Lead generation has always been a challenge for businesses. As this is the first step in actively getting potential customers into the sales pipeline, it’s importance cannot be understated.
Lead magnets are a tool that businesses use to encourage potential customers to share contact information. That point of contact is then used to build trust and work towards a conversion. Here are eight tips for creating a successful lead magnet to improve your business.
Consider Your Ideal Customer
First, take a deep dive into the needs and key identifiers of your potential customer. Consider their demographics, including their socioeconomic status to their geographic location. Many businesses create customer avatars to give their ideal customer a persona. The avatar acts as the framework for shaping product offerings and testing marketing strategies.
During this exercise, you should also be revisiting your USP—Unique Selling Proposition. Draw connections between your USP and your ideal customer. Consider what problem your customer faces, and more importantly, how your business can solve it.
Choose Value vs. Cost
Measuring the value versus the cost is essential when deciding which lead magnet might be right for your business. There is no clear recommendation for what you should choose— it all depends on your business.
Your lead magnet should be affordable and straightforward to produce, but it should also offer value. This entry-level offering will be a taste of what your business can do for paying customers.
To drive the process, hold a brainstorming session. Then, create a matrix with four quadrants. Label each quadrant as follows:
- High cost, low value
- High cost, high value
- Low cost, low value
- Low cost, high value
Place your ideas in the matrix based on how much it would cost to produce the lead magnet versus the perceived value it has. Ideally, your lead magnet will fall in quadrant four.
Consider the Competition
Remember to keep the competition in mind when working through this exercise. Your goal is to have something a little more enticing or valuable to encourage leads to come to you rather than them. Take a look at what your competition is offering and identify if there are any gaps that you could improve upon.
While it’s fine to have a similar offering, you don’t want to have something that looks copied, otherwise, it won’t be in alignment with your brand. Don’t hesitate to get inspiration from similar businesses outside of your competitive scope. Consider things like the design they use, the formats, the delivery, and how they entice their customers.
When taking inspiration from other sources, remember the phrase, “eat the fish, and spit out the bones.” Your goal is to absorb the value, not the pitfalls. Take something and use it as a foundation to create something new— something that showcases your USP.
Put the Right Management System in Place
Sales pipelines have a lot of moving parts. For many businesses, the lead magnet is an entry point for an email marketing campaign. For others, it triggers a traditional approach to sales that includes personal contact.
Regardless of your approach, having the right system in place is for managing your leads is paramount. Put a lead management system in place so that you can keep track of where your prospects and customers are in the sales pipeline. Use an integrative email marketing program to allow for segmentation and list building over time.
Choose the Right Trigger Point
In addition to building the right lead magnet based on your prospects’ needs, you must also consider the trigger point. What action or location will initiate your offer to partake in the lead magnet?
For online portals, there’s a fine line between being convincing and being annoying. Rather than having a pop-up show within 30 seconds of leads visiting your website, rethink your approach. Add an embedded form in the middle of your top-performing articles or add an exit-triggered pop-up to avoid distractions.
Conduct A/B Testing
Don’t limit yourself to one approach or even one lead magnet. Take this opportunity to conduct some A/B testing to get a better understanding of what your customers want. For example, you could try different trigger points, different lead magnets, or the same lead magnet with a different design scheme.
When conducting A/B testing, it’s essential to put clear success metrics in place. Set an end date by which you’ll analyze your findings and make a decision going forward. If you find that offering A works better than offering B, you know to scrap the latter moving forward. You can also use your findings to shape future offerings when it’s time to refresh your lead magnet.
Use Segmentation and Variation
It’s also worth segmenting your audience and offering different leads based on where they visit on your website or what type of customer they are. After all, many businesses have a variety of offerings that appeal to different customers. For example, a B2B coaching consultant might have customers who need help with lead generation and others who require assistance with selling or retention. Using a single lead magnet may not appeal to both groups, leaving money on the table.
Don’t limit yourself to a single lead magnet if you have a multichannel business. Drill down further into your ideal customer and look for segmentation points. Using the B2B example above, this could be a simple separation between businesses that have been operating for under two years or over. From there, it could drill down into businesses that have under $100,000 in sales per year to over. Using this segmentation can help you tweak your offering to appeal to different groups.
Keep it Fresh and Relevant
Finally, keep it fresh and relevant. Information and needs are always changing. Consider how you can keep your offering up-to-date and valuable to your prospects.
Creating an incredible lead magnet is the first step in customer acquisition. It might take some time to find the perfect approach. Track your success metrics, analyze, and adapt to create a valuable offering for your leads.