In our experience online marketing delivers a much lower cost per lead than traditional marketing. Even if you take the most expensive, targeted method there is (Paid Search Advertising) you are still only likely to pay £1 or £2 per qualified lead. In comparison, an ad in a magazine or a mail shot is going to work out to be far more expensive per high quality lead.
Rather than us giving you a load of hypothetical prices, figures and estimated conversion rates, we thought it would be far more useful to explain why online marketing is so cost effective.
An Entirely Different Approach
In the past, the only way for businesses to get the message out was to reach as many people as possible. This meant hours of cold calling, sending out expensive leaflets and paying for adverts in key publications. The principle behind this type of marketing was that if you reached enough people, some of them are sure to want what you are offering. Unfortunately, this meant a large marketing outlay and no guarantee of success. It was risky, slow and provided an inefficient cost per lead.
The internet allows business to approach marketing from a completely different angle. Rather than playing the numbers game, the internet allows businesses to accurately target those who are likely to be interested in their services. The obvious example is search marketing. By either improving your visibility in the search engines for your most valuable search terms, you are putting yourself in front of people who are actively searching for the product or service you provide. If you can convince them to visit your website, the chance that they will buy from you is extremely high. Social media is another great example. If you build a targeted community of follower and fans on the major social media channels then any visitors that come to your website through these channels are going to be pre qualified, trusting and ‘ready to buy’.
The traditional marketing model relied on ‘outbound’ techniques. By bombarding people with material, offers and sales messages companies hoped to convince a small percentage to ‘buy’. Online marketing relies on ‘inbound’ techniques. That is, it focuses on companies being found by people that are already searching for them. This approach is customer focused, highly economical and sustainable.
Next time you need to generate some new leads ask yourself this: ‘am I better spending £300 on leaflets or a magazine ad, or would it be better to invest in improving my search rankings?’ With the internet influencing your customers more than ever before, the answer is clear.
Do you currently spend the majority of your marketing budget on traditional marketing? Would you like to know more about how we can decrease your cost per lead and increase your sales? If the answer to these questions is ‘yes’, please don’t hesitate to get in touch.