Cut the Cost of New Customer Acquisition by 56% with A Lead Generation System
We spoke with a container company that was buying leads and had 4 website visitors per month about reducing the cost per lead without increasing what they were spending.
A container company receives an average 90 contacts per month from a lead company with an average close rate of 65%; that equates to 58 new customers each month.
The lead company charges $22 for each contact.
The estimated true cost per new customer is 90 x 22 = $1980 / 58 = $34.13 per new customer.
Pros and Cons of buying leads
- You can stop and start depending on your budget and schedule.
- If you need to turn on leads without building your own ad campaign, it is easier.
- Lead quality can be suspect because people are trying to find “deals”.
- Once you stop paying, the lead flow turns off.
Set Up Your Own Lead Generation System
Let’s first take a look at the real data of one of our container clients.
*Goals = both Contact Forms and Phone calls. Only Click-to-call phone calls because we have not tracked calls coming from someone typing in the phone number directly.
If the average “lead to customer” conversion rate is 70%, they are getting an estimated 132+ new customers each month. We also manage their Google Business Profile (Google map listing) that also produces prospect phone calls.
The average cost per new customer is $15.15 which is 56% less than paying for a lead through a lead generation company.
Lead Generation System for Container Companies
Success Formulas for Quality Leads
Our job is to drive traffic to the website and the website’s job is to convert that traffic into a lead.
The major benefit to implementing a lead generation system is a higher ‘lead to customer’ conversion ratio. A properly optimized website builds trust with visitors thus making your sales job easier.
Additional benefits are:
- Your business is not dependent on a third-party company
- You don’t have to compete with competitors for customers
- Your website will continuously convert traffic that you own
Success Formula One — CRO + SEO
Your website plays an important role in a solid lead generation system. By utilizing CRO strategies, it can be more than a brochure. CRO stands for conversion rate optimization and is the process of tweaking your website and content to generate greater conversions from the traffic already landing on it. In other words, convince them to ACT!
According to research by Wordstream, the average conversion rate for a website hovers around 3%. But our container company’s conversion rate averages 8.32%.
For CRO strategies to work, you need to have traffic visiting your site. SEO stands for search engine optimization and is the practice of growing a website’s traffic from organic search results. There are basically four parts to the practice of SEO.
Success Formula Two — CRO + (SEO + PPC)
Your lead generation system can have two options – with or without paid advertising. The container company stats shown do not contain advertising traffic.
PPC stands for Pay-per-click and allows marketers to pay only when their ad is clicked by an online user. This online advertising model enables marketers to display ads in the sponsored results section of the search engine’s results page.
To appear when the right keywords and audience criteria are met, advertisers bid on the perceived value of a click. The ad is displayed in the sponsored links on the results page and a small fee is charged when the ad is clicked. Hence, the term Pay-Per-Click.
Google provides estimates for the cost per click which assist advertisers in budgeting. In this example, the average cost per click for shipping containers is $3.01 and for storage containers is $2.91. This cost is based on several factors such as your location and the level of competition, but seasonality can also affect the price.
✔️ The power of this formula is dominating page one of Google. It all starts with advertising.
We not only focus on getting your site to rank organically on page one, but we also set up the website for the People Also Asked section. Our content team can create simple videos for ranking and work with your company on a video strategy.
You can continue buying leads that are also given to your competitors or you can start a lead generation system that you own for long-term growth.