Why Lead Generation Is Crucial In a Recession
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During a recession, the first thing businesses look at is cost-cutting in all departments. It is a good idea to save money for the company and protect its future.
Should we cut the marketing budget also?
Experts suggest that it is a bad idea to stop marketing during a recession and doing so may leave your business in a less competitive position when the economy starts to recover.
In the 2008 recession, Starbucks could’ve been a spectacular brand fail; however, its smart marketing strategy at a crucial time meant Starbucks came out more dominant than ever.
If you are a small B2B company and don’t have the budget for SEM (Search Engine Marketing), but still want to market your product or service effectively.
Then you should consider email marketing as an alternative to SEM; email Marketing is a highly cost-effective lead generation program.
SEM vs Email Marketing
|
Factors |
SEM |
Email Marketing |
|
Budget |
High |
Low |
|
ROI for every $1 |
Average $2.72 |
up to $38 |
If you follow industry best practices, Cold email works exceptionally well for any small B2B companies and in return offering a high ROI.
How do you ensure if email marketing works for your business?
These are KPIs for lead generation through cold emails.
|
KPI |
Criteria for Success |
|
Accuracy of Target Accounts |
Greater than 95% |
|
Accuracy of Target Contacts |
Greater than 95% |
|
Bounce rate |
Less than 3% |
|
Open rate |
Greater than 50% |
If you can achieve these metrics, your campaigns can achieve excellent results. If you don’t achieve these, your cold email process should be audited by an expert who can then improve the Performance and get results for you.
Let’s see these KPIs at a high level.
Target accounts and contacts:
Account-Based Marketing An account-based marketing strategy is essential in your email marketing, and it is entirely dependent on how effectively you choose your target accounts and decision-makers. So Account and decision-maker selection are critical steps in your strategy, and it hinges solely on customer data analysis.
How do you build accounts and email addresses of decision-makers?
You can build accurate marketing data through an in-house team or vendors like Jordan Marketing. There are directories such as ZoomInfo, Adapt for data; however, the problem with these types of directories it is challenging to achieve the doubtful that the KPI’s required. So, the best practice is to go with an in-house team or a vendor.
Hard Bounce Rate :
A hard bounce occurs when you send a mail to an incorrect address or if the client’s firewall blocks your email. To have a successful campaign, the bounce rate, should always be less. You can make this happen by removing invalid emails from your list, and you should write messages in a way that bypass any firewall.
Open rate:
Open rate is how many people opened your email against how many emails you sent. You can make sure your ideal open rate is achieved by taking care of
- Your domain settings
- Sender Score or Reputation
- Staying away from IP Blacklists
- Bypass Spam filters.
An accurate list, with ideal bounce and open rates, can yield you, meeting or trial request, price or product enquiries. In short, you can get at least 10 marketing qualified leads from every 100 accounts targeted. Again, it is essential to note that an accurate list, an ideal bounce and open rates are very critical to the success of cold emails.
So, we have learnt that with Ideal KPI’s, we can grow our business with little spending on email marketing.
