Market: Managing Your Lead Generation Community

Michael Faul
President

Traditionally, relationship marketing has focused on a simple premise which was the hallmark of American business—take good care of your customer, and the relationship will become more rewarding over time. Taking care of the customer provides all types of opportunities to up-sell and cross-sell additional products and services to that customer. And, because it’s easier and less expensive to sell to existing customers than to new customers, your margins improve. Simple.

If relationship marketing works so well for customers and clients, will it work for prospects? We need to remember we sell and market to people, not companies, agencies, governments, or associations. People with similar needs will respond similarly to the same offer or stimulus. So it stands to reason that techniques used to warm client relationships can also warm relationships with prospects, making them more receptive over time to your message. But, how do you warm up prospect relationships? Here is the first installment in a series of principles to help you manage your lead generating community.

Note: Learn more about the relationship stages of suspect, relationship, prospect, opportunity, and client by visiting us at http://www.xselleratesolutions.com/resources.php.

Focus your lead generation offers on getting people to form a relationship with your business. Routinely we see marketing pieces, sent to suspects, with offers to make substantial purchases or set appointments. Suspects, not knowing your business or even that you exist, have invested zero trust in a relationship with you. They have no reason to take time from their busy schedule to meet with you or discuss spending tens or hundreds of thousands of dollars with your firm. As a result, very few suspects will respond to these high-level offers.

Generally speaking, about one-half of one percent of recipients will respond to direct mail offers within large batches of 10,000 names or more. Those who do respond have an immediate and obvious need. Hoorah, sales success! If another two, five, or ten percent of the market has a need 12 or 18 months in the future, you may have to run large, ongoing campaigns to continue to engage them.

To improve response rates, scale back the initial offer to provide a high-value enticement such as a white paper or online tool. In exchange, you ask only for the smallest investment of trust—a name, company name, phone number, and e-mail address. By responding, the suspect forms a relationship with your business, and you have the ability to communicate with that individual over time at a much lower cost. Plus, those folks who will be buying down the road now have the opportunity to get to know you before making that decision.

Avoid asking suspects to do more than is appropriate. When you ask a suspect or other stranger to meet with you, you’re asking for a lot. Even if it you offer a free consult, the prospect will invest precious time from a busy schedule. If you request someone to exhibit a behavior not commensurate with the type of relationship you have, they will tend not to act. So, you will receive the best result by asking suspects to do only what is necessary for them to become a relationship, and relationships only that which advances them toward becoming a prospect.

Stay with us for future tips on managing your lead generation community!

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