What is the value of a direct mailer vs website leads?

I thought I would share what I have learned from tracking hundreds of leads. I often hear these complaints when it comes to leads and methods you use for advertising.

  • I’m not getting any leads
  • I’m not getting enough leads
  • My leads are costing to much
  • I don’t know what my leads are really costing me

If you aren’t getting any business then when you change something, it’s really easy to tell if what’s new is working. But what if you have a few things going on like home shows, direct mailers, and a website? Attribution to the source can be a guessing game. And often the stakes are high when a magazine ad costs $4k or that new website will cost $2k. And not just the initial cost but the opportunity costs as well because the pretty website that gets no leads is worthless.

What you can do on your own

Something that you can do is ask your customers how they heard about you. If you’re not you should be. I recently spoke with a dealer who ran the numbers on all his leads sources solely from this data for 2012. What he found is it costs him about 20% of every job just to generate the leads for everything he does offline. And his website efforts were about 15%. The key for him was to write it down and review it at the end of the year.

But what if you have employees or are forgetful, what then?

What you can do with tracking technology

Every lead can be tracked back to the source in a more perfect way using technology. I have learned this by implemented phone call tracking on door hangers, online advertising, and web lead forms to name a few. And in so doing have revealed the true value of a lead source. And I don’t have to wait until the end of the year. It’s done in near real time.

What medium do you use and where to do go to get the data you need?

Once you collect and place this information together on a per lead basis you can run some very insightful reports. Here are 2 examples of what you can see based on your participation. This data isn’t meant to be reflective of typical results but rather relative in formula only. Your results should very significantly.

Partial data participation

Medium Expenses # of Leads Cost Per Lead Conversion Rate %
SEO

$654

10

$65

5.13%

PPC

$770

9

$86

5.45%

Direct Mail

$809

10

$81

4.13%

Door Hangers

$400

5

$80

9.00%

Home Show / Brochure

$1,800

40

$45

14.00%

Full data participation

Medium Sales Expenses # of Sales # of Leads Cost Per Lead Cost Per Sale Conversion Rate %
SEO

$3,230

$654

3

10

$65

$218

5.13%

PPC

$2,326

$770

1

9

$86

$770

5.45%

Direct Mail

$4,050

$809

2

10

$81

$405

4.13%

Door Hangers

$1,800

$400

2

5

$80

$200

9.00%

Home Show / Brochure

$5,000

$1,800

10

40

$45

$180

14.00%

And

Medium Close Ratio Ave. Sale Cost as a % of Sale
SEO

30%

$1,077

20%

PPC

11%

$2,326

33%

Direct Mail

20%

$2,025

20%

Door Hangers

40%

$900

22%

Home Show / Brochure

25%

$500

36%

What I have learned from tracking hundreds of leads

It’s usually not that business owners aren’t doing the right things to bring in business. It’s that they aren’t tracking everything. And when it’s not tracked it can’t be improved. What this really does is cause owners to miss allocate their time and money.

5 duh moments I have had with leads

  1. Track everything
  2. Stop doing things that don’t work
  3. Spend more money on things that are working
  4. Spend a lot of time in finding the right team to do lead generation for you
  5. Then spend less time doing anything but working on perfecting your sales process

Facts & tips when dealing with leads

  • 61 percent of people go with the first company to contact them. “Lead Response Management Study
  • Making contact within the first 5 minutes of receiving a lead should double your current contact rate -LRMS
  • Have your web form SMS you in addition to email you
  • Have your forward calls emailed to you in addition to routed directly to you
  • Have your calls routed to a call center if you don’t pick up within 30 seconds

    I’m a digital marketer, lucky husband, and father. I have one goal, put bad marketers out of business. Contact me for marketing consulting.

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