Is Cold Calling and Lead Generation a Numbers Game?

Lets look at the numbers and make some big improvements to lead generation

This lie is used to sell all sorts of mass-marketing lists, print materials and campaigns that are a waste of money. And because

Is lead generation a numbers game?

Is lead generation a numbers game?the people who tell you this ALSO tell you you can’t measure advertising, you have no way of knowing whether they’re right or wrong.

It is unfortunate that few marketers devote the time needed to analyze their best customers and accept low response rates as a consequence of poor campaign and list selection.

Let’s say we know that our direct marketing control is a simple, segmented postcard that generates a response rate of 6% when we follow up with a phone call to the decision maker.

Let’s say the cost is calculated at  a dollar for the postcard and list and additional dollar to have someone call them and we mail out 10,000 cards for a total cost of $20,000 for mailing, printing and phone call.

We are comfortable from the fact that this control will always produce an average response rate of 5% and will cost around $20,000

The next step is to divide this universe of 10,000 into segments

1. Infrequent Buyers

2. Frequent Buyers

3. Large buyers

And exclude segmented prospects that haven’t responded to previous mailings or prospects that haven’t been touched at least 9 times.

These prospects will only be contacted by the least expensive means like acquired email or self-serve website. By doing this we have reduced out marketing budget by at least 70% since we are now focused on the top 20% most profitable segments of our customer base.

We can justify raising the budget for the top 20% most profitable portion of our customer database. The 80% least profitable we segmented into less expensive lead generation programs.

With this new lead generation marketing plan, we can began making those changes. Discovering the huge inequalities between
various mailing lists we’d been renting; eliminating the bad ones and renting the good ones more often.

We identified pockets of responsive buyers and started investing more in selling to them and giving them improved
customer service. We cut the cost of mailing catalogs and sent more to the more productive people in their

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About Tim Little

Tim G. Little has a BS in Business Administration, and has worked in the magazine publication and circulation management for the past
20 years. As an Internet Publisher and Entrepreneur, he has developed expertise in the field of strategic planning, direct market
advertising and analysis, direct mail marketing and is a specialist in developing unique and lucrative opportunities using direct response
marketing methods for business.

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