lead generation - how to choose the most effective strategy
TRANSCRIPT
How to make effective decisions on lead generation strategies
Yafit DavisBringing Sales Into
Marketing
The Problem• We live in a busy world• There are many viable options to generate
leads•How do you decide?
Go Back to the Drawing Board •Make sure you apply a consistent strategy – don’t just make random decisions…• You are allowed to make mistakes as long as you learn from them•Measuring the outcome is key even if it’s hard work
Ask yourself a few questions •Remember your target markets: Are they likely to be covered within the method you are considering?Are you actually trying to grow this sector at the moment?
Make sure it’s the right time for your business •Do you have the budget/ cashflow available to cover the cost?•Do you have the resources to follow up on enquiries and deal with the extra work?
Listen to Brad Sugars:In his book Buying Customers he defines two types of marketing investments :
Allowable acquisition where the cost you pay per lead is lower or equal to the profit you make per customer, who buy from you as a result
Investment acquisition where you invest in a lead generation method knowing that the profit generated will not cover your cost. This is a longer term strategy made in the expectation that the return will be built on returning customers over time.
Listen a bit moreAccording to Brad, small businesses should stick to Allowable Acquisitions unless they have established, long term and very predictable cashflow
You Decide…
How do you work out acquisition cost?Simples:
Cost of the advert / number of customers you hope to generate = your acquisition cost
Here is an exampleRenewing your Yellow Pages: £1000 per 12 monthsNew customers estimated: 2.5 per month=30 per yearProfit from each sale: £20Acquisition cost per customer: £1000/ 30= £33
Is this allowable or investment?
