- Written by Tim Knowles. Google+
- Published: 01 October 2013
The answer is a resounding YES!.
This is how $1,120 of faxes generated more leads than $10,000 Worth of SEO!
Our clients come in all shapes and sizes but this month we wanted to spotlight one that already take a fairly sophisticated and scientific approach to their marketing. Newsletter Marketing Systems (NMS) is a company that helps businesses retain clients and generate additional profit from their existing customers. After trying many alternatives, FaxMonkey’s Faxing service has now become a major part of their business process.
Being marketing professionals themselves they had already done a lot of planning and research before approaching us. They had calculated that their whole business model would only be viable if they could generate sufficient leads, at a cost per lead below $50.
“With direct mail we were probably spending a couple of hundred dollars per lead which was not sustainable at all. We repeatedly did the math and analyzed every metric but it was still costing us way too much to generate leads” said Zac, one of the partners at Newsletter Marketing Systems.
After analyzing their results from Pay Per Click, SEO, Direct mail, plus some one-to-one networking, they found that the cost of acquisition of a lead was still too high. After spending tens of thousands on marketing with unsatisfactory results, (both online and off line) they started to look around at different media. Fax broadcast was one of the ones that came up and they decided to give it a try.
“When we found out what you guys charge for fax broadcasting per thousand, we were pleasantly surprised” In the initial discussions we tried to predict how much they could expect from broadcast faxing their offer to various business sectors. Our predicted response rate of 1 in 1000 proved to be way underestimated!
NMS have now committed to faxing every month to keep a steady flow of new enquiries coming in to their sales dept. (And committing to a monthly campaign also attracted a discount too!)
Apart from the cost, and the quantity of leads, they also found interestingly enough that the quality of leads was better than the ones they’d generated online. (ie they were more easily converted to a sale)
Cost per lead fluctuates based on such factors as area, industry sector, timing of send etc. Now it’s down to the NMS staff to convert those enquiries to sales but given that they are selling a premium product / service their return on investment is proving more than satisfactory. They told us recently that they are now generating their best results to date!
Based on this, my advice to clients is:
Do the math and really understand what you can afford to spend on a lead. You’re in business so you’ll already know that it’s all about where to invest your dollar. Try new things until you get one that works and then do more of it.
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