Effective Lead Generation 

Effective Lead Generation Model- A Case Study

.“The aim of marketing is to know and understand the customer so well the product or service fits him and sells itself.”-Peter Drucker

Startup business entrepreneurs’ key resource is time. How they spend, their time will decide success of their startups. They spend maximum time in marketing. They should measure the return they get for the time spent by them. Effectiveness can be measured   by the number of customers acquired per hour of work.

Tim is an engineer and has worked as a  Chief  Customer Service Executive for more than a decade. He wanted to start a manufacturing unit. He came across news items of various burglaries and house breaking across the cities. Considering the current safety concerns, he set up an assembly unit  for security cameras...

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Effective Lead Generation- The Need

Tim felt marketing was not a major area of concern.

He could devote 4 hours / day to marketing. As installation was part of his offer, he hired a service technician. He also set up a website..

 Initially he was successful by direct sales through his network. However, the sales started  stagnating.

He had invested $11000 from his savings. With the sales hitting a plteau ,his cash reserves were dwindling fast. He urgently needed to try alternative approaches for led generation as his factory capacity would remain idle.

The Fishing Holes

He listed the following alternatives to market security cameras.

Three alternative lead generations

  1. Direct  Sales to Customers
  2. Dealers
  3. Online Sales

Tim listed his resources and estimated the returns for each approach so that he can plot   the Resources- Return matrix to discover his diamond.

•      Direct Sales -Customer)

•      Sales through-Dealers 

•      Online sales                

 Resources:

Time   24 hours / week for marketing

Money: $1000 budget.

Since his time is the critical resource, he evaluated all the alternatives to select one which will get him more customers per hour of work. The Cash resources can be stretched unlike time, spent on marketing. 

 Effective Lead Generation-2X2 Matrix -Resources and return for each alternative

Alternative 1

Resource: Time

Identifying individual customers either at exhibitions, network or from website will take considerable time. Hence most of the marketing time is spent in locating customers.

Return: Lead Generation

Based on a pilot he realized he could meet only 60 % success rate

Time requirement: 20/ 24 - 80%, which is a score of 8 out of ten for resources

Return: 60% success rate for identifying customers- hence the score is 6 out of 10

Alternative2

Resource: Time

The metro town has a strong dealer network as a cluster in 3 commercial locations.

As a first step, time is spent to finalize dealer terms and appointing dealers. Regular contact with dealers to procure orders is required. Two visits per week (4 hours/ visit) for follow up. Dealers can also place orders through web.

Total    Time resource for one week; 12.  ( 12/ 24- 0.5 )

Return:  Based on his discussion with dealers he arrived at figure of 80% success rate. Dealers will be interested  in pushing the product for profits.

Thus the score is 8 out of 10

Alternative 3

Resources: Time

Online Sales will requires less time and Tim’s estimate was 1.5 hours /day..

Hence a score of 3- (1.5/4)

Return:

Pilots revealed 20% success rates on online enquiries.

2X2 Matrix (Resource: Return) : (3,2 )

  Effective Lead Generation-Summary of Analysis

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Discover The Diamond

Discover Diamond by plotting in the resources score (X axis) and Return score (Y Axis) and discover the diamond. Alternative 2 is the diamond as Tim  gets higher return for the time invested in marketing effort. However the online can be an additional channel as Tim can attend to it while he is in the factory.