Lead generation is collecting a lead base with personal contacts. A lead is a prospect or a potential customer, who performed some actions like:
- left his email in pop-up;
- started a conversation with you in chat/email/social networks, etc;
- subscribed to an email campaign;
- signed up;
- started a trial;
- and other CTAs.
What leads are out there?
People have different level of interest in your product. We can break them up in three groups. The third group is the most loved once – those who came and ready to pay, your potential clients.
Depending on what group a person belongs to, you need to treat them differently to walk them to a purchase. How? Let’s see.
- Cold as ice lead
These are people who just stumbled on your website accidentally and left their email. They don’t have money to spend on your product or don’t understand (they think “have”) a necessity in your product for now.
Show what profit they will get out of the product, attract them with some special offer or a free trial to motivate them to try it. Work on involving this kind of leads into using your product.
- Warm as toast lead
These are leads who already know something about you and are willing to continue the cooperation, but just aren’t ready to buy right now. They chat with you, ask questions, show their interest in your product and its features.
Be as supportive as you can during this step, ply the fire with fresh fuel by telling them about the value and profit they will get by using your product.
- Hot as blue blazes lead
These are almost your customers. They are standing by your door with their money in their hand. Just go and take it. Just make sure that your payment process is smooth and easy. It is really depressing to lose customers at this stage of the funnel.
Qualifying your leads and separating them between these three groups is very important to take into consideration in order to get the highest conversions at every step of a funnel. Your leads have to see only information and offers which are needed on the life time period they are at. Lead generation will work more effectively if you divide your lead base into segments and work with each of them individually. In order to qualify leads you need to know as much as possible about them.
How to work with leads?
We need leads because they show us a light at the end of the tunnel. Unlike visitors who left your website and never come back, people you managed to capture can be moved down the funnel.
So can can you get cold leads in the first place? First of all, I don’t recommend to buy an email or a phone lead base. Those you will collect by yourself will be of a higher quality. It is better to work to attract traffic on your website.
- Google Adwords and Co.
Think about what your prospects search. Their key requests may help you with lead generation. Maybe look for some help from SEO specialists to lift your website up in search results, because people don’t usually go further than the first two pages. You can go for a paid ad and make a Google Adwords campaign to let more people find out about you.
- Social networks
Launch targeting commercial on Facebook to attract leads from that field. If you know that your target audience attend social networks – pay more attention to your public account, make it interesting and useful. It will definitely increase brand awareness and make your clients more loyal.
- Guest posting
Do you know companies with similar target audience? Talk with them to make guest posts in their blog or public page. This is a good way to get new leads, because their clients normally trust company’s recommendations and will more likely to look at your website.
- Referral programs
Do you already have clients who love you? Let them spread this feeling around the world: ask them to recommend you to their partners, friends and family. And offer some bonuses in return.
- Auto messages for lead capturing
Bringing traffic to a website is a hard work, but it is only half the battle. You need to convert them into leads in other words make them leave their personal data. Here you can use some platforms to automate your communications with visitors, and create a message chain depending on your visitors’ behavior.
For example, you can use triggered pop-ups. They help to collect leads, collect feedback, activate into features and help to get familiar with your product. You can put pop-ups into any scenario and increase CTA conversion.
I’m biased, but you can easily create a pop-up like that with Dashly, without having to fiddle with JS and HTML.
How to warm leads up?
Content is important when you want to whet prospects’ appetite and really good to show yourself as an expert in a field. There are several ways to warm them up.
- Email campaigns
Remind them about yourself with nice and funny email campaigns. Send your articles, onboard them into your product, share joy about a new feature and so on.
Think about those prospects who don’t want/have time/can’t read. Let them listen to your content while driving, running or falling asleep – create a podcast or make an audio version of your book.
This option is for those prospects who love to get information visually. Show how to work with your product, answer questions, help users and let them see you on webinars.
- Live chat
Catch all visitors’ questions instantly. You can then use this data to personalize communications.
How to estimate results and costs of lead generation?
Nobody wants to pay billions to attract leads and get nothing out of it. To be happy with the results, plan your campaigns and estimate the effectiveness of instruments used based on some key criteria.
|Metric||What does it mean|
|Conversion Rate, CR||How many website visitors perform a target action|
|Cost Per Acquisition, CPA||The amount of money you paid to attract one lead using ads|
|Average Order Value, AOV||Average amount of money you get from one user|
And here are two basic lead generation payment models:
- PPC (Pay Per Click)
Advertiser pays for click on advertisement and redirection to your website. Everything will be focused on growing traffic for your website, but you have a chance to pay for visitors who are not from your target audience. So the conversion to payment won’t be that high.
- PPA (Pay Per Action)
Here you will get leads of a higher quality. You will pay only for your needed target actions – sign up, app installation, subscription payment, etc.
The key metric of lead generation for SaaS is sign up conversion rate. To keep it on a high level make sure that your leads understand the value of your product – from your website, public pages in social networks, ads and so on.
Another important metric is acquisition cost. Your main goal here is to make it as less as possible with a good results, meaning leads of high quality. That should be enough to get you started. Good luck with your lead generation efforts!