October 11, 2010
Luxury brands need to be using online lead generation to reach out to consumers on the Internet, according to research by Econsultancy and Clash-Media.
Online lead generation has the potential to target any profile of consumers and engage them across the Internet to ultimately get them into an ecommerce environment. The technology can provide accurate information to target individuals based on their specific preferences, which for luxury brands means gaining better visibility with interested consumers and securing an opt-in to be contacted for further information, an endorsement for the brand.
“Identifying exactly what consumers want to see, in terms of products, is valuable information to be used in determining how to best continue engaging with them,” said Matt Conlin, sales director at Clash-Media, London.
Online lead generation is playing an increasingly important role for businesses. On average, online lead generation is now responsible for 42 percent of total sales, according to the study.
In an increasingly multichannel world, the proportion of companies who are generating leads online with the intention of converting them offline has increased from 70 percent last year to 81 percent this year.
Social media
The study shows that the proportion of companies using social media as a sales tool has risen from 40 percent in 2009 up to 66 percent this year.
Only 15 percent of companies are using social media to nurture and generate sales on a long term basis, however.
The number of respondents who said that their online lead generation budgets have increased has advanced from 59 percent in 2009 to 65 percent this year.
The report found that the proportion of organizations that are now spending annually more than $150,000 on online lead generation has increased from 21 percent in 2009 to 38 percent in 2010.
“As companies begin to move out of recession mode, many are beginning to increase their marketing budgets in a bid to reap the benefits of online lead generation across multiple channels,” Mr. Conlin said.
“Because of such investments in online lead generation, people are beginning to see the tremendous benefits it brings in driving sales, hence the 42 percent sales figure,” he said.
One of the most surprising findings of the report was the social media statistic.
“With such a huge increase in the take-up of social media, to find that only 15 percent are using it effective comes as a surprise and something that companies need to identify and address as part of their marketing strategy,” Mr. Conlin said.
Paid search
The study also shows increased use for almost all digital channels for generating consumer leads.
Paid search is now regarded as the most effective channel for online lead generation, overtaking SEO since last year.
Forty-six percent of respondents said that paid search is “very effective” and 45 percent said it is “quite effective.”
The largest increase from last year is rich media and video, with 25 percent saying it is very effective, compared to the 11 percent from last year.
Not Rich Yet
HENRYs – High Earners, Not Rich Yet – consumers with average annual incomes between $100,000 and $250,000, have an effect on online lead generation as well.
“In terms of the HENRYs, online lead generation could help in identifying and delivering information on a large volume of potential customers who are interested in your product or service,” Mr. Conlin said.
Peter Finocchiaro reported for this story.
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