A sales lead is an individual or company that has the potential to become a customer. Although there are many different types of leads, they tend to be split into cold, warm and hot categories. Cold leads are prospective customers who are likely to buy from your company, but haven’t shown any active interest. Warm leads are those who have already inquired into the company, its products or services-whether that be through getting in touch, asking questions or leaving contact details. Hot leads are those who are basically ready to buy immediately. Obviously warm and hot leads offer more potential but any type of lead can produce a sale.

Generating leads has become a massive aspect of business, affecting both marketing and sales. This isn’t surprising, considering that leads produce customers and customers lead to sales- which is the make or break of any business. We know how important lead generation is but what are the best methods for generation and what about quality?

Databases

All forms of lead generation will require some sort of investment but the most straightforward transaction in simply buying leads from an outside source, such as a database. The main benefit to this approach is that it offers a large amount of leads, instantaneously- therefore it’s best suited to younger companies who are looking for an early boost. However, there can be many drawbacks to utilising lead databases and it mostly comes down to quality. When purchasing leads from another source, there are no guarantees. The leads could be old and therefore useless or the database could include leads that are of low quality- for example current customers. The decision to use databases will depend on the individual business and its specific requirements.

Social Media

As with all aspects of marketing, social media has become an important part of lead generation. All of the major networks can be used in order to gather leads- Facebook, Twitter, LinkedIn, Instagram etc. Obviously, the main goal is to direct a potential customer to your website but any sort of connection can be meaningful. Social media is particularly useful for general brand recognition and awareness. When users interact with your social media, they instantly become leads- not necessarily warm leads but the potential for conversion is there.

Whilst all of the social networking sites can be utilised for lead generation, Twitter is particularly good. This is because it’s a massive network and users tend to have a wider net when it comes to who they follow or search for. It’s also worth noting that hashtags can be a fantastic tool, allowing companies to identify high quality leads- quickly and easily.

The best way to utilise social media for lead generation is to post regularly and to utilise tools such as hash tags and landing pages in order to direct consumers to your products and services.

Content Creation

In the past, prospective customers would normally contact a company to find out more about products or services. However, with the rise of the in the internet, customers now undertake their own research in order to make an informed decision prior to a purchase. Therefore, the information and content that businesses publish can play a pivotal role in the acquisition of leads and converting and conversion.

Content can include a wide range of different formats- from blog posts and articles, to product directories, social media and vlogs. Whatever type of content that is created, the key is to post regularly and keep the quality high. Good content is one of the best ways in which to convert cold leads in to paying customers.

Advertisements

Online ads offer a relatively straightforward and effective methods for generating leads. There are many different types of online ads, including pay per click, display, retargeted, native and social media varieties. The main benefit to paid advertisements is that they can be precisely targeted, therefore you’re more likely to generate warmer leads with a greater chance of these becoming customers. Using paid advertising is also generally easier than other techniques and tends to be more of a quid pro quo approach.

The drawbacks to advertising are the expense and the fact that it can deter potential customers due to the overall disdain for this marketing technique. The decision should depend on whether the potential gains outweigh the cost.

Marketing has always been an important – even back when it was adverts in the newspaper or billboards. However, we now live in an online world in which the vast majority of consumers are permanently plugged in to the internet via smart devices. The online sphere has completely changed the way in which businesses approach marketing, offering an incredibly powerful tool at their discretion. However, online advertising involves so many different factors and it can be daunting to know where to begin.

Goals

One of the main pitfalls when creating an online marketing strategy from scratch is attempting to do everything and, in the process achieving nothing. There are many avenues to choose from- SEO, brand recognition, Google, viral marketing, content, lead generation and the list goes on. Going in to the process without setting out a plan isn’t likely to garner success. Preparation is key and deciding which aspect or aspects of advertising that you’d like to employ will not only streamline the overall process but will also help to save time and resources. Map out the campaign ahead of time and this will offer a clear roadmap to follow.

Target Market

Who are you selling to? That is a vital question when designing an online marketing campaign. The vast majority of businesses will have some sort of idea on their target audience but precision is important. Relying on broad categories such as gender, age or location are unlikely to focus marketing in the way that is required. A much clearer, more detailed insight in to the target customer is required and this can only be achieved through research. Whether it’s the use of surveys, test products, analytics or ideally a combination of everything, research is paramount. Interestingly, companies are often surprised to find out that their actual customers differ from their target customers and have to adapt accordingly.

In-House or Contracted?

Choosing whether between in-house marketing and outsourcing to a dedicated agency will depend on different factors, namely the scale of the campaign and the budget. If you’re looking for a multi-pronged approach that will require a heavy investment of time and effort, it may make more sense to employ a third-party marketing agency. They will have the experience and resources required but this will obviously require a hefty budget. If budget is an issue or if your project is smaller, then in-house is best. A dedicated marketing team is a massive advantage but not always tenable, especially with smaller companies. Tailor the project to you and the resources available to you.

Search Engines

Search engine results are an important aspect of marketing, whether it’s through the use of Search Engine Optimisation (SEO) or Pay Per Click (PPC) advertising. The overall aim of the majority of companies is to rank high on search results- namely Google. The organic way of accomplishing this is to encourage searching through high quality content or brand awareness. This isn’t always easy so many opt for SEO, which involves the use of keyword rich content in a way to boost your ranking in results. This is a viable approach but takes time and effort. Conversely, you have PPC adverts which are bumped up in search results but obviously these are paid for. However, it’s worth keeping in mind that businesses only pay for the advert when a consumer clicks on it. Both techniques have been very popular in recent years but there’s definitely a shift happening towards more modern, organic approaches.

Social Media

Social media is the single most valuable tool for marketers. This is because it provides a direct connection between the business and the potential consumer. It’s also a platform that allows for a variety of marketing techniques- whether it’s traditional PPC adverts, content publishing, viral posts or just brand awareness, social media is incredibly versatile. However you choose to utilise sites such as Facebook, Twitter, Instagram and YouTube, a continual and vocal presence is paramount. Post often and engage with visitors and this will boost your overall social media strategy.

Review

Planning and launching a marketing campaign is only half the battle, continual assessment ensures long-term success. Not everything is going to work and that’s fine but evolution needs to happen in real-time. Utilise analytics, customer data and feedback in order to gauge which aspects of your marketing campaign are hitting the mark and which aren’t and change accordingly.

The 80/20 rule has been a part of the business world for many years but it actually goes back much further than that. It originated with an economist called Vilfredo Pareto in the late 19^th Century, which is why it’s often labelled ass the Pareto Principle.

The idea behind this rule is fairly simple, stating that 80% of something good is generated by only 20% of something else. Back when Pareto came up with this theory, he was talking about land- more specifically that 80% of the land was owned by only 20% of the people. This idea was born from a socialist perspective and was objectively correct. In fact, it’s common knowledge in today’s society that the vast majority of wealth is owned by a small percentage of people.

Conversely, the 80/20 Principle jumped over to the business sphere- an irony that wouldn’t have been lost on Pareto. The idea has been applied to a variety of relationships but the one that gets talked about the most is the theory that 80% of sales comes from only 20% of customers.

It’s clear to see why this idea has become so popular amongst those within the business sector- it’s music to their ears. If the majority of a company’s sales is only coming from a relatively small section of customers then promotion becomes infinitely easier and cheaper. Aiming all of your resources at a select few is always going to be an attractive option- especially compared with the alternative which is casting a wide net, taking extra time, money and effort.

So, is the 80/20 rule valid or is it an urban myth that won’t go away? Short answer is- it’s a myth. Yes, there are examples in which companies receive the majority of their sales from a small number of customers but it’s rare. Not to mention that sales fluctuate constantly, with some customers leaving and new customers joining. Therefore, it would be next to impossible for this 80/20 ratio to be a hard and fast rule.

One of the ways in which this idea has been able to take hold is because companies refuse to actually sit down and work out their numbers. Having a real-time view of sales and customers can be invaluable as it gives businesses an advantage when it comes to marketing.

Another point to consider is Sharp’s “Law of Buyer Moderation” – which basically states that you can’t extrapolate buyer behaviour using limited date. For example, there is no guarantee that a customer who makes many purchases one year will repeat this in the next. The marketplace can be volatile and customers are often unpredictable, especially when you’re trying to fit them in to a strict ratio.

Furthermore, whilst the 80/40 Principle is attractive in some respects, it may not be something to aim for. If a business is relying on a small number of customers for the majority of their revenue, that’s a very precarious place to be in. The company would only have to lose a small percentage of customers in order to notice a dramatic dip in sales. When the customer base is larger, the risk is spread out further and the likelihood of crashes is reduced.

Whilst it’s clear that the Pareto Principle was never a great fit with business- there are circumstances in which companies rely on smaller pools of customers for the majority of their revenue. For example, high end fashion and other luxury items. In situations such as these, it would make sense to target these particular customers. However, even in these rare cases, businesses would be foolish to ignore the vast majority of customers who make smaller purchases.

To summarise, whilst it may be an interesting concept, the 80/20 law is far too rigid to apply to the diverse and ever-changing world of business. It may be costly and time consuming but reaching out to a wide range of customers and potential customers, regardless of how much they buy is still a tried and tested roadmap to success.