When collaborating with our clients we devote a excessive deal of time conversing contact data. Who is the target, how easy are they to locate, what are key role descriptions, and what is the message you bring to them. We are industrious about educating them with regards to direct dials, the need for emails, and the ownership of the list versus a rental list. All of these are critical but often ignored by organizations looking to purchase data. A list is assumed to be a commodity item and yet it is far from it. The list is the key driver for all other actions that happen in the sales campaign. It is one of the most critical portions of any marketing outreach.
During the MarketingSherpa B2B Summit 2011 presentation, presented by MECLABS, “Optimizing the Lead,” it was discussed that a $1 per record list (“the best deal”) results in a campaign that is 2.5 times more costly than the most efficient list. In the study, the $1 per record cost, resulted in a $954 cost per lead. In a list that cost $24/record, the cost per lead was $373 and resulted in a 60.85% decrease in overall campaign costs.
Targeting Your Prospects Correctly
The details in arrears this result are clear to see. Although the $24/record list cost $24,000, the calling campaign associated with that list cost $92,400, for a total campaign cost of $116,400. Comparing these metrics to the $1/record list; the total list cost was $9,350, but the calling campaign associated with that list was $287,980, for a total of $297,330. At the end of the day which result would you take?
The key takeaways are that “cheap” data is really expensive, and the less you spend on the data the more you will spend on tele-prospecting. List acquisition must be seen as strategic and not simply transactional if you need to roll your marketing strategy.