Lead generation can be challenging for startup companies. As you build your business and its operations, you need to employ efficient, scalable lead generation techniques to keep your sales funnel filled as your requirements and capacities increase. As a startup, you have to be smart about your lead generation strategies because you will likely have fewer resources to spend on marketing functions.
Generating Leads is a trial-and-error process for companies when they’re just starting out, and a premium needs to be placed on market visibility. Getting your name in front of people while filling your sales funnel can be a demanding process, especially when your business lacks the economies of scale that larger companies enjoy.
Effective Lead Generation Model- A
.“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...
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.
He listed the following alternatives to market security cameras.
Three alternative lead generations
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
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.
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
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
Online Sales will requires less time and Tim’s estimate was 1.5 hours /day..
Hence a score of 3- (1.5/4)
Pilots revealed 20% success rates on online enquiries.
2X2 Matrix (Resource: Return) : (3,2 )