Which Type Of Lead Generation is Right for Your Company?
Lead generation has been used as a way to increase sales and revenue for decades. From banks and insurance companies to mortgage lenders and more, nearly every type of business has used some form of lead generation to acquire new customers in the past.
While lead generation services have improved over the past decade in large part due to technological advances, some tactics still in use are no longer effective for many companies. As an experienced partner in third party lead generation, InboundProspect recommends that every company examine the specifics of various models and choose the one that best fits their business needs.
Cold Call Lists
The most basic form of third party lead generation is purchasing a list of phone numbers from a company. The lead generation company charges either a flat rate for the entire list or a predetermined rate on a per phone number basis.
This type of lead generation is largely outdated and will likely be a waste of resources for most companies. Marketing managers have no way of knowing how the numbers were generated and if any of the people on the list have actually been pre-qualified. Using this method will usually garner a large amount of hang-ups and wrong numbers.
The only way this type of lead generation model would be beneficial for a company would be to verify the process and timeframe in which the contacts were acquired.
Also known as PPC, Pay-Per-Click lead generation is the process in which potential online customers are acquired via an advertisement. Each click can cost from five cents to twenty dollars and upwards, depending on the industry.
The major drawback to this model is the amount of money that must be invested in order to see any type of return. Depending on the industry, a typical percentage of customers who will convert through a PPC campaign is between 1 and 2 percent of the total amount of clicks you receive. Without the right resources and expertise, companies can often find themselves using a large budget each month on their PPC campaigns alone with little results in the end.
Pay For Performance Direct Mail
Pay for Performance direct mail lead generation is a relatively new form of customer acquisition pioneered by InboundProspect. It combines traditional direct mail techniques with technology, allowing us to provide predictable results. We have experienced great success with this model, which allows us to practically eliminate the risk for our partners while providing high quality, live transfer leads.
Our lead generation campaigns involve cultivating leads through direct mail using carefully targeted consumer segments. Our sophisticated algorithms and statistics garner pre-qualified leads, allowing us to partner with companies on a pre-determined Cost Per Call or Cost Per Acquisition basis.
Many companies in the mortgage, solar, and loan industries find this to be an effective and preferred form of lead generation because they shoulder much less of the financial risk upfront and are able to acquire customers much more easily.
No matter which type of lead generation you use, make sure to understand the benefits, drawbacks, and risks of each before making an investment. Oftentimes, many lead sources are used to fulfill a company’s needs. If you are in need of a scalable, innovative lead generation solution that will help you reduce the time and expense required to acquire the customers you need, contact us today.