For marketers, finding the balance between lead quality and lead quantity is one of the biggest challenges they face.
Ask yourself this: should you spend the majority of your marketing budget on larger markets with less chance of conversion? Or, should you focus smaller markets with high conversion rates?
Are 100 cheaply gained unqualified leads worth more than 10 much more costly qualified leads? Or is the opposite true?
For Brize, a growth hacking consulting company based in the Netherlands, the answer is to turn quantity into quality.
By focusing on one cheap and scalable market and using a few ingenious hacks (which we’ll explain below), they grew one of their client’s (MisterGreen, a Tesla leasing company) incoming leads by 800% in less than a year.
But this huge increase in leads were‚ admittedly‚ less qualified than they’d prefer.
Instead of backing off the market, they transformed MisterGreen’s sales funnel to optimize conversions. They used automation-driven methods to convert those not-so-qualified leads into paying customers.
All without hiring a building full of new salespeople to convert all the leads they were creating.
We talked to Jesse van Doren, founder and lead hacker at Brize, about how they did it.
Note: If you’re scaling lead generation like Brize did in this article, you can use our app, Leadfeeder, to show you what companies are visiting your website but not filling out a form or converting. Try it free in minutes.
Facebook: a cheap, scalable market
That cheap, large market?
Jesse explained that in Europe, fewer marketers are promoting on Facebook, which means it’s a cheap market with little competition.
Much cheaper, in fact, than other channels, according to Brize’s research. They calculated that leads from Facebook cost them up to 90% less than leads through Google AdWords.
Sounds great right?
After working with Brize, Facebook ads became the primary marketing channel by percentage of leads acquired for MisterGreen‚ generating thousands of new leads in a matter of months and amounting to over 60% of the company’s leads. It’s important to note, that after taking over the account, Brize raised the number of leads in all channels‚ not just Facebook.
Just one problem…
When people search “Model S lease” in Google, they’re much more likely to actually lease a Tesla than curious people clicking on a random ad they saw on Facebook.
In other words, Facebook leads were cheaper, but they converted at a much lower rate than AdWords leads.
Here, we arrive back at our initial question.
How should you balance quantity versus quality with sales leads? When is it acceptable to expand on leads of lower quality?
Even though each lead from AdWords is more expensive, AdWords leads are more likely to lead to a sale. Doesn’t that make them worth the extra cost?
Not if you can significantly improve the much, much cheaper lead. If you can keep the quantity high, while finding ways to continuously improve quality, you will have the best of both worlds — the holy grail of lead generation.
This is exactly what Brize achieved…
How Brize Improved Conversions for Leads That Were Cheaper to Acquire
Brize did two things to improve the conversion rate for leads from Facebook:
1. They optimized ads to target those most likely to actually convert
Who leases Teslas in Europe?
Lots of people. And especially small business owners.
On its own, the ad’s verbiage provided a strong incentive to click through: “If you drive a Tesla, you can save up to 10,000 euros within five years by saving on fuel costs.”
And who doesn’t want to save 10,000 euros? But Brize didn’t want just anybody to click through.
First, they filtered the ads to only display to those who list themselves as small business owners. But they quickly figured out that led to another problem.
Many freelancers list themselves as business owners on Facebook.
Brize discovered that freelancers who clicked on the ads and filled in the contact form were less likely to follow through and lease a Tesla than other types of business owners. There was no way to filter out freelancers, so Brize implemented a simple hack.
They added a question to the Facebook post: “Do you have a small business?”
Freelancers, even though they technically own a small business, were much less likely to click on this ad.
“One small sentence changed everything from the leads we were getting,” Jesse explained.
From here, they integrated their customer data from their CRM into Facebook. This lets them take advantage of Facebook’s lookalike audiences feature, ensuring their ads were being seen by the right people.
As Jesse explained, “You are optimizing your Facebook ads for people who are more likely to spend a lot of money.”
Brize was attracting MisterGreen’s ideal target customers to the lead capture on their landing page. But even with these improvements, they were still having challenges converting Facebook leads into sales.
“We noticed that it took the sales team 90 percent longer to close Facebook leads than Google AdWords leads,” Jesse said. “A lot of people don’t measure that kind of data. The thing is, it’s really important because man hours cost a lot of money.”
“We displayed the monthly fee that we charge for a Tesla Model S on the landing page,” Jesse said. “But even still, many people filled out the lead form without seeing the price.”
Note: Want to see what companies are hitting your site from Facebook ads but not converting? Our app, Leadfeeder,can help you do it. Try it free in minutes.
2. They reduced the need for salesperson interaction through automation
Jesse explained, “It’s about quality in the end. How can we close deals for as little money possible? It’s not just about the cost of ads, but your employees‚ time, etc. All those things are costs you have to consider.”
Before automating the sales funnel, it might have taken the team a few days to get back to someone who filled out a contact form.
By setting up automated emails, following up on leads was instantaneous and cut down on staff costs.
Brize helped MisterGreen set up a series of automated emails based on the lead capture form.
The sequence potential customers through the process of leasing a car through MisterGreen. If they’re not interested and don’t respond, the system sends them a follow-up email two weeks later.
The follow-up sequence for MisterGreen
“We discovered that emails convert really well. Maybe the Facebook leads weren’t converting directly. But, in the long term, they will convert if we send the right content to the right potential customer,” Jesse explained.
Of course, setting up an automated email was just the beginning.
When you increase inbound leads by 800%, new bottlenecks are bound to happen.
Brize helped MisterGreen set up a series of automated responses and actions that worked from a lead’s first visit to a landing page all the way to the lease offer page.
They now use over 30 marketing automations that they have turned into a fully scalable IT marketing platform.
“We now have the whole sales process online and can measure things from the ‘proposal request’ to the actual contract signing,” Jesse said.
3 Takeaways for Marketers
If you’re hoping to drive more leads and close more deals, here are some specific lessons from Brize’s story to try in your business:
1. Cheap, scalable channels can be worthwhile if you’re able to target your ideal customer
Facebook worked well for MisterGreen because of their location. In the U.S., Facebook has more competition, but it’s still one of the best places to get a large number of eyes on your ad. The testing process is what matters. Try several platforms and see what leads you can drive for what cost.
2. If you’re working to drive more leads, be prepared for them
Growth hacking is rarely a linear process. Usually, you try a variety of tactics until you find one that hits, sometimes big. As you work to increase leads, don’t neglect what will happen once you generate those leads.
3. Automation Can Make Any Lead Cheaper
Once you find a method that drives leads consistently, work to automate the process to close these leads as cheaply as possible, staff hours included.
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