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Even in a narrow target market; you must not treat all prospects equally. The more money you can spend marketing to high-probability prospects, the better your chances are of converting them to a customer.
Consider this:
If you have £1,000 to spend on an advert and the campaign reaches 1,000 people, you’re essentially spending £1 per prospect.
Now, assume that out of the 1,000 people the ad reaches, 100 are potential prospects for your product. By treating them equally, which you would have to do with mass marketing, you’re wasting £900 on uninterested and unmotivated prospects to reach the 100 who are interested.
What if, instead of treating them all equally, you could sift, sort and screen so that you were only dealing with high-probability prospects and not wasting valuable time and marketing budget on uninterested and unmotivated prospects?
You could then spend the whole £1,000 on the 100 high-probability prospects. That would allow you to spend £10 on wooing each of them instead of the measly £1 per prospect you’d have if you treated them all equally.
You will get a much better conversion rate with ten times the firepower aimed at the right targets.
So, how do you separate the wheat from the chaff? The short answer is a Lead Magnet.
A straightforward lead-generating Ad could be headlined: “Download your Free personalised Google Business Profile report”. Anyone requesting this report would be identifying themselves as a high-probability prospect. You now have their name and address, which would go into your marketing database.
Remember, the goal is simply to generate leads. Avoid the temptation of trying to sell from your Ad. At this early stage, you just want to sift out the uninterested and unmotivated so that you can build your database of high-probability prospects.
Here’s the other big reason you want to avoid selling directly from your Ad: at any given time (on average), about 3% of your target market is highly motivated and ready to buy immediately. These are the prospects most mass marketing hopes to convert. However, a further 7% are very open to buying, and another 30% are interested but not right now. The next 30% are not interested, and finally, the last 30% wouldn’t take your product even if it were free.
If you tried selling directly from your Ad, you’d be targeting only the 3% who are ready to buy immediately and losing the other 97%.
Creating a lead-generating ad increases your addressable market to 40%. You do this by capturing the 3% who are immediate buyers and the 7% who are open to talking, and the 30% who are interested but not right now.
By going from a 3% addressable market to 40%, you’re increasing the effectiveness of your advertising by 1,233%.
This also has a secondary side effect on the people ready to buy immediately. They see you’re not desperate to sell or discount your product or service. They see that you are interested in building a relationship first rather than just going for the jugular to make a sale.
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