Cost Per Lead and the Long-Term Value of a New Client
Ever calculated your cost per lead?
We do it for clients all the time.
After nearly a quarter-century in the seminar marketing business, LeadingResponse has connected thousands of financial advisors and insurance agents with millions of qualified prospects.
Let’s look at how cost per lead factors into long-term client value.
One of the nation’s biggest inbound marketing automation providers, HubSpot, tracks customer acquisition cost (CAC).
It’s what they spend on sales and marketing, including programs and activities, salaries, commissions, bonuses and overhead in relation to attracting and converting new leads.
HubSpot determines CAC by dividing these costs by the number of new customers.
Meanwhile, Huify, a small, regional digital agency (and HubSpot partner), measures customer lifetime value.
They define it as the estimated profit generated by a customer over the course of their business relationship with the company.
Calculating Cost Per Lead
If you’re an advisor or agent trying to attract more clients and boost production, ask yourself the following question:
Am I getting a $3 to $8 back for each dollar I’m investing?
If the answer is no, it may be time to change up your strategy.
Some companies and financial professionals stick to digital channels to promote their seminars and workshops. Are you among them?
Whether you realize it or not, you’re ignoring the approximately 40% of your prospects who aren’t online.
A balancing act
The most talented sales professional can, at times, find it challenging to juggle competing priorities.
He or she must serve existing clients while pursuing new ones.
But keep this in mind: people research companies before doing business with them.
Therefore, if they see advisors and agents sharing positive reviews on social media, they will assume they’ll have a positive experience, too.
On the other hand, if clients are complaining about a company’s products or service, that can hurt a salesperson’s chance of closing a deal.
Knowing your audience
Building relationships and earning clients’ trust is critical to the success of any business.
To date, LeadingResponse has delivered one million seminars.
Along the way, we have collected massive amounts of client response data.
For example, we can identify prospects using criteria including income, net worth, Income Producing Assets (IPAs), home ownership, and more.
Hyper-local targeting helps ensure we pull the right list, send the right invitation, and extend the right offer.
To keep costs down, some companies only do food-free events.
LeadingResponse gives clients the option of dinner seminars, workshops without meals, or a combination of the two, if they’d like to mix things up.
No matter which format you choose, with our Seminar Assurance program, the results are guaranteed.
Have you hesitated to try seminars because of the expense? If so, LeadingResponse has a monthly payment plan to help you get started.
Face to face
By meeting with prospects in person rather than just relying on digital promotions, financial advisors and insurance agents are much more likely to convert them into clients.
Since our founding in 1995, we have connected over 22 million consumers to advisors and insurance agents who can answer their questions and assist them with retirement planning.
If you would like to learn more about our lead generation and client acquisition solutions, or you’re ready to explore the possibilities, get in touch with us.