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Numerical Cognition: Lead Generation Systematics
Evaluating lead generation❓ Options:
- Identify marketing aspects❓ needing improvement and track the source of leads to determine the effectiveness of lead generation methods.
- Model after proven methods in similar markets.
- Define a plan, budget, message, target audience, and integration strategy, along with expected results to gauge success.
- Consistently use a marketing or research method for 3-6 months, tracking lead sources to understand its impact. Don’t dismiss a program immediately or fall in love with one producing instant results. Marketing elements should be traceable and comparable by sending different messages❓ through various channels and rotating them to verify consistency.
- Balance program costs with net results to understand the cost per lead. Tracking costs versus benefits over time provides information to judge a method’s advantages.
The Importance of Numbers:
- The number of leads generated is more important than conversion rates.
- Lead generation is a “numbers game.”
- Systematic marketing is more important than creative marketing. Consistency and frequency of contacts are more important than the creativity of the message.
- A lead generation plan should be more ambitious than income goals.
Impact of Economic Model:
- An economic model helps determine the number of appointments needed to achieve goals. Conversion rates help calculate the leads needed to get those appointments.
- Formula:
- Goal (number of deals): N
- Conversion rate from appointment to deal: C1
- Conversion rate from lead to appointment: C2
- Number of leads required: L
- Formula: L = N / (C1 * C2)
Lead Generation Ratios:
- Key ratios:
- Response rate: Percentage of contacts responding to marketing messages.
- Qualification rate: Percentage of respondents considered qualified leads.
- Conversion rate: Percentage of qualified leads converting to actual customers.
Local Variables and Team:
- Local economic, social conditions, and market competition affect lead generation effectiveness.
- The lead generation plan should align with the team’s capabilities and experience.
- Be prepared to adjust the plan based on actual results and market changes.
Cost of a Lead Generation Program:
- Calculate costs:
- Direct costs: Advertising, direct marketing, and promotional materials.
- Indirect costs: Time and effort spent by the team.
- Opportunity cost: Value achievable from using resources in other activities.
- Return on Investment (ROI): Expected returns should exceed costs.
- ROI Formula: ROI = ((Revenue – Costs) / Costs) * 100%
Chapter Summary
This chapter focuses on understanding lead generation❓ numbers as a structured scientific system. It aims to provide tools and knowledge to evaluate lead generation options, understand the economic model’s impact, identify crucial ratios, and calculate associated costs❓.
Key points:
- Scientific Evaluation of Lead Generation Options: Adopt a scientific approach when choosing lead generation methods, focusing on a specific marketing❓ or prospecting aspect needing improvement. Model proven methods used by others in similar markets. Develop an integrated plan including budget, message, target audience, and integration into the overall strategy, defining expected outcomes for effectiveness evaluation. Track lead sources and record them accurately using a dedicated spreadsheet (as detailed in the MREA operations manual). Use any marketing or prospecting method consistently for 3-6 months to determine its true impact. Evaluate program costs against net results to determine the cost per lead.
- Importance of Numbers: The primary goal of lead generation is numbers. Increasing the number of leads is crucial regardless of conversion rates. Lead generation is not just a numbers game, but a huge one. Systematic marketing is more important than creative marketing. Consistency and repetition in communication are most important.
- Impact of Economic Model: The economic model helps determine the number of appointments needed to achieve goals. Conversion rates can then calculate the necessary number of leads to obtain those appointments. Leads are the fuel of the economic engine.
Conclusions:
- Lead generation is a scientific process based on accurate tracking❓❓ and analysis of numbers.
- Quantity is very important in lead generation.
- Consistency and repetition in marketing are more important than creativity.
- The lead generation plan should be more ambitious than financial goals.
Implications:
- This knowledge helps real estate professionals make informed decisions about lead generation investments.
- It enables them to optimize marketing and prospecting strategies for maximum return on investment.
- It contributes to building a sustainable lead generation system, ensuring long-term financial success.
- The lead generation plan should always be more ambitious than income targets.
