This is a common question asked by most of the clients.
How much minimum amount do we have to invest to finally start getting the calls from our customers?
Believe me, no one can answer this question. Because the question is not valid. The value of cost-per-lead varies for different industries, specific products or services in those industries and it also depends on external factors such the demand and supply of the products and services, the competition, environmental factors, political situation, etc.
Facebook, Google or any other marketing channels are the mediums that we use for reaching our customers and show them our communication/offer through different ads.
Your ad will reach to the right audience and at the right time, but whether to take action or not depends on the customers only. You are not going to get the leads just because you paid a certain amount to a particular platform.
Every product or service has a certain purchase lifecycle. Every person who finally becomes your customer goes through that lifecycle.
Awareness, Interest, Desire and Action AKA AIDA is the most popular and most commonly used lifecycle. Many industries add few other steps in between depending on their specific needs.
You want to “Get a call from customer” means that the customer is at the Action stage of your AIDA lifecycle.
How much do you have to spend for getting a call from the customer?
It depends on the position of the customer in the purchase lifecycle.
If you are offering a completely new product that has never been introduced to the market before or you are running ads for a brand which is completely new to the market, it means all the people who are going to see your ads are in the Awareness stage of the purchase lifecycle.
In this situation, very few or none of them are going to call you. Your cost-per-action will always be too high with little or no results.
Due to the dynamic nature of the digital platforms, the attention span of online users has reduced significantly. You have maximum 4 seconds to grab the attention of your target audience.
If within 4 seconds your ad is not able to grab the attention of your target audience, you will lose all your money.
What is the right approach for generating the leads?
For that, we need to learn the basics of Marketing. Marketing techniques are broadly classified into two categories:
In Push Marketing, we assume that certain people with certain characteristics might be interested in our products, and based on that we target them with our ads. Facebook, LinkedIn, Quora and Google Display ads come under this category.
In Pull Marketing, we target those who are actively looking for our products or services. Google Search Ads come under this category.
For generating maximum leads, you need to prepare a plan which will cover the marketing techniques, platforms, technologies, ad funnel, budgets, schedule and everything else that is required for the marketing purpose.
Follow these steps to maximize the results:
- Prepare the marketing strategy: No campaign can give you measurable results if it is not properly planned. Do the market research, identify the audience segments, identify the needs of those segments, find on which platforms those audiences spend their time, for what purpose do they spend their time on those platforms and how can you target those audiences on those platforms. Once you get the answers to all these questions, you will know at what stage of the purchase lifecycle your audience is.
- Decide the marketing technique: If people are already in the Interest or Desire stage, it would be easy for you to generate the leads via Pull Marketing technique. But if people don’t know anything about the product/service or your brand and if the product/service is not their urgent need, Pull Marketing technique will not give you any results. Since people are not aware of the product/service, they are not going to search it on the internet or the frequency will be so low that it won’t be enough for you to generate a good number of leads.
- Decide the platform: Once you decide the marketing technique, you can now find on which platforms can you target those market segments. Don’t preassume anything. Do your research. Many people are comfortable with Facebook ads, so by default they choose Facebook as their marketing platform. What if your target audience does not spend much time on Facebook and they spend most of their time on Quora or Youtube or LinkedIn. You will lose a big marketing opportunity here. Choose your marketing platform wisely.
- Decide the Key Performance Indicators or KPIs: The results of each campaign need to be tracked based on the KPIs. If you are running the Awareness campaign, the “number of calls received” can not be the KPI of that campaign. The number of clicks, engagements on the posts, video views, video view time can be the KPIs that you need to consider. Tracking the right set of KPIs is necessary to properly measure the success of the campaigns.
- Decide the budget and schedule: Once you decide the platforms and KPIs, you can now decide the budget. This depends on the audience size and your previous experience with that particular platform.
- Prepare the ad copies: Ad personalization is the key to maximizing the results. This is the reason why we identify different audience segments in the first step. Prepare the ad copies based on the needs and wants of those audiences. People react more to those ads which are more relatable to them.
- Run the campaign, monitor it and analyse the results: Digital marketing campaigns have a dynamic nature. The success or failure of the campaigns depends on too many factors. Hence, it is important to continuously monitor the campaign and analyse the results of the campaign to optimize it.
- Start again with step 1: Based on the results of the campaign, you can either continue running the same campaign or you can overcome the mistakes done in the previous campaign and relaunch the campaign or start a completely new campaign to target customers who are at a different stage of the purchase cycle.
To summarise, there is no standard format that can help us in determining the minimum investment required to generate a lead. Only through the right strategy, execution and analysis, we can optimize the campaigns and make it profitable for the business.
Do you want to run profitable digital marketing campaigns for your business?
I have a vast experience in running complex digital marketing campaigns across multiple domains. If you are looking for someone who can handle everything related to your digital marketing needs, get in touch with me.