Social media and lead generation sites the best option for new business

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While social media is the glue that holds together many small businesses and corporate marketing strategies, serviceseeking.com.au’s latest figures suggest tradies can learn a lot from their corporate counterparts and turn social posts into customers.

Unlike traditional marketing, you don’t need a massive budget or plenty of free time to join the social media bandwagon and serviceseeking says when it comes to getting bang for your buck – social media delivers one of the cheapest ways to generate new customers.

The marketing report compiled by serviceseeking suggest digital marketing can be far more cost-effective than traditional marketing efforts and provides clear objective-based metrics with which to gauge the value of your marketing spend.

While many words have been written on the importance of Google Adwords, serviceseeking found social networking sites provide better connections and cheaper options for acquiring customers, while lead generation sites topped the list when it came to value for money.

Breaking down the costs by marketing spend:

Lead Generation Sites- $10 to acquire a new customer

Assumptions:

The cost per lead ranges from 50 cents per lead on sites like ServiceSeeking.com.au to $25 per lead on sites like Oneflare and HiPages.

5% closure rate.

Data sourced from ServiceSeeking pricing schedule and competitor analysis

Facebook/Instagram- $15 to acquire a new customer

Assumptions:

Cost per thousand views is $30

Cost per acquisition of new customer is $15

10% of social media followers will become paying customers

Data sourced from ServiceSeeking’s Facebook advertising dashboard

SMS – $20 to acquire a new customer

Assumptions:

It costs 6 cents to send an SMS at low volume

1% response rate

30% of responders will become paying customers

Data sourced from twilio.com and ServiceSeeking internal SMS data

Signage- $23.50 to acquire a new customer

Assumptions:

Cost of car wrap is $4500

2500 people see brand name per day in metro areas

0.7% will call a business

30% will become a paying customer

Data sourced from signarama.com.au

Flyers- $26.35 to acquire a new customer

Assumptions:

The cost to design a standard single sided flyer is $85.

To print 10,000 single sided flyers costs $249.

To distribute in a metro-area costs $456.50.

1% will then call

30% will become a paying customer

Data sourced from bellprint.com.au

Google Adwords- $32 to acquire a new customer

Assumptions:

Cost per click is $1.33 (average broad match keywords across 20 industries).

12% conversion rate

50% will become a paying customer.

Data sourced from ServiceSeeking’s Google Adwords account (multi-million dollar yearly spend across hundreds of thousands of keywords)

serviceseeking suggests the digital space has levelled the playing field for small businesses with lead generation sites leading the way in connecting businesses with new customers.

 

 

 

 

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Cec is the editor of KBB. She is a multimedia professional with over fifteen years experience as an editor on titles as diverse as SX, Better Pictures, Total Rock, MTV, fasterlouder, mynikonlife and Fantastic Living. She has spent the past four years working as a news journalist covering all the issues that matter in the political, health and LGBTIQ arena. She is the Head of Content at Pinstripe Media and a recent convert to the world of small business.

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