Internet Marketing

Online lead generation is rapidly growing in popularity, with its use forecast to double over the next two years. So why is it so attractive and where should it fit in the modern marketing mix?

Marketing campaigns are most effective when they integrate different techniques to gather, qualify and convert customer data into potential new sales. That can mean combining offline, indirect methods – such as television advertisements – with online, direct tools, such as web banners and search engine optimisation. And we can now add to this mix the fastest growing form of web-based direct marketing - online lead generation.

With an increasing number of retailers turning to this new form of online marketing to harnesses targeted and timely customer information and rapidly convert it into new leads, its use is set to double over the next two years. So what is online lead generation, what factors are driving its adoption - and where should it fit in the modern marketing mix?

Businesses need direct marketing – every organisation has to be in contact with its customers, with a view to generating new sales. Direct marketing is targeted, easily measured and can often generate rapid results. Some forms of direct marketing such as postal and telephone campaigns have been around for many years but they do have their limitations – most notably the preference services that automatically opt consumers out of uninvited contact.

"In July 2007, online sales were 80 percent higher than the same month the previous year. This means that the web is an ideal place to gather marketing data and capture leads."

Simon Wajcenberg, CEO, Clash-MediaThe steady increase in broadband subscriptions means there are now more consumers on the internet than ever before and online retailers are succeeding in taking business off the high street. In July 2007, online sales were 80 percent higher than the same month the previous year. This means that the web is an ideal place to gather marketing data and capture leads.

Many retailers are harnessing the power of the internet within their B2C direct marketing campaigns. The internet has established itself as an effective marketing tool, and that is reflected by the fact that 71 percent of businesses have established multi-channel sales and marketing operations – using multiple forms of advertising and contact media. Of these multi-channel businesses, 74 percent gather online leads with the intent of converting them offline, according to E-consultancy.com.

Search engine optimisation is a popular internet marketing tool, with over 70 percent of organisations using natural search or paid search techniques. Affiliate marketing is also a key online tactic for retailers as it enables them to market themselves through complementary sites in order to generate new sales – referring clicks, leads or sales to the merchant (Amazon is a great example here).

But the newest and undoubtedly the fastest growing form of B2C direct marketing over the web is online lead generation.

A holistic approach

The online lead generation industry is expected to double in size between 2007 and 2009, and it is proving successful as it enables retailers to use the internet to contact consumers who express an interest in their product.

It also enables them to set up and launch campaigns that quickly capture and qualify leads, so retailers achieve higher conversion rates compared to most other direct marketing activities as the advertiser can specify exactly what leads they wish to receive – for example, women living within the M25 earning over £30,000 a year.

Online lead generation uses a lead and data network of thousands of website publishers to host a consistent campaign across the internet. Each publisher has a stakeholder interest in each individual campaign. They will generate the leads and then pass them back through the host’s central system for cleansing, verification and forwarding to the client.

Online lead generation uses a lead and data network of thousands of website publishers to host a consistent campaign across the internet.Instead of a database sitting at the back of a company’s own website, collecting the data submitted by visitors, online lead generation proactively and automatically captures consumer details, qualifies them and sends them through for sales agents to convert.

This approach also sends leads directly to a client’s CRM system or contact centre where agents are ready to follow up with the customer within minutes of information submission. The lead is therefore very hot when it is contacted, which enables retailers to increase their conversion rates.

It also offers a one-stop-shop for the gathering and management of large volumes of high quality B2C sales leads. The unparalleled speed of start-up and delivery means that online lead generation campaigns can be switched on or off very quickly in line with its success or a company’s marketing budgets.

Campaigns reach a far wider audience without adding extra management or quality processes for the end customer. And if each lead is put through an unincentivised opt-in process, then it is qualified for relevance and then automatic verification ensures the information meets pre-set data quality guidelines.

Nevertheless, for all these qualities, no one marketing tool will ever be 100 percent efficient on its own. The way to achieve the best results is to realise that many methods have their own individual benefits, and create an effective mix that forms a genuinely holistic marketing campaign.

Marketing campaigns become more effective the more they can integrate different techniques to gather, qualify and convert customer data. This means, for example, using offline, indirect methods – such as television advertisements – in combination with online, direct tools – such as online lead generation or search engine optimisation.

There are many different forms of direct marketing, and most will have merit for your campaign. The key to success is finding the right blend of activities.