Every commercial endeavour needs business leads. How can you get them? How do you know if you are spending too much for leads? How happy would you be if you only paid for marketing when it generated customers at a known and predictable rate?
In the larger picture, Search Engine Optimization works like that. Rank highly enough in the search engines and you can quantify how many people see your website when they are searching for specific terms or phrases online. But some businesses don’t have websites. Some businesses have websites written in HTML that require more time consuming (read “expensive”) effort to make changes on. Some small businesses don’t care about SEO, social media, video marketing or any of that stuff, they just want the phone to ring with business leads. (Isn’t that really all of us?)
One business model that works for ALL businesses is lead generation via monthly or weekly rentals. In a scenario like that, a business owner simply pays a lead generation company a set price per call, or a flat fee per week or month for new calls to businesses from qualified leads or potential clients, or even a flat fee for an online property that they rent form a SEO expert company.
To male this work a you need to have a good idea of what a new customer is worth. You need to know how many new business leads it takes to close one new customer, how much that customer will spend in a year and how long you are likely to retain that customer. Once a business has a general idea of those numbers, it isn’t hard to calculate how much it can reasonably spend to get new leads for business increase. Let’s use an example. Say a hair salon customer typically spends $85.00 per visit. And that customer will visit the salon once every two months. And the average customer of that salon continues to visit the salon for two years. It is pretty simple math to figure out that the average salon customer has a lifetime value of $1020.00. Taking everything into consideration, the owner of the salon might figure that it is worth their while to spend $100.00 acquiring a new customer. If the salon finds that one out of every five phone calls turns into a customer, then spending $20.00 per phone call (or lead) makes sense.
The business owner should compare the numbers associated with business lead generation to other forms of marketing. How many customers are generated by a $500.00 ad in the newspaper run one time, as compared to a $100.00 ad run five times? How many customers come in because of the $250.00 per month Yellow Pages ad? What about their “You and a Friend for the Price of One” promotion? Maybe you don’t know the answers to these questions, but all you have to do is start tracking results today, and you soon will know the answers.
A lead generation company will find qualified buyers through several different means. They may create internet properties (websites, videos, slide presentations, articles, infographics etc.) that attract potential customers attention and include a “call to action” such as submitting an email, making a phone call or downloading some information. Of these three, a prospect actually making a phone call to your business is obviously worth more. But all of these methods are directed at individuals who have a problem and are searching online for a solution. Another method of business lead generation is “targeted” advertising through online media like Google Adwords, Facebook ads, or advertising on other social media. Using these channels, a lead generation company can target a specific demographic that you have identified as being your ideal customer. Both methods require expertise and skill. But you don’t have to worry about gaining that skill or expertise, you only have to focus on meeting your customers needs…the lead generation company delivers the customers.
So think about lead generation solutions when you think about marketing. Marketing is still being done, but it is somebody else’s headache. And all you have to worry about is paying when someone actually calls your phone number.
If this sounds like something you would like to explore, give me a call at 705-931-2223
Bootstrap Local Marketing