This is an interview with David T. Scott, author of The New Rules of Lead Generation (amazon link). David talks about why he wrote the book, why lead generation needs new rules, why measurement is vital and why his book is different from the plethora of other marketing books.
1. So tell us, Dave, what inspired you to write The New Rules of Lead Generation?
I’ve always been surprised by how little today’s marketers know about lead generation. Almost 90% of all companies use some kind of lead generation marketing. And yet many marketers don’t know how to use lead generation marketing to their advantage.
Most MBA programs focus on brand marketing, and completely ignore lead-generation marketing, which is the “down & dirty” side of marketing. I got my MBA from Wharton, but even my program never offered any courses on lead-generation marketing.
Most of today’s marketers learn lead generation marketing on the job. As a marketing executive, I had to invent my own ways of doing effective lead generation marketing, and of tracking the costs to keep my campaigns under budget. I wrote this book to provide those methods to other marketers.
2. What sets The New Rules of Lead Generation apart from other marketing books?
The New Rules of Lead Generation is the first book to take an in-depth look at lead generation from a corporate point of view. It’s written for large and mid-sized corporations who have a substantial marketing budget.
It’s also the first book to examine both the strategy and the execution of lead generation marketing. In this book, I give you strategies for developing an effective lead generation marketing program, and for calculating the costs and determining the ROI of your lead generation efforts. I also take an in-depth look at each of the most popular lead generation tactics (direct mail, e-mail marketing, etc.) and how to use them.
Many marketing books become outdated in just a few years, because they focus on lead generation tactics that change over time. But I’ve written The New Rules so that it will never become obsolete. The lead generation strategies I give in my book will still be useful ten years from now, even if the lead generation tactics change.
3. Why do we need “new rules” for lead generation marketing?
We live in an interesting time for lead-generation marketing. With eCommerce and self-service sales, some companies don’t even need a sales force. They just need very effective lead generation marketing to help bring customers to them. It’s a powerful paradigm shift.
Also, the tactics of lead generation are in a constant state of evolution. We’re seeing the emergence of new, online tactics like Facebook ads, Twitter ads, mobile ads, and e-mail marketing. These are all effective lead generation tactics, but many marketers don’t know how to use them. In my book, I help them to understand these tactics, and provide strategies for how to use them effectively.
4. Where do today’s marketers go wrong in their lead generation efforts?
Many marketers start their lead generation campaigns with no specific goals in mind. They plunge into the campaign without determining how many leads they want to bring in, or how cost-effective they need to be. When it’s over, they have no idea if their lead generation efforts have worked, or if they’ve achieved a positive ROI for their company.
Also, many marketers don’t know which lead generation tactics will provide them with the best leads, or help them to reach their target customers. Some companies are using only one lead generation tactic at a time, when they could be using five or six to their advantage. Other companies are still using a lead generation tactic that served them well in the past, but which is now outdated to their current business needs.
In my book, I show marketers how to set goals for their lead generation efforts, and how to test and measure their lead generation results. I also show them how to determine which lead generation tactics are the best for their type of organization.
5. Your book focuses on testing and measuring of marketing results. Why is it important for marketers to test and measure their lead generation efforts?
I’m amazed at how many organizations don’t test and measure their lead generation results. They spend all this money on lead generation campaigns, and they have no idea how well those campaigns are working for them. They have no idea which tactics are giving them the most leads, or even if the tactics they’re using are giving them the right kinds of leads, which they can turn into sales.
In my book, I give strategies for testing and measuring your lead generation results. I also give strategies for testing different tactics against each other (i.e. testing display ads vs. trade shows). Your goal should be to find out which tactics give you the highest number of quality leads, and then continue to use those tactics over the others.
6. Also in your book, you talk about calculating and tracking the costs of lead generation marketing. How important is this for marketers?
Again, this is one of those things that amazes me. It’s surprising how many company’s don’t keep track of their costs. If your Cost-Per-Lead is $100, but your product sells for $50, you could be losing money to acquire customers, especially if your product is a one-time sale item. On the other hand, if your customer has a Lifetime Value — if, say, they’re going to buy a $50 product from you every month for several years — that $100 CPL you spent to acquire them could be very cost effective over time.
Also, marketing executives need to know how to determine their Return On Marketing Investment (ROMI), in order to justify their lead generation efforts and budget. If you can show your superiors that your lead generation efforts have been successful and cost effective, you may see your marketing budget increased. Your superiors may put more faith in you if you can demonstrate how your lead generation efforts will provide a positive payback for your company.
About David
Dave T. Scott has been a frustrated marketing executive for years. Having faced the lead-generation problem while serving as vice president of marketing for a number of businesses, he quickly became an expert. While touring the country speaking on lead generation, Dave quickly realized that every company has the same problem. This is why he wrote this book.