Lead Generation Blog

Leads From Under the Bed

June 27, 2008

Question 1: How do you generate leads in a category when your potential customers seem to be hiding under the bed? That’s essentially the question many financial marketers are asking.

Offers that worked for many years have seen much lower response. We’re talking about staples such as primers for investors new to a category or webinars for more advanced investors. Response rates have dropped as the markets have.

So what’s working? Many financial marketers are succeeding by directly confronting the worry that’s in the market today – either by showing there are alternatives or by appealing to the contrarian part of human nature. How does this work? In effect, remind consumers that avoiding the markets doesn’t solve anything. It is better to take some educated action, to try something new, to take advantage of others’ fear. For the contrarian - history has shown that the best time to buy is during the greatest despair. Stake out a position as an alternative and you’ll attract the right prospects.

To make this work well, marketers need to rethink their products as well. Sensitivity to down or turbulent markets is just a band aid if the product doesn’t offer tangible solutions to downside protection or leverage.

Question 2: Why should you care about the plight of the poor financial industry if you’re looking for leads in other categories? Because financial is often the leading indicator for what will happen across the economy. Marketers of discretionary products need to plan how they can change messaging and product attribute to continue to attract new users in a less affluent time. Timeliness – recognizing new realities of consumers’ economic life – shows you get it.

Performance advertising is the ideal laboratory to measure which alternative messages work. What attracts opt-in and makes money in CPL applies to the broader marketing plan.

Posted by Gary Kreissman in Lead Generation | 1 Comment

Things To Know About Maximizing Lead Performance

June 13, 2008

I just read a very interesting article on MediaPost.com: Four Strategies For Maximizing Lead Performance. There are many important things to consider when it comes to optimizing lead performance. First, it is important to realize lead generation providers are not simply money making machines. They may have a very logical and profitable business model in place to generate leads for your business, but an effort needs to be made on both ends. “A vendor can provide the greatest, most eager leads in the world, but if they aren’t responded to quickly and persuasively, they soon begin to diminish in value.” It is important for the advertiser to recognize that publishers use different varieties of inventory which can have a significant impact on the lead quality. Companies should recognize the importance of communicating with the publisher on the lead quality so they can adjust the inventory and placements.

“Some advertisers even score performance by source ID, giving their lead provider granular insight on the performance of their traffic sources.” I believe this statement to be true. As long as vendors provide a source ID corresponding to each lead generated the advertiser should have no problem communicating the lead performance in a timely fashion.

Although this next statement is a cliché, I find it to be an essential strategy to consider in the lead generation business — Timing is everything. Vendors can send the most qualified prospects who are actively interested in a particular product, however you MUST follow up with these prospects immediately. The time sensitivity for follow up communication varies from one sector to another. For example, health offers vs. investment offers have different follow-up timing criteria to optimize conversions. There is a general rule of thumb that lead quality decreases over time exponentially. In my own experiences, I have found this to be true — I had a client whose conversion rates increased by 10% simply as a result of starting to follow up with the delivered prospects immediately instead of the following day. This goes to show how time sensitive the lead quality is to the advertiser. I believe the two most important aspects to maximizing lead performance is effective communication with the lead provider and follow up response time.

Posted by Eric Schwartz in Lead Generation | 1 Comment

Leads: Can’t Live With Them, Can’t Live Without Them

June 3, 2008

As we turn toward tighter economic times, we increasingly see the squeeze on marketing dollars. What started out as a MarCom Mangers’ dream of a media mix is leading toward strict media buys with “guaranteed results.”

CPL/CPA media jargon oozes out of our mouths with the equivocal promise of, “The streets are paved with gold.” Expectations are locked in a vicious circle between sales teams to marketing departments, to media agencies, onto publishers and back to sales teams. The term lead is highly subjective and becomes a convenient foundation of a love-hate relationship. Leads: Can’t live with them, can’t live without them.

Lead gen is purchased in hopes that the majority of the output is not only perfect (just short of receiving the respondents social security number and blood type), but will sign on the dotted line upon the first call or email. I know others in the lead gen provider space can agree with me that CPL is just another branch in a media mix. Advertising, by Wikipedia’s and my Marketing 101 professor’s definition, is a form of communication that typically attempts to persuade potential customers. Name generation is a form of communication in attempt to persuade potential customers with collateral in return for their name (real or pseudo name).

Like other forms of advertising that preceded CPL, this is not an exact science. As we near the halfway point of 2008, it is safe to say that all those using the internet are very well versed. The jig is up and registration pages have lost their shine. Super savvy internet users know the catch behind providing their very sacred information in return for a “free whitepaper.”

This conundrum is plaguing CPL providers everywhere and I say the expectation needs to change from the source. “Hey there sales and marketing teams, lead gen works.” You need leads and we can provide that. We can guarantee that all leads generated were interested, we can assure you that most were just researching, we can speculate that some will give false information to avoid contact, and we know that there are a select few that with the proper sales follow up, will be a valuable customer. We, the lead gen provider, can get you several steps closer than that connectionless banner ad or that Interstate 495 billboard.

Leads: Can’t live with them — Not all leads are going to be perfect.

Leads: Can’t live without them — CPL programs take the prospecting work out. Just like “No PR is bad PR”, I am putting my foot down and saying, “No lead gen programs are bad lead gen programs.” With lead gen, your company name is out there, your offers are out there, and you are getting qualified respondents to follow up with.

Posted by Sharon Joseph in Lead Generation | 1 Comment

Handheld Mobile vs. Computer: How Do You Check Your Email?

May 29, 2008

In the age of the BlackBerry and iPhone, the sky is limit to where you can access your email (and even that will soon be possible). I came across an article on MediaPost that discusses the issue of email marketing in this new era of alternative ways to check your email. The article debates whether email marketers should want their recipients to use handheld mobile devices to read email, or if they should just accept the change in email viewing practices and adapt to it. This is a very important issue to ponder since not all emails can be correctly viewed by a handheld. Therefore, some email marketers argue that they do not want people to open their mail via BlackBerry because they may not see what they want them to see. In addition, since part of the message may be disabled, the user may not be able to sign up for the offer, open an account, or make a purchase which is ultimately the objective.

On the flip side, the counterargument is that instead of fighting the use of handhelds for email usage, email marketers should accept the change, and make all emails compatible with mobile devices. The BlackBerry and iPhone provide it’s users with quick access and convenience. For the person on the go, which many BlackBerry and iPhone users are, checking email via computer can be a hassle. The article states that according to a Marketing Sherpa study, “64% of key decision makers are viewing your carefully crafted email on their BlackBerry’s and other mobile devices”. Therefore, this argument supports the idea that email marketers need to “get with the times” and work around the convenience and lifestyle of the consumer, because in the end the consumer’s best interest is their own best interest.

This article raises a very interesting question: Should email marketers accommodate the changing consumer? Or should email marketers keep what they know works?

Personally, I agree with the argument that email marketers should change with their consumer. With the constant expanding of technology, people have become used to convenience and now expect it. The consumer is out for their interest only, and is not concerned with how difficult a job it may be for the email marketer to get emails out to them. The email marketer needs to accept that fact, and create a strategy around convenience for the consumer. Once that is put into plan, I believe the email marketer will see a positive return from the consumer.

Posted by Emily Meyer in Lead Generation | 1 Comment

What’s Up With These Ad Exchanges?

April 30, 2007

Double Click announced a bid-driven ad marketplace a few weeks ago. Today, Yahoo said it was buying the rest of Right Media. As we all know, Google in March revealed its commitment to an auction approach to Cost Per Action. Big players clearly see some value in bringing buyers and sellers together for online display ads. Is this the future?

I’d say it is at least part of the future for CPL and CPA. A successful exchange requires transparency and measurement standards. In the equities markets, the former means quarterly reports and10K’s, and the latter means agreement to evaluate stocks on earnings or revenue.

But in the world of performance advertising, there’s a real risk of “apples and oranges”. How can an exchange equate the value of a sale versus a newsletter sign-up versus a webinar attendee? It will be fascinating to see how these exchanges approach the multitude of possible actions. In the meantime, there’s real value in standardizing programs for niche advertiser needs. I’d appreciate any thoughts on how the evolution to exchanges might happen.

Posted by Gary Kreissman in Lead Generation | 0 Comments

Google’s Auction

April 27, 2007

Much was made of Google’s recent announcement that they’d be introducing an auction-based cost-per-action business model (in fact – I made much of it myself over at MediaPost’s Performance Insider (reg req’d). Most of the coverage I’ve read tends to be centered on how Google is yet again bringing new innovations to the marketplace. If only that were true. Cost-per-action is not new.

Indeed, it is a proven part of the advertising arsenal, getting its own line in more and more marketers’ budgets. So if cost-per-action is not new, is there anything notable in Google’s announcement? Yes and no.

While Google may not being breaking any new ground, they are speeding cost-per-action to the forefront in the online advertising space. For that we should all be grateful. However, I think the most interesting part of Google’s plan is also the least clear – how the heck will the auction work?

An auction for keywords is simple to follow. A keyword is a commodity, after all, and commodities are easy to price and bid for.

An “action” is something else entirely. It’s just hard to see how it all will work.

Let’s assume there are two companies, A and B, and both are trying to fill up a seminar. Company A uses seminars to sell $5,000 training courses, while Company B uses seminars to get leads for mortgage origination, for which it receives $200 per mortgage. These companies would no doubt value seminars differently. How are they to be equals in a bidding process?

And let’s assume the action is something more in line with the common perception of cost-per-action – a sale of a product or service. How will Google know what was sold? The honor system? Will it require that they somehow get integrated into a company’s back-office financial software?

And what about fraud? For an enterprising – if unethical – individual, making a little extra on the side will be pretty easy

Let’s assume Jimmy the college student is excited because Spring Break is about to arrive, and he has a big blow-out to Mexico planned with 10 fraternity brothers. Jimmy has built a pretty successful blog about college sports and his school’s Greek community.

Google introduces Jimmy to its cost-per-action program, and, strapped for cash before the big Spring Break trip, he has an ethical lapse. He sets up his blog to begin posting a student loan ad that brings with it a $50 action for every sign-up to attend a seminar. Seeing some easy money, Jimmy encourages his fraternity brothers to respond to the ad, and before you know it, they’ve “raised” enough money to cover their beer tab, and the student loan company gets nothing but a bill.

A larger fraud would likely get the attention of Google’s click fraud police, but something like this is likely too small to be noticed, and very likely too small to be addressed.

In the end – a big thank you to Google for bringing the next generation of performance advertising to the forefront. But please Google – make it more clear how the whole thing works, and how you’ll prevent click fraud.

I should note that I have nothing against Google – so if a Googler reads this and finds my wonderings unnecessary, please reply.

Posted by Gary Kreissman in Lead Generation | 0 Comments

IMUS, Advertisers, & Choice

April 16, 2007

What does the firing of Don Imus for inappropriate remarks have to do with performance advertising? Look at it this way: Cost per Lead and other performance programs are about choice or opt-in. Traditional media are not.

In the Imus debacle, the sages of MSNBC and CBS made choices for consumers – without really consulting them. A few advertisers bail out. A few hypocritical leaders express outrage. And the corporate decision-makers capitulate. In the Imus mess, a legacy of good works – including skewering the hypocrites – is tarnished.

This is not democracy. Consumers (listeners and viewers) had no vote. Decisions were imposed upon them by advertisers and broadcasters. Perhaps the good news is that this is probably the end of an era. As online media and performance advertising grow, advertisers will need to listen to the voice of the consumer to build loyalty and business and stop running for cover. People can opt-in or out for offensive speech or political clarity – and they’ll appreciate advertisers that don’t make decisions for them.

Posted by Gary Kreissman in Lead Generation | 1 Comment

Are Agencies Leading the CPL Charge?

April 5, 2007

Google’s CPA (Cost Per Action) announcement has sent some shock waves beyond the competition. Many agencies – interactive, general, search or direct – have been muttering “What do we do when our clients ask us about THIS?”

I grew up in the agency business – as a mere lad, I was initiated into the joys of developing newspaper coupons and competitive analyses for Maxwell House Instant Coffee. One of the highlights was working with the great Margaret Hamilton who had morphed from Wicked Witch to country store proprietress, Cora the coffee lady. But I digress…

I did learn one of the great secrets of agencies back then: too many established agencies become conservative, reactive organizations. The maverick agencies that seem to come out of nowhere are not just the hot creative shops. Often, these are the agencies that get ahead of the curve on new executional or media ideas and show their clients how to leverage these ideas to accelerate growth.

Of course, no one would consider lead generation a new idea. But we’re beginning to see savvy agencies adopt the online version of qualified leads as the solution to venerable problem of identifying and selling new customers for niche products cost-effectively.

It makes sense for agencies to learn how to use CPL techniques – not only to add billings but to preserve them. Many agencies saw a budget drain when performance advertising emerged in the form of Cost per Click. Considering how CPL often delivers higher ROI, this budget drain might well grow. CPL and qualified lead development in particular is deceptively simple. Getting in the game is easy – making money isn’t. Solution: Agencies need to tap the firms that have been learning their way through this for years.

Oh, and in case any agency wants to talk to one of those firms - our number is listed!

Posted by Gary Kreissman in Lead Generation | 1 Comment

Google Discovers Cost per Action

March 27, 2007

This is the 3rd (or perhaps the 4th) time that Google has announced a foray into the CPA business. Is this a good thing – for the marketer? The firms already in CPA, CPL or CPQ? What about the consumer?

I believe all these constituencies should welcome Google. First, it is inevitable that marketers will see the ROI benefits – and shift budget – when they can decide to pay for sales, leads or other action. Google’s presence will accelerate the acceptance of this thinking. It will also set the pricing standards. And marketers will gain as click fraud withers.

For Precision Prospects and others that have been in CPL/CPQ, one of the biggest challenges has been finding the people in client companies and agencies who truly embrace the ROI-based thinking. When Google promotes an idea, everyone needs to pay attention – that will help those of us in niche areas expand our markets.

And for the consumer, Google and others will bring quid pro quo to life. The more consumers understand that they can trade their valuable information for marketers’ information, the better potential relationships become. Opting in can become a standard.

Bring it on, Google…

Resources:
Google’s Smart Moves
MediaPost
by Dave Morgan, Thursday, Mar 22, 2007

Posted by Gary Kreissman in Lead Generation | 0 Comments

Fantasy Prospecting

March 19, 2007

Ah Spring, when one’s fancy turns to thoughts of fantasy… baseball, that is. I’ve had a fantasy (aka Rotisserie) team for many years. We were even league champs one year.

If you’ve never played fantasy baseball, it works like this. You hold a draft to bid on a group of major league players who you think in combination will lead the league in 10 hitting and pitching categories. You’re competing against other teams to select the best mix of players. The standings depend on how your group of players does in those categories compared to the other teams.

This morning, I was working on my draft lists for the coming season and it occurred to me that the qualified lead development process is pretty much the same thing. You decide on characteristics of the players you want (screening) to create a winning team (more business). You bid against the other teams (market share). You monitor the standings (conversion).

The big difference of course is that “drafting” qualified prospects equals real business growth. Nice when fantasies become reality…

Posted by Gary Kreissman in Lead Generation | 0 Comments

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Lead Generation Blog

Leads From Under the Bed

Things To Know About Maximizing Lead Performance

Leads: Can’t Live With Them, Can’t Live Without Them

Handheld Mobile vs. Computer: How Do You Check Your Email?

What’s Up With These Ad Exchanges?

Google’s Auction

IMUS, Advertisers, & Choice

Are Agencies Leading the CPL Charge?

Google Discovers Cost per Action

Fantasy Prospecting