It is important that your sales team focus on the right leads when prospecting. By targeting customers who are more likely to need your product, your business can increase its conversion ratio, and sales reps will waste less time targeting irrelevant leads.
In this article, we’ll show how Red Flag Alert data helps businesses create effective prospecting lists. We’ll also look at a company that increased its conversion ratio 24-fold after utilising Red Flag Alert data.
How Red Flag Alert Helps Businesses Drill into Customer Types
Red Flag Alert provides businesses with the data they need to create detailed buyer profiles and then use these profiles to find leads.
This is a two-step process. The first step is to define your ideal customer, and the second is to find businesses that match this profile.
Step One: Find Your Ideal Customer
Businesses already have a great source of data they can use to create their ideal customer profile, namely, the current client base. These are companies that they know will convert into buyers and have a demonstrable need for the product or service.
By using Red Flag Alert data to identify metrics within the customer base such as sector, location, or revenue, businesses gain information about the type of prospects most likely to convert into buyers.
The data can be used to identify specific indicators that show a company is ready to buy. For example, businesses may find leads are more likely to make a purchase soon after increasing revenue or being hit by bad debt.
Businesses may have multiple types of ideal customer. If this is the case, it can segment the customer bases into different buyer profiles, helping sales teams create effective strategies for each type of customer.
Step Two: Target Customers Based on These Profiles
Once a business knows the type of customer likely to need its service, the sales team can filter the Red Flag Alert database to build a list of prospects.
These lists will consist entirely of companies that fit your customer profile, meaning sales teams won’t waste time chasing unsuitable leads.
How Clearly Defined Customer Profiles Can Help Sales
One of the most powerful tools for building customer profiles in Red Flag Alert is the creditor services data. In this next section, we’ll look at how a company used Red Flag Alert’s data, including creditor services data, to increase its conversion ratio from 0.5% to 12%.
First: What is Creditor Services Data?
When a business fails, it often leaves unpaid creditors. In many cases these unsecured creditors stand little chance of getting all their money back, leaving them facing financial uncertainty and possible insolvency.
Creditor services data shows when a business is an unsecured creditor in an insolvency. It details when the bad debt occurred and how much the business stands to lose. Red Flag Alert’s data covers six years and over 900,000 instances.
Most businesses can use this information to manage risk. However, for some — such as the example below — it's possible to use the data to identify a selling opportunity.
Case Study: Red Flag Alert Data Helps Financial Broker Drive 24-Fold Conversion Ratio Increase
The business in this example provides asset or personal guarantee backed working capital loans to businesses in the manufacturing sector. Here is how they utilised Red Flag Alert data to target companies based on detailed buyer personas.
Before Red Flag Alert
Before implementing Red Flag Alert data, the business’s sales team targeted any manufacturing business within 125 miles of Manchester. Using this system, the business had a conversion ratio of 0.5%.
After Implementing Red Flag Alert
Using Red Flag Alert data, the finance broker was able to target more specific types of business based on its ideal customer profile.
It still targeted businesses within 125 miles of Manchester. However, it added the conditions that the business has a current ratio of below 0.9%, that the business is at least seven years old, that it has a turnover of £1.2 million, that it is run by at least three directors, and that it has less than two CCJs against its name.
These changes saw the company’s conversion ratio increase to 5.5%.
After Adding Creditor Services Data
Adding creditor services data allowed the company to begin targeting businesses that not only met the above criteria, but had also been unsecured creditors in insolvencies worth £30,000 or more in the previous six months – a clear sign that the company may need a short-term cash injection.
This suspicion was correct. After adding creditor services data to its targeting, the business saw its conversion ratio shoot up to 12% – a huge increase.
Features of Red Flag Alert Data
Red Flag Alert is the perfect source of data for B2B companies looking to create more accurate customer profiles and build effective prospect lists.
- Red Flag Alert data covers every business in the UK so you won’t miss out on any potential customers.
- The data is filterable based on several crucial metrics. This makes it easy to build lists based on your customer segments.
- The data is updated over 100,000 times every day. Not only can sales teams be sure they are using the most up-to-date information, but they can identify buying indicators as soon as they occur.
- The Red Flag Alert API allows businesses to integrate the data within their existing CRM.
For more information about how Red Flag Alert data can help with your prospecting efforts, contact Richard West at firstname.lastname@example.org or 0344 412 6699.