The Cost Of Lead Generation

In his Business2Community blog (and infographic) “Examining the Cost of Online vs. Offline Lead Generation,” Koka Sexton digs into the price tag of leads. The top-level insights are summarized briefly below:

• The cost of offline leads is estimated to be between $300 and $500.
• The online lead typically costs between $25 to $30.
• The conversion factor of face-to-face offline prospects becoming customers is 40%; online virtual prospects come in at 18.5%.
• The pressure is higher online: 17% of the offline leads feel pressure in the follow-up stage compared to 23% of online leads that feel the heat. (It is believed that the sales pressuretactics is stronger/leads are more sensitive after the successful qualification status).
  

In looking just at online customers, there were some interesting findings:

• Immediate follow-up produced a 34% lift in results.
• People that receive a query within the first hour are 60 times more likely to convert than the people who receive any information after 24 hours.
• Additionally, customers are seven times more likely to convert if you call them within the first hour, not an hour later. And, once you cross the 20-hour mark, each contact your sales person makes hurts your ability to qualify a lead.
• While no one attempts to contact their leads in the first five minutes (less than 0.9%), only 29% of companies attempt any sort of contact within the first four hours – missing a huge window of opportunity.
  

If you are curious about inbound vs. outbound leads, traditional outbound marketing is about $373/lead where inbound marketing leads are 62% less at $143 per lead.

While there is no “better” customer, there are fundamental differences between your offline and online customers. Relationships formed online have different expectations, too. These customers expect things to be smoother, faster, and easier than in-person transactions. Make sure you fulfill this need, making any next steps (i.e. digital signature options) as smooth as possible.

Online leads can feel easier, since engagement can be high in the beginning stages, but conversion can be trickier online vs. face-to-face. Whether you make offline or online your primary source of lead generation, it’s critical to realize that 1) you need it and 2) it will take plenty of work on your end. As soon as you meet your prospects, you are on the clock. Ensure that your follow-up is immediate, relevant, and irresistible if you want lead generation to be a proven strategy for your business game plan. Remember, timing is everything. Now, go get your leads!

This article is made possible by Checksforless.com. For more than 35 years, Checksforless.com has provided over 500,000 businesses with high quality business checks, deposit slips, and other banking supplies with easy ordering and fast production times; all at the guaranteed lowest price in the nation. Our discount business checks are easily customizable and compatible with over 4,500 software programs including QuickBooks® and Peachtree/Sage®. Email or call us toll-free at 800-245-5775.

References:
http://www.inc.com/dave-kerpen/6-small-business-trends-for-2015.html
http://www.business2community.com/infographics/examining-cost-online-vs-offline-lead-generation-infographic-01637735#IX4DhdYtYUVD6Lxo.97