Strategic Thinking for Better Lead Generation
In small business, efficient prospecting for new customers (lead generation) is essential for success in achieving revenue targets and meeting other business goals. The myriad lead generation options at the business manager’s disposal all fall into two main categories: outbound lead generation (phone solicitation, direct mail, paid advertising, and email marketing) and inbound lead generation (Search Engine Optimization, social media, PPC).
Which type of lead generation is right for different situations, and how can business managers decide where to put more time and resources to get the most out of your lead generation efforts?
Use these general concepts to strategize and be more successful with lead generation:
Do your customers tweet before they buy? Be certain your customers are using social media before you spend money and time here. Even if your customers use social media, they may not necessarily be using social media to do research for purchases of your specific type of product or services. Social media can be a homerun strategy for Business to Consumer (B2C) products and services, but might not be as relevant for Business to Business (B2B) product categories. Who is your customer? An executive director at a nonprofit organization probably won’t be asking Twitter’s advice first on purchasing a new donor database software. Before adding social media to your comprehensive lead generation strategy, ask yourself if social media is really the best place to find your decision makers.
Where are buyers looking for what you are selling? Online sales are hot in one market and cold in another. A high-ranking IT manager might search Google for information on a faster Ethernet cable or wireless networking system, but they may not be searching for “IT management providers” or “IT consultants”. Referrals are often the biggest drivers of sales leads for this type of high-value B2B service. Or you might find that your B2B solution can best be sold via old-fashioned business development tactics such as networking and cold calling. Do a bit of keyword research – if you don’t see a lot of relevant web searches for what you sell, then your strategy will be most effective with more outbound lead generation efforts.
Media: to pay, to earn, to own – what is the right mix? Traditionally, outbound lead generation requires a business to pay each time they market – think buying a list for a direct mail letter campaign or paying for an advertisement on an online pay-per-click effort. These are examples of “paid media” – you pay to get in front of someone else’s audience. With inbound lead generation, you also invest money and/or time but in these ways: setting up a website, writing content on a website, or identifying and engaging an audience on social media.
Outbound “Paid media” is like renting an audience by paying a publisher or search engine to put your message in front of their readers/viewers/users. Inbound lead generation is also known as “owned media” because it gives your business the ability to “own” a lasting structure to build your own audience and get more sales leads over time. If your team includes people with the know how to write blog articles and create great web content and build a following on social media, then inbound lead generation can be an efficient marketing technique. But be aware that this inbound strategy can take a lot of time and effort to get established and start generating leads, while outbound “paid media” can often be put to work immediately to start generating sales leads.
The strategic thinking business manager must balance inbound and outbound lead generation marketing efforts. No one method is right for any business -- businesses need a diverse, strategic mix to be successful. With a robust outbound marketing program, you can immediately identify and reach out to customers who seem to be the right fit for what you sell. Adding a smartly designed inbound lead generation program will also help you build your own audience to create a long-term pipeline of new prospects who will approach you over time. Creating an effective blend of both types of lead generation can help drive new sales.
