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Change the Direction of the Conversation
July 14, 2008

Last time, we talked about the difference between cost per lead and cost per piece. In the B2B marketplace, even with a $1.50 cost per piece for a direct mail campaign, the average cost per lead is a stunning $1,500. This is why it’s so important for marketers to start thinking differently about their marketing costs. When you use cost per lead rather than cost per piece, the cost equation starts looking very different.

Just this morning, I talked to a marketing company that is using personalized three-dimensional kits to drop clients’ cost per lead from $1,500 to $100. Cost per kit is $100, but in this case, the client sent 10 kits, and based on careful qualification of those leads and smart use of personalization, its sales force was able to make personal contact with 100% of those prospects.

That’s a cost per lead of $100.

The point here is to start thinking differently. If this marketing company were to approach you saying, “I can generate a campaign that will cost you $1.50 each.” Or if they were to approach you saying, “I can generate a campaign that will cost you $100 each,” which campaign would get your attention? The $1.50 per-piece campaign, of course. But what if they said, “I can get you sales leads at $1,500 each. Or I can get you sales leads at $100 each.” Now which would get your attention?

Chances are, you don’t have marketing companies banging down your door with promises of reducing your cost per lead. More likely, they are trying to sell you on the same old, same old cost per piece. The person who is in the position to change the direction of those conversations is you.

Next time a printing or marketing services company pitches you on cost per piece, ask about cost per lead instead. Ask about how responses are tracked. How results are measured. Ask about case studies they have produced and how you can use different metrics like return on investment to gauge results. The true value-added services partners will understand these questions and be in a position to answer them readily.

Using these questions, you will be in position to filter through the run-of-the-mill vendors and those that can make a substantial difference in the quality and effectiveness of your marketing very quickly.

Next time, more on that $100 per lead campaign.

Have questions? Comments? I'd love to hear from you. You can email me at htollvr@aol.com. For more information on primers for marketers and small businesses on digital, 1:1, and Web-to-print technologies, visit www.digitalprintingreports.com.

Posted by Heidi Tolliver Nigro on July 14, 2008 | Comments (0)