discussed “the sales equation” that every solar company should maximize. As a reminder, here is the equation (Note, for this article the questions are applicable to both solar and geothermal companies):
“The Sales Equation” = High Gross Margin * Project Closes Quickly / Marketing Dollars Spent
There are 3 variables to the equation, two of them have to do with your marketing activities. Specifically, selecting the right customers. You can influence how fast projects close and spending the least marketing dollars by selecting the correct customers. Yes, you heard correctly, all customers are not created equal. Money is not money. High gross margins on a project and marketing dollars spent on a lead have a large overlap. The jobs with the highest margin are likely the ones that are managed the best from an operations perspective. Well run jobs are also the ones that tends to lead to the most referrals, and these are the cheapest leads.
In a future post we will discuss strategies on the best ways to create referral business from a project. For now, back to selecting the right customers. You need to find leads that are the cheapest, and that will close the fastest. These are highly qualified leads.
What does a highly qualified lead look like? These will apply to both solar and geothermal projects. They can take many forms, but it’s likely they’ll meet many of the following criteria: