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Casual Articles - Calculate the Cost of Chasing a Lead - Reduce it by Giving
Did you know that there are only two types of employees in ANY company? That's right, ONLY TWO!Do you know which category YOU'RE IN?Companies are in business to make money. Therefore, you need to think, "How does hiring me help them to make money?"For all private sector companies, there are two, and only two, kinds of employees:1. Those employees that make a company money.2. Those employees that save a company money (or save time and hence, save money) so they can invest to make more money elsewhere.You should always know which type of employee YOU are.Companies only spend money on solutions to problems. They don't hire people t
Now let us consider another angle of calculating the cost of chasing a lead. Suppose we need to qualify a lead by paying a customer a visit. This will incur transport, labor, and car parking cost. It is reasonable to assume that it will cost $50 per trip. Add the cost of the campaign, which includes brochures, marketing materials, samples and the cost of the name card. Assume these materials cost another $30. In total, the cost of qualifying this lead is $80.
If the customer is not sure if he or she needs this product or service, this trip can be totally be wasted. Once you walk away from the customer, your marketing materials may end up in the trash can. Your call card may end up buried under piles of name cards. But the situation can be salvaged when you leave a gift behind. Especially if it is a well chosen and practical
Industrial/clinical psychology and applied psychiatry have made tremendous strides in understanding human behavior. New discoveries and applications toward understanding human behavior are being announced with increasing frequency in these inexact sciences. Still, it is possible to become reasonably proficient in the art of motivating others. While this skill is indeed complex, the average supervisor, through a comprehensive understanding of motivational elements (the dynamics of motivation, motivators, and motivational techniques), can become an effective leader of others in the workplace. With patience and applied practice, this skill can be obtained within a relatively shor
Before we can calculate the cost, we need to know what a qualified lead is. A qualified lead will have to satisfy four different criteria.
a) The person must need your product or service. There absolutely has to be a use for the item.
b) The person has to be able to pay for the item.
c) The person is a decision maker. Or at least can exert a strong influence to make a purchase.
d) The person knows when to make the purchase
Anyone who satisfies any of these areas can be a potential customer. And chasing this customer is called lead development. So how much must you spend to generate a qualified lead from among the people you target? Some examples of expenses incurred may be in the form of advertisements, labor, postage, or phone bills. Whatever method of customer interaction you use, they all cost money. If a meeting is required before a lead can be qualified, regard that too as a cost. They can be in the form of transport cost, car parking fees, brochure and calling cards.
Not all inquiries can be qualified. The people that make these inquiries simply cannot be reached. They could be on vacation, ignoring you, too busy, not serious, or just didn't meet the four criteria listed earlier. Assume, about 15% of all inquiries cannot be qualified. That leaves about 75% of the people you can reach. Of this 75% of the people you get in contact, let us assume that the average qualification rate would be about 20%. So we can safely say that 20% of those you interact will become qualified leads.
Example on how your calculated the cost of a qualified leads
Number of inquiries: 100
Number that qualify: 75
Cost of qualifying, per inquiry: $20
Number who turns out to be qualified leads (20%): 15
Total cost of qualifying ($20 X 75): $1,500
Campaign cost of $10,000 + qualifying cost = $11,500
Total cost of $11,500 divided by 15 qualified leads = $766.66
In short, you must invest $766.66 to attract each customer who needs your product or service. This amount varies from industry to industry, but its more a less a very significant amount and it is to your best interest to improve the percentage of qualified leads.
One great idea to improve your percentage of qualified leads is to offer a gift to the people that made an inquiry. Ensure you choose the gift that will enable people to remember you and has your contact printed on it. The gifts need not necessary be expensive as long as they can improve chances of qualified leads.
Assuming you budget $2.00 a lead, and decide to give promotional pens with your logo and contact printed on it. The calculation of cost of qualified leads will now look like this:
Number of inquiries: 100
Number that qualify: 75
Cost of qualifying, per inquiry: $20 + $2 (cost of pen) = $22
Number who turn out to be qualified leads (24%): 18 (Assume gifts improve your chances by 4%)
Total cost of qualifying ($22 X 75): $1,650
Campaign cost of $10,000 + qualifying cost = $11,650
Total cost of $11,650 divided by 18 qualified leads = $647.20
Wait a minute. Cost for 15 qualified leads without gifts was $766.66. Cost for 18 qualified leads with gifts is now $647.20 This is a $119.46 savings with extra 3 more qualified leads!
Now let us consider another angle of calculating the cost of chasing a lead. Suppose we need to qualify a lead by paying a customer a visit. This will incur transport, labor, and car parking cost. It is reasonable to assume that it will cost $50 per trip. Add the cost of the campaign, which includes brochures, marketing materials, samples and the cost of the name card. Assume these materials cost another $30. In total, the cost of qualifying this lead is $80.
If the customer is not sure if he or she needs this product or service, this trip can be totally be wasted. Once you walk away from the customer, your marketing materials may end up in the trash can. Your call card may end up buried under piles of name cards. But the situation can be salvaged when you leave a gift behind. Especially if it is a well chosen and practical
Tutoring is an amazing, easy to start and low-cost business that works well for almost anyone. It is especially great for stay-at-home moms, college students, teachers and even home school parents who want to earn income on the side.According to the National Tutoring Association, the number of individuals in the nation offering tutoring as a business has increased from 250,000 five years ago to more than 1 million today!If you have every thought of starting your own business and you have patience and a desire to help others, tutoring may be just the right fit for you!You can choose where you want to work….in your home, at your local library or at your st
Not all inquiries can be qualified. The people that make these inquiries simply cannot be reached. They could be on vacation, ignoring you, too busy, not serious, or just didn't meet the four criteria listed earlier. Assume, about 15% of all inquiries cannot be qualified. That leaves about 75% of the people you can reach. Of this 75% of the people you get in contact, let us assume that the average qualification rate would be about 20%. So we can safely say that 20% of those you interact will become qualified leads.
Example on how your calculated the cost of a qualified leads
Number of inquiries: 100
Number that qualify: 75
Cost of qualifying, per inquiry: $20
Number who turns out to be qualified leads (20%): 15
Total cost of qualifying ($20 X 75): $1,500
Campaign cost of $10,000 + qualifying cost = $11,500
Total cost of $11,500 divided by 15 qualified leads = $766.66
In short, you must invest $766.66 to attract each customer who needs your product or service. This amount varies from industry to industry, but its more a less a very significant amount and it is to your best interest to improve the percentage of qualified leads.
One great idea to improve your percentage of qualified leads is to offer a gift to the people that made an inquiry. Ensure you choose the gift that will enable people to remember you and has your contact printed on it. The gifts need not necessary be expensive as long as they can improve chances of qualified leads.
Assuming you budget $2.00 a lead, and decide to give promotional pens with your logo and contact printed on it. The calculation of cost of qualified leads will now look like this:
Number of inquiries: 100
Number that qualify: 75
Cost of qualifying, per inquiry: $20 + $2 (cost of pen) = $22
Number who turn out to be qualified leads (24%): 18 (Assume gifts improve your chances by 4%)
Total cost of qualifying ($22 X 75): $1,650
Campaign cost of $10,000 + qualifying cost = $11,650
Total cost of $11,650 divided by 18 qualified leads = $647.20
Wait a minute. Cost for 15 qualified leads without gifts was $766.66. Cost for 18 qualified leads with gifts is now $647.20 This is a $119.46 savings with extra 3 more qualified leads!
Now let us consider another angle of calculating the cost of chasing a lead. Suppose we need to qualify a lead by paying a customer a visit. This will incur transport, labor, and car parking cost. It is reasonable to assume that it will cost $50 per trip. Add the cost of the campaign, which includes brochures, marketing materials, samples and the cost of the name card. Assume these materials cost another $30. In total, the cost of qualifying this lead is $80.
If the customer is not sure if he or she needs this product or service, this trip can be totally be wasted. Once you walk away from the customer, your marketing materials may end up in the trash can. Your call card may end up buried under piles of name cards. But the situation can be salvaged when you leave a gift behind. Especially if it is a well chosen and practical
As a youngster I loved reading spy / adventure novels. They were always exciting and adventuresome. In most of them there was a “secret code,” used to communicate without fear of “the other side” being able to decipher communications and understand what was transpiring.I have observed that, in many businesses, a “Code of Conduct” is also a “secret code.” When I hear a businessperson say, “They should know that’s not the way we do things here” I ask whether they have a written policy regarding that issue. I might as well ask if they have a process for creating gold from water so I guess that the way they want their company to perform is a secret. Few small and mid-s
Example on how your calculated the cost of a qualified leads
Number of inquiries: 100
Number that qualify: 75
Cost of qualifying, per inquiry: $20
Number who turns out to be qualified leads (20%): 15
Total cost of qualifying ($20 X 75): $1,500
Campaign cost of $10,000 + qualifying cost = $11,500
Total cost of $11,500 divided by 15 qualified leads = $766.66
In short, you must invest $766.66 to attract each customer who needs your product or service. This amount varies from industry to industry, but its more a less a very significant amount and it is to your best interest to improve the percentage of qualified leads.
One great idea to improve your percentage of qualified leads is to offer a gift to the people that made an inquiry. Ensure you choose the gift that will enable people to remember you and has your contact printed on it. The gifts need not necessary be expensive as long as they can improve chances of qualified leads.
Assuming you budget $2.00 a lead, and decide to give promotional pens with your logo and contact printed on it. The calculation of cost of qualified leads will now look like this:
Number of inquiries: 100
Number that qualify: 75
Cost of qualifying, per inquiry: $20 + $2 (cost of pen) = $22
Number who turn out to be qualified leads (24%): 18 (Assume gifts improve your chances by 4%)
Total cost of qualifying ($22 X 75): $1,650
Campaign cost of $10,000 + qualifying cost = $11,650
Total cost of $11,650 divided by 18 qualified leads = $647.20
Wait a minute. Cost for 15 qualified leads without gifts was $766.66. Cost for 18 qualified leads with gifts is now $647.20 This is a $119.46 savings with extra 3 more qualified leads!
Now let us consider another angle of calculating the cost of chasing a lead. Suppose we need to qualify a lead by paying a customer a visit. This will incur transport, labor, and car parking cost. It is reasonable to assume that it will cost $50 per trip. Add the cost of the campaign, which includes brochures, marketing materials, samples and the cost of the name card. Assume these materials cost another $30. In total, the cost of qualifying this lead is $80.
If the customer is not sure if he or she needs this product or service, this trip can be totally be wasted. Once you walk away from the customer, your marketing materials may end up in the trash can. Your call card may end up buried under piles of name cards. But the situation can be salvaged when you leave a gift behind. Especially if it is a well chosen and practical
Companies pursuing an increased presence in China have had a wide of results. Small and mid-size USA companies have had tremendous success in China creating great value for their customers, employees and shareholders. Other USA firms have struggled or failed to get results in China.Small and mid-size USA firms are expanding their business with China to be close to their customers in the China, and to take advantage of favorable cost and financial incentives for doing business in China. The following key success factors must be managed to have successful business venture in China.Realistic Business Expectations – Avoid Frustrating Mistakes! USA fast pace
Assuming you budget $2.00 a lead, and decide to give promotional pens with your logo and contact printed on it. The calculation of cost of qualified leads will now look like this:
Number of inquiries: 100
Number that qualify: 75
Cost of qualifying, per inquiry: $20 + $2 (cost of pen) = $22
Number who turn out to be qualified leads (24%): 18 (Assume gifts improve your chances by 4%)
Total cost of qualifying ($22 X 75): $1,650
Campaign cost of $10,000 + qualifying cost = $11,650
Total cost of $11,650 divided by 18 qualified leads = $647.20
Wait a minute. Cost for 15 qualified leads without gifts was $766.66. Cost for 18 qualified leads with gifts is now $647.20 This is a $119.46 savings with extra 3 more qualified leads!
Now let us consider another angle of calculating the cost of chasing a lead. Suppose we need to qualify a lead by paying a customer a visit. This will incur transport, labor, and car parking cost. It is reasonable to assume that it will cost $50 per trip. Add the cost of the campaign, which includes brochures, marketing materials, samples and the cost of the name card. Assume these materials cost another $30. In total, the cost of qualifying this lead is $80.
If the customer is not sure if he or she needs this product or service, this trip can be totally be wasted. Once you walk away from the customer, your marketing materials may end up in the trash can. Your call card may end up buried under piles of name cards. But the situation can be salvaged when you leave a gift behind. Especially if it is a well chosen and practical
What’s the most important piece of paper in your job search? If you said it’s your resume or your cover letter, you’d be wrong. It’s your job application.Over 90% of companies run some type of background check on job applicants today. To get the detailed information that is required to run a thorough check, most companies require applicants to fill out a specially-designed application form.Over 80% of companies say that discrepancies on a job application can take a candidate out of the running, yet half of the background checks run in 2005 found inaccuracies in the information provided by applicants.As you can see, how you fill out that job application
Now let us consider another angle of calculating the cost of chasing a lead. Suppose we need to qualify a lead by paying a customer a visit. This will incur transport, labor, and car parking cost. It is reasonable to assume that it will cost $50 per trip. Add the cost of the campaign, which includes brochures, marketing materials, samples and the cost of the name card. Assume these materials cost another $30. In total, the cost of qualifying this lead is $80.
If the customer is not sure if he or she needs this product or service, this trip can be totally be wasted. Once you walk away from the customer, your marketing materials may end up in the trash can. Your call card may end up buried under piles of name cards. But the situation can be salvaged when you leave a gift behind. Especially if it is a well chosen and practical gift, it almost never ends up in the trash can nor buried under piles of rubbish. It stays in front of the customer’s desk.
Immediately you chances of this customer turning into a qualified lead somewhere in the future increases! Assuming you choose the same $2.00 pen as a gift. With an extra 2.5% percent of the total cost, you have increased the odds by many times.
There are many angles of which you can analyze the cost of chasing a lead. But when you factor giving as part of your strategy, most of the time, you can drive down the cost of chasing a lead. In a recent American Express Survey conducted by OPEN, budgets for client and customer gifts rose 15% in 2005. This clearly demonstrates that businesses are realizing the value of gifts and are actively making giving as a priority in their marketing strategy.
This is the amazing value of gifts that will help you improve your lead qualification, but your lead generation as well. Practice giving today, and expect it to reduce cost and increase sales. It may just put you in a position never achieved before.
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