Lead magnets: the first value exchange with your customer.
After making all the effort to design your website, populate it with content and carefully managing your SEO it would be a travesty if your website failed in its ultimate goal; to convert visitors into customers.
Conversion optimisation, the process of using: incentives, analytics and feedback to improve the rate at which visitors are converted to paying customers (Qualaroo.com, 2017) relies heavily upon exchanging value with visitors as they progress through your website’s conversion funnel.
One of the most critical facets of conversion optimisation is having a superlative lead magnet. Digital Marketer defines a lead magnet as “an irresistible bribe offering a specific chunk of value to a prospect in exchange for their contact information”. Lead magnets usually take the form of a piece of content that is specific and valuable to your audience. Lead magnets should also be composed of content that can be consumed quickly, to ensure that a consumer derives its value before they become preoccupied with their lives instead of your fantastic product or service.
Let’s examine two examples; one good and one bad.
Hootsuite’s lead magnet is realised in the form of a “risk free” trial of their social media marketing platform. This lead magnet is effective because it provides immediate value to a consumer, while helping them actualise from their current state (not having social media marketing software) to their desired state: unlimited and confident marketing communications on social media.
The lead magnet is specific to the audience of the web page (digital marketers) and immediately provides value to them, demonstrating what the solution provides and allowing the consumer to directly experience the benefits derived from product usage. As an aside, Hootsuite directly empathises with the concerns of their consumers, offering benefit driven headlines that engage directly with the thoughts and feelings of potential customers.
Meanwhile, Marketo’s lead magnet fails to be timely enough – weighing in at over 100 pages. A lead magnet should be immediately useful to your prospect, taking 5 minutes or less to extract all value (Deiss, 2017). Although Marketo’s offering is surely valuable, it is not timely enough in delivering that value to be an effective lead magnet.
Customer Value Optimisation.
Customer value optimisation is the process of: increasing the number of customers your business has, increasing transaction value per customer and increasing the number of transactions per customer (Deiss, 2015).
Customer value optimisation consists of 7 processes:
- Determine product market fit.
- Choosing a traffic source for your website.
- Offer a lead magnet that is specific and valuable to your audience.
- Offer a tripwire: a modest offer that demonstrates your core products value to potential customers.
- Offer your core product to your potential customer.
- Offer a profit maximiser: any additional products to increase profit derived from each transaction.
- Create an easy path for your new customer to return to your website for future purchases through digital mediums.
Let’s illustrate this process using our pretend tea company, “Mountainleaf”.
Traffic source: for Mountainleaf, I would use a combination of Facebook native ads and display ads on search engines to drive visitors to my website.
Lead magnet: I would offer a cheat sheet that explains the correct way to prepare each type of tea to bring out specific flavours or notes as well as the health benefits of the tea family.
Tripwire: I would offer small samples of teas – especially purple tea which is extremely rare and not usually available outside of China. Purple tea has the most health benefits through antioxidants and flavonoids of any tea type and would hopefully entice curious prospects.
Core product: of course, my core product would be premium, loose leaf teas with far superior quality and range of product comparative to national tea sellers.
Profit maximiser: I would offer accessories to augment and enhance a customer’s tea drinking experience, products that would allow a customer to truly enjoy their tea more easily. Examples would be: strainer balls, strainer basket, tea pots, and beautiful cups.
Easy path of return: to lay an easy path for customers to return to my website, I would: invite them to follow the brand on social media for exclusive offers and discounts, remarket to them utilising the information they have provided me and invite them to visit my blog to find more interesting and relevant content.
Overall, conversion optimisation and customer value optimisation are essential to any business. Like any living thing, unless a business is growing and renewing itself, it will begin to stagnate and eventually die. Ensuring that you provide the best value in your marketplace to your consumers and that they in turn provide value to your business is integral to its survival in the darwinian marketplace.
Deiss, R. (2017). Lead Magnets | 9 Lead Magnet Ideas and Examples. [online] DigitalMarketer. Available at: http://www.digitalmarketer.com/lead-magnet-ideas-funnel/ [Accessed 8 Aug. 2017].
Goliger, S. (2017). The 5 Critical Components of Fantastic Lead-Capture Forms. [online] Blog.hubspot.com. Available at: https://blog.hubspot.com/blog/tabid/6307/bid/28472/the-5-critical-components-of-fantastic-lead-capture-forms.aspx [Accessed 8 Aug. 2017].
OptinMonster. (2017). 69 Highly Effective Lead Magnet Ideas to Grow Your Email List (Updated). [online] Available at: http://optinmonster.com/9-lead-magnets-to-increase-subscribers/ [Accessed 8 Aug. 2017].
Qualaroo.com. (2017). The Beginner’s Guide to Conversion Rate Optimization — Qualaroo. [online] Available at: https://qualaroo.com/beginners-guide-to-cro/ [Accessed 8 Aug. 2017].