Companies are often looking at how they can bring in customers immediately with short-term lead generation campaigns. It is not always the best strategy. Sometimes you have to employ long term lead generation campaigns for better results, with particular customers.
Research has found that the number of interactions for customers to convert from newly introduced prospects to customers is increasing. 80% of prospects require 5 to 12 touch points to convert into a customer. However, this doesn’t mean you should only concentrate on long term channels. The research also shows that 20% of customers are still converting with four or fewer interactions. These can be highly valued customers as their customer acquisition costs can be lower than those that require extensive marketing campaigns.
Short Term Lead Generation Campaigns Becoming Long Term
The biggest factor in the success of short-term lead generation campaigns is that when you run them, you want to ensure that they also become long term lead generation campaigns. It does require significant investment over the longer period. It also ensures that you are not wasting investment with those prospects that you acquire during the short term campaigns, only to disappear because you haven’t marketed to them.
The Costs of Both
The major factor in both long-term and short-term lead generation campaigns are the costs associated with them. Email marketing is long held to be the most cost-effective marketing channel. It is relatively inexpensive to run a single email marketing campaign. However, you can expect the lead to become a customer between six and twelve months. Consequently, costs can mount up over time.
In contrast, Pay-Per-Click (PPC) and direct mail marketing can have very high costs. Once the campaign has finished, there are no more costs, and another campaign just leads to a different investment to consider.
Combining the Channels
One of the most important aspects of marketing is to think of it as one long sales funnel. Prospects can touch upon different channels at any time during the process.
Therefore, careful consideration needs to be taken on how you can combine different channels to create a short-term lead generation campaign while catching those that aren’t immediately impressed in a long term lead generation campaign.
Take, for instance, running a PPC campaign. You advertise your shoes on sale for one weekend, and 20% of those who click through to your site will make a purchase. Those are impressive returns. But 80% of visitors will do nothing and have only a 30% chance of returning to your site again.
Instead, you need to capture the lost 80% in a long term campaign, like email marketing. To do this, you could initiate an email signup popup as visitors leave your page, offering them discounts, or other incentives to get them to sign up. Then, you can market to them as a long-term lead.
It is beneficial to the return on investment for the short term campaign as you can attribute some of the costs of that marketing campaign against those that convert in the long term. Therefore, the customer acquisition costs are lower, giving your business greater profit margins.
This strategy will also help to stem leaks within your business’ sales funnel and keep customers interested in your brand.
It can be all strategized when you design your sales funnel, or by looking at your customer’s current purchasing paths.
Long term and short term lead generation is important in today’s modern business world. But, don’t think of them as separate campaigns. Instead, combine them into a single unified sales process where both can exist and support each other to generate better revenue for your business.
Speak to Mann & Co. today about what we can do to help improve and combine your long and short-term lead generation campaigns.