We are constantly telling lead buyers that the performance of a lead generation campaign should be compared to the performance of other marketing spends. The true power of lead generation as a marketing tool is most clearly visible in this context.
The following is a genuine anecdote from one of our customers. The company in question is a large regional finance company and recently they ran an advert in their local yellow pages for the duration of a year. The total cost of this campaign was £2,500 – a fairly significant sum of money in the current climate. So, what was the result of this campaign I hear you ask? Well, the advert generated 6 enquiries in total throughout the entire year!
Now, there is value in many different forms of marketing but it you just compare this spend to a potential lead generation campaign then it’s not hard to see where the money should go. Let’s assume for example that the company wanted to target customers looking for life insurance in their local area. Lead generation would allow them to do this. At the current time of writing, life insurance leads cost around £35 and some lead buyers are converting more than 20% of these leads. So for £2,500 they could have bought 71 leads and they could have expected around 14 to convert into business.
So the question is, which form of marketing would you choose?
I have been in the insurance business for several years and have tried all sorts of marketing such as signs, flyiers, newspaper ads, yellowpages, and attempts at my own websites, but online lead generation services have always provided me with a much higher return on investment an now is my primary marketing source. The other factor in deciding to use online lead generation is time. It is a lot more convenient to focus on selling than coming up with effective markeing peices.
Posted by: agent tips | February 21, 2009 at 06:54 PM