Do you think you’re spending too much to acquire a new customer? If so, you probably are.
You may be under the illusion that buying leads in is going to be the best solution when it comes to increasing your conversion rate, quickly and with a lot less effort. However, this isn’t entirely true. In fact, it’s a common misconception amongst people that want to generate more leads.
We have the proof that buying leads in, in comparison to generating leads yourself is inefficient and is wasting your marketing your budget.
Here’s a real-life example
You can buy leads in from a lead generation company for a fixed price or you can generate your own leads with expert help and guidance. We’ve found out that buying leads may seem like the best option however, it’s not the most beneficial technique that’s going to get you the type of higher, quality lead that you want.
We have been working with a client now for over six months. Not the longest time, but not the shortest either – but long enough to see how much of a difference switching to generating leads for himself has made.
He started buying leads in for £35 each and that figure stayed the same for every enquiry, regardless if they spoke to them or not and they still had to pay that figure. They pre-buy about a 100 at that time. They converted around 7% of those enquiries to a sale, so it ended up costing them around £500 to acquire a new customer.
Although it was profitable for them, it had quite a few flaws. It wasn’t efficient, our client had to do a lot of work and they found it frustrating, as they didn’t get hold of most of the people. However, it was working for them.
When we started working with them, things changed. The process of generating more leads for our client was more efficient.
In the first month, we managed to reduce the cost per lead to £25 each. To see this result, we mainly utilised Facebook and Google advertising. The leads we were producing was of a much higher quality, as the enquiries came through their own website and brand, and people specifically wanted their help and wanted to speak our client. As a result, this increased the conversion rate from 7% to 12% and cut our clients cost per sale in half to £208 and pence.
Six months down the line and we have managed to get our clients cost per lead down to £8 with a conversion rate of 20%.
We learnt more about their business and what type of customer they needed. We got the cost per sale down to £40.