The only way to figure out the most cost-effective means for generating quality leads is trial and error. Try, try and try again. Better yet, test, test and test gain. It's a game of keeping track of each effort, tracking the results and then trying different combinations and nuances to find an even more successful campaign. Finding one great campaign might do the trick for a while, but never stop experimenting and tracking the results.
Lead generation involves several touch points
Unlike mail order that makes and closes the sale at one time, lead generation is a multi-step campaign where the goal is to find and sign in potential customers. The number of contacts will vary depending on what we sell, the price, the number of people involved in the decision-making process, and so on.
Work backwards
In conceptualizing a campaign, start at the end with the ultimate objective and go in reverse to the first step. The important thing is to plan every step of the campaign in advance. Having a well-thought out strategy in place before hitting the mail, the email or the ads along with the collateral material ready, allows us to respond promptly and confidently at every stage of the process.
Less is more
Give the prospect just enough information at each stage of the campaign to take him to the next stage until the process culminates in a high quality lead. Revealing too much too soon increases the chances that the prospect will react negatively or find objections. Personalization is nice but not necessary. The lead generation piece doesn't have to be fancy. In fact, simple or even ugly has been shown to work better than expensive mailings filled with inserts. A non-personalized letter and reply device is all it takes to get the ball rolling.
Use a bait piece
Many experts agree that it's a mistake to send a lead generating promotion without offering something free to excite interest. You can use almost anything for a bait piece, but the best items offer genuine value that the prospect finds relevant and useful, and which ties into our product and service. Whitepapers, brochures, booklets, case studies, checklists, idea books and special reports are commonly used because of their high perceived value.
Sell the bait piece, not the company
The first effort in the series should sell the benefits and solutions found in the bait piece, not the product or service we are ultimately trying to sell. For example: If you're a landscaper and you'd like to sign up more households, your bait piece could be "7 Tips for Growing a Greener Lawn"--not "How XYZ Landscaping Cares For Your Lawn." The former informs, the latter sells.
Make the bait piece unique
Create something specifically for the mailing and which is available nowhere else. If conditions preclude this, then it's perfectly acceptable to repurpose existing content from the company into a suitable booklet or report. Put a catchy title on the bait piece. The title can interest the prospect, solve a problem, evoke fear, offer a benefit or ask a provocative question. "How to" titles and titles with numbers ("7 Ways to ...") never go out of style.
Arouse curiosity, not contentment
The lead generation promotion should get them excited enough to respond, and nothing more. It's better to hold something back in this kind of promotion rather than satisfy their curiosity or reveal everything at once. State clearly that the bait piece comes without cost or obligation.
Variables to optimize in the lead process
The response rate is highly influenced by the how ready the customer is to buy your services and how relevant the offer is to their preferences and needs.
A useful 17 point check list
1. What are your geographical areas yielding a higher possibility for response than average
2. What type of property are they in possession of
3. Can you pin down neighborhoods that have great ambassadors or loyal clients
4. What are the income brackets in the target groups
5.How do they view the future regarding income, house value increase and reasons why they want to invest
6. What is the number of contacts necessary before the prospect is ready to meet the sales staff? 7. Identify where in the buying process the customer is
8. What is the competition
9. When do they plan to buy
10. How do they want to invest
11. Test messages, what works best to whom; cost, security, design style…
12. Test layout (simple and cheap, versus glossy and exclusive)
13. Test channel and number of contacts (on-offline)
14. Would an email program to inform and educate about possibilities work?
15. Test what number of contacts are most effective courting
16. Test methods of production to reduce cost or increase quality
17. Negotiate price on distribution on and offline
Do the math - How many addresses do you need to send the bait to each week?
If you want to end up with 100 prospects per week you want to end up with, here is what you have to invest depending on your response rate:
Expected response rate 1 % 10 000 suspects per week
2 % 5 000 suspects per week
5 % 2 000 suspects per week
What will the bait cost for one contact?
Fill in the numbers (here is an example):
Creative (estimate, fixed cost divided on larger volumes) $ 15 000
Production (10 000 pieces x $ 00.50) $ 5 000
Distribution (10 000 pieces x $ 00.46) $ 4 600
Total $ 24 600
Contact 1
Cost per lead with 1 % response rate 24 600/100 $ 246
Cost per lead with 2 % response rate 24 600/200 $ 123
Cost per lead with 5 % response rate 24 600/500 $ 49
Contact 2….n
Do the same math for each contact.
Finally, use low-cost PR techniques to generate more leads
To get more mileage out of the offer, notify media outlets that serve our target audience and tell them that the booklet or whitepaper is available--again, at no charge. You're not pitching the company; you're pitching genuinely valuable, relevant information.
The clue to attracting prospects!
