Sales leads are a representation of some sort of interest from an individual or organisation. The idea behind these leads is that they could potentially lead to some sort of sale or even long-term business relationship.
The definition of what a lead is can vary but it usually it means some sort of commitment- for example a potential customer’s email address, social media information or agreement to subscribe. Basically, any sort of connection which can allow the company to convert potential customers in to actual customers.
As leads are an avenue to business and the technique of lead generation has become incredibly popular. Many companies have specific employees or even departments which are responsible for securing leads. Other businesses choose to outsource this service and opt for a designated lead generation company. Either way- the general approach is to pay per lead but is this the best way to get results?
One of the main problems with paying per lead is that it fosters an approach which prizes quantity over quality. This can be an issue as securing a lead doesn’t always mean it will progress to a significant relationship with a company. This is where lead nurturing is required- unfortunately many lead generation organisations choose not to go out of their way if they’ve already earned their money from simply identifying the lead. A good example of this would be acquiring emails- which would technically generate leads but how you use those email addresses is just as important. Sending high quality content or personalised adverts would be an example of lead nurturing.
Building upon this idea, many marketing companies will focus much more on achieving leads than converting them. Some companies will even coerce the potential lead in to providing information, even when they know it won’t go any further. Of course, these techniques aren’t beneficial to the business who employs them, who end up wasting time and money chasing after a customer who isn’t interested.
Brand reputation can also be factor when choosing to use pay per lead techniques. When employing a marketing company, it is important to research their practices and their overall approach to business before starting a relationship. These people will be representing you when conducting lead generation and therefore any negative behavior will reflect poorly on your own brand. Make sure to choose a company that are passionate about your business and will work beyond generating leads- into lead nurturing and overall sales.
Although the pay per lead model isn’t a “one size fits all” solution- it is still incredibly popular and for good reason- it does work well in some cases. For example, if you have a product that is easy to sell or you’re aiming at existing customers. Basically, situations in which customers can be convinced of a sale quickly and easily.
One of the ways in which pay per lead is changing is through social media. Networks such as Twitter and Facebook allow for these types of ads and will actually place them directly on to the user’s timelines. This means the ads are easily accessible, customisable and because they utilise personal information that those networks have already collected- people find them more trustworthy. Therefore users are more likely to engage with the ads honestly- providing accurate information.
Lead generation is a powerful tool but most of time it has to be used in conjunction with other tools. Whether that be native advertising, content marketing or traditional advertisements. It’s also worth pointing out that money is key when it comes to service- you get what you pay for. If you are employing an agency to provide leads, you need to keep in mind that going above and beyond simple lead generation will cost more. But this type of investment will ensure that these companies not only generate leads but also nurture them, making it more likely to progress to a long-lasting relationship between you and the customer.