Posts Tagged ‘lead vendors’

Get to Know Your Prospects Through Progressive Profiling

Wednesday, February 16th, 2011

If you haven’t been getting to know your customers through progressive profiling, you could be missing out on one of the most powerful strategies in B2B marketing. Progressive profiling allows you to gradually engage prospects while learning more about their needs on each visit to your company’s website.

For example, a prospect who initially downloads a technical whitepaper and later returns seeking detailed product data sheets or a free trial is likely getting closer to making a buying decision.

Each subsequent visit gives you the opportunity to gather additional detail such as company size, purchasing budget and details regarding their company’s needs and interests. To do this effectively you will need to have a “smart” form on your website. This application saves each bit of data gathered during a prospect’s visits to your site.

One of the key advantages of this method of customer profiling and lead gathering is that it avoids the use of lengthy forms. Often, persons seeking business services will have already visited several sites by the time they encounter yours, and may have tired of filling out forms.

Progressive profiling can become an indispensable part of your marketing strategy, but it does require time to effectively plan the process and manage the data you gather.

If your site does not initially produce enough qualified needs, you may want to complement your efforts with pre-qualified leads from a lead generation company. Many businesses find that purchasing at least some of their leads helps keep the pipeline full and compensates for any lack of qualified leads gained through the company website.

To be certain you’re getting leads of the highest possible quality—ones that would be equivalent to those you gather through progressively profiling visitors to your site—make sure the lead gen company utilizes this methodology in their own lead-gathering process.

The ones who do are very adept at collecting information about your prospects and categorizing leads according to detailed demographics. Some have a highly refined scoring system that will rate leads by their online activity during each visit to the lead gen company’s site. This type of system delivers warm leads in real time, ones that will bring an excellent return on your investment.

How Much to Pay for Leads Depends on Lead Quality, Source & Results

Monday, October 4th, 2010

A high number of leads, which are offered at a very low cost per lead, usually result in anemic sales results. Yes, you can buy “leads” in large quantities for as little as $1 each, but these simply represent companies that may — or more likely, may not — be interested in actually purchasing your services. The point is there is an enormous gap in quality between a list of “leads” and real-time leads that represent buyers who are actively seeking your services.

If you’ve been reluctant to purchase leads from a lead generation company (for whatever reason), you could be doing your business a big disservice by missing out on one of the richest sources of leads available. Some marketers hold back simply due to their uncertainty over how much to pay for leads.

What you may not know is that seasoned lead buyers gladly pay more for leads whenever those leads represent pre-qualified and verified prospects who exhibit an active willingness or readiness to buy. It simply makes logical sense.

But before purchasing leads from an online generation company, ensure that it offers filters that allow you to precisely specify the type of leads and associated demographics that are most likely to purchase the services you offer. This increases the relevancy of your leads, which means you get targeted leads based on your lead selection criteria.

The better, more professional lead-gen companies also follow another best practice: They use live human beings to contact every potential lead before offering them for purchase. This ensures that lead buyers receive correct and accurate contact information. This single factor alone greatly increases the speed, ease and profitability of working a lead.

Lead Quality Depends on Lead Source

The source of your leads also affects lead value and, therefore, the price you should be willing to pay. The best lead suppliers offer leads at various value-based pricing levels, allowing you to buy, for example, premium, real-time leads versus slightly older leads offered at bulk rates, or a combination of the two. Many slightly aged leads represent bona fide prospects who simply have a longer time-to-purchase cycle.

Leads generated by your company’s own online marketing efforts may cost less, but the closure rate for leads generated from internal campaigns was less than 20% for two-thirds of business services firms recently surveyed by InsideUp.

Leads from any source should never be evaluated on subjective measures, but tested – and return on investment is the best measurement. Be sure to keep your ROI expectations reasonable, however; don’t expect a $1000 lead spend to turn a $10,000 profit within six months.

When determining ROI for purchased leads, the thing to measure isn’t the initial cost per lead but what your new Customer’s Lifetime Value, or CLV, is over several years. The repeat purchases from each customer can add up to several thousands of dollars over the years of your business relationship. (Check our blog on CLV here.)

Results: Compare, Compare, Compare

One of the best ways to get an accurate picture of how purchased online leads perform versus other lead sources is to create a comparison table or model based on transaction data and campaign results. Include revenue, market share and profits, volume, conversion of leads and direct response metrics. See which ones perform better.

After weighing such factors as lead-to-sale ratio and average profit margin for each sale, many marketers have found that higher priced leads usually have appreciatively higher performance results.

Once you’ve gained a thorough understanding of the cost to value relationship of leads, you’ll find that complementing your own marketing efforts with quality leads from a lead generation company can be a very cost-effective means of reaching your sales goals.

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Using Customer Lifetime Value to Plan Your Lead Generation Budget

Saturday, September 4th, 2010

When it comes to purchasing leads, how do you know how much of your marketing budget to invest? With a few simple calculations, you can be sure you’re on the right track, knowing that your expenditure is more than just a leap of faith.

Marketing executives at business services firms feel frustrated when they don’t see an immediate return on investment from leads, especially if they are evaluating leads from a new source. Sales cycles for most business service companies’ average about three months. And even if the lead is qualified, will it take some time for revenue to be generated from the provider of your new leads.

Furthermore, the marketing metrics being used to measure leads are not necessarily the right ones. For example, if your average sale per customer results in $250 in profit in the first year, and you purchase 10 leads at $25 each, with a ten percent conversion rate to acquire that new customer, you might feel concerned that you essentially broke even on your initial marketing investment.

However, customer lifetime value (CLV) is increasingly being used as an appropriate measure of lead value. CLV reflects the present total value of a customer to the company over his or her lifetime. When we discuss CLV, we typically refer to the value of a single customer, using the average sales of such a customer. The model of CLV can be broken down as a function of these three elements:

  • TP: Total Annual Profit (Total Sales – Cost)
  • TC: Total Customers
  • CL: Average Customer Life (in years)

Using the elements, customer lifetime value is calculated as CLV = TP X CL.

Although CLV could measure the customer’s value over his or her lifetime, most marketers use three years (based on considerations surrounding product life cycle, customer life cycle and profit calculations).

Now when you calculate the CLV of a single customer, you will see just what the true value is of your investment in leads. Plus if you factor in any repeat or additional purchases made by each customer, that $250 profit can turn into several thousands of dollars over the term of their relationship with you.

Companies such as Amazon, whose average customer purchase is about $20, typically spend much more than that in marketing dollars to acquire each customer. Why? Because they look beyond the initial buying cycle to realize that over a period of several years, that customer will likely spend thousands of dollars.

Generating qualified leads can be a complicated process, but a good lead generation company can specifically tailor the lead acquisition process to the needs of your business so you can be assured of receiving quality leads…leads who are actively seeking the services you provide…leads who will most likely convert to longtime, valuable customers.

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Inbound Marketing—Why it’s Less Expensive and More Effective

Wednesday, April 28th, 2010

imboundIt seems you can’t go online, turn on the television, or even step outside without being bombarded with advertising by companies desperately trying to convince you of their superiority. Most people, however, are so accustomed to these ads, they simply tune them out. Which is bad news for the B2B marketers who are still spending much of their budget on these outbound lead generation methods.

That is exactly why many businesses, especially small and medium sized ones, are gravitating toward inbound marketing methods. Unlike outbound marketing, where companies cast their advertising “net” out on the waters along with every other business, and hope it lands in the right spot, inbound marketing draws customers by offering valuable information, and the opportunity to find out more about your company via online interaction.

Inbound marketing is more effective in establishing a relationship with your prospective customers, giving you the chance to become a reliable resource for business advice in your area of expertise. Once you have established this kind of trust with people, your company will be the natural choice when they need to make a purchase.

Another key reason for this shift in marketing focus is that, according to a new survey by Hubspot, the average cost per lead generated through inbound marketing is sixty percent lower than that of leads obtained through outbound marketing. The survey found that marketers spend an average of $332 on outbound marketing to generate one lead, whereas inbound marketing produces leads at an average cost of $134 each.

Inbound marketing does, however, take a commitment. You will need to not only establish your company’s blogs and other social media channels, but also cultivate and nurture them. But in time, if you consistently serve up information your customers find useful, you will begin to develop a loyal following, and your efforts will be rewarded.

In the meantime, you can jump-start your inbound marketing campaign by purchasing leads from a lead generation company that uses inbound marketing methods and allows you to interact with your prospects, learn about their business needs, and even give quotes for your services. Your cost for these leads will most likely be even less than what you will spend on your own inbound marketing efforts, and will be of the same, or superior quality.

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Four Factors that Separate Real Time Leads from Lead Lists

Saturday, April 10th, 2010

qualified leadAccording to the Direct Marketing Association, 65% of business-to-business marketing is focused on lead generation. In the quest to maintain a constant stream of leads, many companies choose to purchase leads from a lead supplier. This can be an excellent way to boost your sales, provided you are getting high quality leads.

Many “lead” suppliers, however, are really only providing you with a list of contacts at businesses which may or may not have an interest in buying from your company.

When purchasing leads, it’s important to keep in mind what actually defines a lead. According to Business Dictionary.com, a sales lead is an “inquiry, referral, or other information, obtained through advertisements or other means, that identifies a potential customer (prospect).” A true lead will be:

1. Actively Seeking Your Services

A true lead is not just a name on a list, but a person who has demonstrated interest in your services. And a warm lead will have indicated, through their actions, that they are highly motivated and ready to buy now.

2. Verified Contactable at the Time of Your Purchase

List providers typically update lists on a monthly or semi-annual basis, leaving it to the buyer to verify the leads. Quality lead suppliers will provide leads that have been submitted by the source, so the data provided (e.g. employee size) is more accurate than that from any other business data source.

3. Highly Targeted and Matched to Your Business

The quality of your leads is also largely determined by the extent to which you can profile your prospects based on the unique capabilities of your business. In the case of list providers and generic online lead suppliers, the lead provider does not interact with both the buyer and the service provider, which means they cannot target prospects on parameters unique to your business.

4. Rated by a Detailed Scoring System

Lead generation companies that sell fresh, dynamic leads analyze prospects based on web page activity, frequency of visits, and accuracy of information submitted. Such highly targeted leads are simply not possible with a purchased list of potential buyers.

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Beat the ‘Numbers Game’ by Buying Low-Cost Leads in Bulk

Tuesday, March 23rd, 2010

low costIdeally, in order to achieve real growth in your business, you should maintain a steady stream of premium, real-time leads. In reality, however, there may be times when budget considerations or lack of sales staff compel you to look for ways to ‘fill in the gaps’ between premium lead purchases.

Many companies have found the perfect solution is to buy leads that are lower in cost, but still offer excellent value. A bulk lead purchase from a ‘lead clearinghouse’ can work as a complement to your core lead acquisition methods.

These leads, although not real-time, are still valuable, as many B2B service seekers will take up to two months or more to make their final decision. This gives you the opportunity to nurture these leads and begin to establish a relationship with these potential customers, building their trust in your company as a source of helpful information.

There are a number of other advantages to purchasing slightly aged leads. The lower cost of these leads, which enables companies to purchase a large amount of leads at once, is one of the most obvious. You will also be able to browse available leads by criteria such as company size and other details and finer points about each lead that are not always available with real-time leads.

Leads obtained from a lead clearinghouse can be the ideal solution for businesses that do not have a large sales staff, and are therefore not always able to contact a real-time lead within those crucial first few minutes. These slightly older, surplus leads still hold great potential, however, if your company is prepared to do some nurturing.

Many companies will find that purchasing a combination of real-time and bargain leads works well, bringing immediate ROI from the premium leads, along with the huge potential of later sales from the large quantity of specially selected bulk leads.

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Can Your Business Get by Without Buying Leads?

Sunday, March 14th, 2010

businessIf the marketing campaigns you have in place are producing a certain amount of leads for your business, you may wonder if it’s really necessary to purchase additional leads from a lead generation company. And if so, what kind of returns can be realized by using such vendors? There are actually several compelling reasons for considering this step.

The first is obvious; what company couldn’t use more leads? But on closer examination, you will see that leads purchased from a lead generation company have some clear advantages. Even companies with their own sophisticated lead-gathering strategies regularly purchase additional leads, for the following reasons:

1. Lead Gen Companies Capture Leads You Would Otherwise Miss

Many of your potential customers simply will not submit their contact information to an individual vendor, finding it more efficient to utilize a service that offers pricing and feature comparisons of several vendors simultaneously. Many such services have a platform that allows seekers to be matched ONLY to vendors that meet their specific needs and business profile, and to receive competitive bids from each vendor.

2. Leads from a Wider Variety of Sources

Lead vendors have a diverse repertoire of lead-gathering methods, and can bring in leads from a broad range of online sources such as opt-in email, video advertising, white paper syndication, social media marketing, and contextual advertising, to complement or exceed your own lead generation tactics.

3. There is No Such Thing as an Exclusive Lead

In fact, the average person will leave contact information with at least two or three other vendors when researching companies. So if you’ve been reluctant to purchase leads, believing that there is more competition for these buyers, you could be missing out on one of the richest sources of leads available.

4. Your Results are Guaranteed

Lead generation companies are the only source of leads that come with a performance guarantee; you will only pay for qualified leads that have verified contact information. No wasting of expensive clicks, or having your sales reps deal with non-qualified leads.

Of course, if your own marketing endeavors are producing a stream of leads for your company, you should definitely continue to develop these, but going a step further and purchasing qualified leads can really push your business forward.

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