Email Leads

Introduction

The term email leads refers to the act of generating sales leads through email marketing.  At a high level this encompasses acquiring email addresses of people who have some predisposition to buy a product or service and sending them enticing email to persuade them to make a purchase.

Basics of email marketing

 

Email marketing is a popular and growing tactic used by marketers because it provides an efficient method of sending broadcast and niche messages to potential customers in a way that allows advertisers to track their ROI (return on investment). 

Here are some notable advantages:

• Emails are cheap: No envelope, paper, or postage.
• Delivery time is short: Emails are sent in seconds versus days for snail mail.
• Large user base: Over half of all internet users check or send e-mail in a typical day[1].

The only notable disadvantage of email marketing is the possibility of being considered spam .  No responsible company wants to tarnish its brand by repeatedly sending unwanted emails to folks.  Luckily this problem can be avoided by providing an opt-out opportunity on all emails and only marketing to individuals who have requested information.

Basics of Lead Generation

Lead Generation is the act of creating prospective consumer interest and inquiry about a product or service.  When successfully executed a lead generating ad entices a qualified buyer to submit their contact information to a company so they can learn more about a product.  Lead generation is often used to fill a sales channel with prospects.

Lead generation is often used to market big ticket purchases that have a complex sales process.  This tactic allows a company to identify prospects that are interested in a product and qualified to make a purchase.  Lead generation is often the first step in educating a consumer and moving them further along the buying cycle so the deal can be closed.

What does an email lead campaign look like?

1. Plan campaign – Who do you want to target?  What messages do you want to send to them? What ROI must you achieve to justify spend? 
2. Create emails – a simple text email can be created by any decent copywriter or a designer can be employed to create a dynamic email that leverages multimedia to grab the attention of your prospects.  IMPORTANT: Make sure it is easy for your leads to contact you for further information or purchase.
3. Buy leads – There are many vendors in the marketplace that can provide qualified leads for just about any business.  Leads can vary greatly in quality.  For example marketing leads with little information beyond name and email address can be bought for less than a penny each.  High quality leads with lots of information can be generated by a custom ad that leverages behavioral marketing for more than $40 each.
4. Send emails to leads – Many software programs exist for the purpose of customizing email marketing.  This software can range in price from free to over $1000 depending on complexity.
5. Evaluate effectiveness – Most email marketing campaigns are judged by their ROI.  How often did the leads you purchased convert into paying customers and how much money did you make from those conversions? 

As with any new initiative there is an inherent learning curve to email lead generation.  Be prepared to make an investment in this capability and lose some money at first as you develop expertise.

Challenges to a successful campaign

 

Graphical Representation

The biggest challenge to a successful email lead generation campaign is dealing with spam.  About 90% of all emails sent today are spam[2] and sometimes the measures taken to discard spam messages before they land in a user's in box result in legitimate messages being thrown away.  Today about 45% of all legitimate emails do not make it to the intended in box.[3]

Commercial marketers must also make sure they do not violate the 2003 CAN-SPAM act .  This act authorizes a US$11,000 penalty per violation for spamming an individual.[4]  Some commercial e-mail marketers within the United States have reacted to this legislation by using a service or special software to ensure compliance.

The easiest way to ensure compliance with the act is to use a double-opt in sign-up for all emails and provide a one-click unsubscribe feature.  Double opt-in means a user has subscribed for an email by explicitly requesting it and confirming the email address. This is usually done by responding to a confirmation email sent to the email address in question.

Five tips for getting email leads

1. Remember many users won’t see images.  Gmail users won’t see any of the images in the emails they receive unless they approve images from the sender.  Many other email management systems are adopting this feature to prevent the spread of viruses and other malicious software.  If you are going to use images in your email use alt text and a design the makes your message persuasive even if images aren’t downloaded.
2. Keep the message focused.  You may put a lot of thought into your email, but the recipients probably won’t.  Ideal emails are concise and all elements persuade the reader to take one action.  I'm confident there are exceptions to this rule, but in my experience the response rate suffers if you ask the reader to split their attention instead of focusing on a single-minded call to action.
3. Offer free information.  This internet provides a lot of information, but most of it is not high quality.  If you can provide easy access to useful information prospects are more likely to read your emails and follow your call to action.
4. Send emails to yourself.  This is an easy way to help think about the user experience .  Look at the email the way your prospects will see it.  How does it look? Does it pop? Does it get lost? If you're scrolling and skimming as so many do, would it make you stop and read more? Do some features or graphics distract more than they add value?
5. Study the competition.  Before you invest time and money see what your competitors are doing. What email channels are they employing? Solo emails? In-line ads within newsletters? Do they have their own newsletters? How do they get new subscribers?

Conclusion

Email leads can be a very effective way to fill a sales channel.  Like any other marketing program there is a learning curve and to become successful with this tactic an investment in time and money must be made.   This is a cheap way to reach a lot of consumers, but one must take some simple steps to comply with legislation.

See Also