How Taking Action on a “Someday” Tool Generated $175,000 in ARR
The temptation to postpone exploring a promising tool is a common challenge. Businesses might think, “We’ll look into this someday.” However, more often than not, “someday” never arrives. A business leader might have discovered a potential game-changer a year ago, but a lack of urgency leads to missed opportunities. One solution that seemed particularly useful for acquiring new leads was shelved until a specific customer need drove action. This swift action resulted in an impressive $175,000 in annual recurring revenue (ARR).
The Backstory
The hesitation to act stemmed from an existing offering: a higher-priced agency service that generated leads for clients. While effective, the $3000 per month price made it inaccessible for some customers.
The need for a more affordable, DIY lead generation option became clear. A conversation sparked the memory of a tool, UPX, which had received a demo a year earlier. The team decided to trial the tool to explore this new possibility.
Even during the trial period, procrastination crept in. Only on day 13, after receiving an impending charge notification, did a sense of urgency kick in. This spurred experimentation.
Experimenting with a Simple Pitch
Initially, there weren’t customized templates within the tool. A sales and marketing manager was asked to reach out to a few previous webinar attendees who didn’t sign up. The new pitch leveraged the tool’s lead generation power. The CRM was positioned as the solution that not only manages leads but also actively generates them.
The results were remarkable! A 100% conversion rate was achieved among the targeted group. Within 24 hours, four new customers signed up for the $749 per month plan – an additional $36,000 in annual revenue! All because a team member decided to act on exploring a tool that had been passively considered.
Building a Flagship Offering
The results confirmed lead generation as the new third-tier offering. Consideration was also given to a fourth tier emphasizing enhanced value and support. However, the third tier remains the most popular option, providing customers with access to the UPX tool and its lead generation features.
Lessons Learned
- Action Trumps Procrastination: In hindsight, there’s a tinge of regret about not taking action on UPX a year earlier. It highlights that opportunities mean nothing unless acted upon.
- Don’t Let Price Be a Barrier: For those trying UPX, the recommendation is to commit to the unlimited plan. While the price might seem higher, the return on investment justifies the cost. Full commitment often maximizes the tool’s effectiveness.
- Focus on Maximum Value: In this specific case study, the business decided to remove lower-tier plans. They now exclusively deliver the offering with both lead generation tools and the highest value proposition. Downgrading remains an option if necessary, but the aim is to equip customers with the best tools for growth.
For businesses currently exploring lead generation tools, the advice is simple: take action! Exploring the potential of these tools could uncover exciting new opportunities for growth.
