Lead Generation and Profitability

Lead Generation and Profitability

Lead Generation and Profitability

You probably know that online marketing works. You can’t grow dynasties like Google or Amazon if it didn’t. What you might not know is how well your search engine optimization, content marketing, and social media initiatives are contributing to your profitability. This article will summarize the findings of a study performed on the impact of online marketing on a company’s growth rate and profitability.

Growth Rate and Profitability from Lead Generation
Hinge Research Institute Chart

The goal of the Hinge Research study was to determine if online marketing was a prudent investment. It used data from 500 companies. Looking first at the average firm growth rate which is illustrated in blue, the lowest growth rate was experienced by companies that received 0% of their leads from online sources. The greatest growth rates are experienced by companies who get 40% or more of their leads from online lead generation. The sweet spot in terms of growth is with companies receiving 40-59% of their leads from the web.

Next, taking a look at the profitability rate which is in red, one sees that the more leads a company generates online, the more profitable a company is. Online leads are generally less expensive than leads generated from alternatives such as direct mail, outbound telemarketing and radio and television. More leads from a less expensive source lowers the average cost of a lead and profitability increases.

If your company wants to grow faster and be more profitable, then online lead generation will help you achieve these goals. Where do you start? Any marketing initiative you undertake online should have the full commitment of management. Start somewhere and stick with it. Benefits compound over time and you don’t want to abandon an online strategy right before it starts to pay you dividends. You don’t need to completely ignore traditional marketing methods either. In fact, the most profitable companies get 40% to 60% of their leads offline.

If online lead generation is a priority for your company this year, then we’re here to help.


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