When planning your marketing efforts, in the event you cast a broad net to find plenty of leads, or a narrow net to find highly qualified leads? Here’s how exactly to decide.
Editor’s note: This article is excerpted from Marketing Made Easy . Think it is on EntrepreneurPress.com.
When establishing a marketing plan, the first planning decision you will have to make is that of quantity vs. quality of leads.
When your money and time be spent in a concentrated fashion, courting a few potentially extremely valuable customers? Or in the event you cast a broad net, spreading your contact information so far as possible, in the hopes of catching a more substantial number of less individually valuable customers?
The answers depend on the stage your business is in, the breadth and sophistication of your audience, your price-point, and the complexity of what you’re selling. For instance, consider the marketing of expensive, complex items such as for example passenger jets or nuclear power plant turbines. The quantity of potential customer contacts generated by your marketing is less important than achieving the correct high-quality contacts with an extremely deep and sophisticated marketing approach. For jets or turbines, relatively few folks are critical to the purchasing decision. It’s more vital that you reach them than a large number of individuals who don’t matter.
Conversely, for inexpensive, simple items such as for example MP3 players, level of buyers is important. Marketing for maximum market share and end-consumer awareness creates success.
To comprehend the tradeoffs, consider:
- Quality (more expensive per lead)
- Quantity (less expensive per lead)
- Why the tradeoff exists and matters
Understand those three aspects, and you will understand when each marketing approach should take precedence, and what "taking precedence" actually entails in tactical terms.
Quality (MORE EXPENSIVE per Lead) When product price is higher, complexity of product or installation is higher, or value per deal is targeted in a few larger deals, the standard of leads includes a direct correlation to sales efficiency and success. The valuable audience you have to market to will contain just a few specific individuals. In this example, accurate targeting of marketing efforts is of more importance compared to the level of contacts created. Why? Cost. It’s likely that the purchase process will be extensive and extended–that each potential customer will demand customized, in-depth education about your offering and its own benefit to them.
So it is vital that you expend marketing efforts on only the right contacts. More research and planning time spent before programs launch, and investment in higher-value marketing programs centered on a select few individuals can lead to more revenue.
Examine these types of how such tightly targeted marketing programs might differ in implementation from more mass-market-oriented programs:
- E-mail: Rather than using mass-mail-merge and large purchased generic lists, send an individual e-mail to the prospective contact from an analyst linked to the prospective company, with a "cc" to the marketing or salesperson from your own company being introduced. .
- Seminars: Don’t hold large, anonymous hotel or stadium-based events; rather, arrange in-person meetings or small executive-level forums or individual lunches. .
- Direct mail: Rather than generic postcards, send direct mail via FedEx, with an individual note from you, as your company’s CEO, on wedding-invitation-quality cards. .
- Materials: Rather than generic case studies, use specific examples as put on the prospective company’s own systems, cost structure, and environment, showing detailed knowledge and knowledge of the most crucial issues, and how your solution helps.
In sum, high-touch personal marketing will always enhance the quality of your leads if initially fond of the correct market. But such marketing is expensive on a cost-per-lead basis. You will not be exposed to as many folks, so success depends significantly on the capability to tightly define the prospective audience prior to shelling out for them.
Quantity (LESS EXPENSIVE per When the merchandise price is relatively low, number of units sold is relatively high, and individual deal size is relatively small, many sales must be designed for the business showing revenue growth. In these situations, your marketing goal ought to be a lesser cost per lead, so you maximize the amount of people you reach on your own fixed budget. Usually a quantity-driven product includes a short purchase process, and one where decision authority is minimally permuted in a organization: only 1 person must be convinced of your product’s value for you yourself to make a sale.
Marketing efforts can thus be relatively straightforward and minimally customized, using larger volume and lower cost-per-target programs. Standard marketing programs might include:
- E-mail to lists purchased from magazines or industry events.
- Webinars or open seminars by city.
- Direct-mail postcards.
- Mass-produced materials, with generic case tests by industry.
With the above caveat at heart, allowing your marketing message to depersonalize–to regress to the mean–can already have a beneficial influence on lead flow, as your programs seek to attract as much as possible of the specified (large) segments. Put differently, a particular message applies perfectly to a narrow group of individuals; an over-all message applies less perfectly to everyone. So whenever choosing between quantity and quality, err privately of quantity (within limits)–as giving yourself more options when choosing prospective customers, you’ll likely boost your overall revenue.
Why It Matters More isn’t always better. To generate leads costs money, and in the event that you generate way too many leads–in that your capability to follow-up on leads is overwhelmed–valuable leads are ignored and lost as opportunities.
Because the only thing worse when compared to a potential customer who hasn’t found out about you is person who wanted to obtain you and was ignored (so far as they could tell, you couldn’t be bothered to get hold of them and take their money), it is advisable to balance the worthiness of annoyed lost customers against nonacquired customers.
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