In today’s post, we will focus on a topic that is gaining importance these days.
The global pandemic caused by the spread of the COVID-19 virus is forcing all companies to turn to other methods of acquiring customers. Not every company can afford advertising on national television. Currently, all traditional business meetings have been replaced with online. At a lower cost, you can advertise your company with sponsored ads on the most popular search engine or social media, but most people will probably agree that advertising this way is not the most effective way to advertise yourself.
In the fight for new customers, companies often decide to buy a ready-made database and this is what today’s post will be about. We will focus on B2B products or services.
The cost of one record with one of the most popular database providers in Poland is about 1 PLN (about a quarter of a US dollar, according to the rate for November 6th 2020). The information contained in one record may contain such data as: company name, contact persons, address, website address, e-mail address, contact telephone number, or even employment and export volume. We also have the ability to define very specific – although limited – criteria for searching for the companies that interest us.
Our experience shows that only 25% of the records provided by the one of the main databases providers in Poland have data which is up-to-date. To put this into an example: if you request for marketing companies in New York City, NY in the United States, and the total number of the database is 1000 companies, only 250 are up-to-date. The rest changed their address for the different location, the website address and e-mail address have changed – or even worse, the company is out of the business.
The cost of generating a database of companies based on the above criteria is 1000 PLN (approx. $260), of which, on average, 750 PLN (approx. $200) is irretrievably lost to companies that may even not exist anymore. The main problem is that the data is outdated and you have to pay for it anyway.
Another method of obtaining data of potential customers is to build a database yourself. You can use the websites of trade associations for this purpose, which often has a list of members. You can also use the LinkedIn portal to find valuable leads, where you can also post sponsored ads. A premium account on LinkedIn costs you some, but it gives access to useful tools.
Building your own database of potential customers is a very time and labor-consuming work. We estimate the acquisition of the above-mentioned database for over 80 hours. Assuming a standard 40-hour working week, for one employee, getting 1000 leads is about 2 weeks of uninterrupted work. It is worth is though, because we can be absulutely sure that the collected database is up-to-date and meets our needs in almost 100%. Converting it into money, with the latest data from the Polish labor market, which say that the average net hourly wage in Poland is PLN 22 (about $6) per hour, the cost of one lead is approximately PLN 1.83 (approx. $0.5). Almost twice as much as when buying a ready-made database. However, as we mentioned earlier, the purchase of the database has a hidden cost in the form of outdated data, for which we pay anyway.
There are many methods of acquiring potential customers – Content Marketing for example. The method is about publishing information on any channel you company use – lets give company’s blog as an example. The published content is designed to provide useful information to the audience which can transform to your potential client. It also attracts attention to your company.
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ME PL Solution Team