Effective online lead generation is contingent on some low-tech elements. Active Response Group's CEO explains.

One of the most stunning benefits of online lead-generation technology is that it helps you get closer to your customer in real time. It also has the ability to build a brand's profile while building sales. But its ultimate success hinges on two critically important "low tech" elements: a rigorous, end-to-end campaign plan and good communication with your lead-generation provider.

There are several common missteps that prevent advertisers from maximizing lead-generation opportunities. One example might be a lack of real clarity about how the leads will be measured and monetized initially, much less how the data might be used for re-marketing purposes. Another example is having a very cohesive and quantified plan, but not clearly communicating the goals and metrics that define a campaign's success to the lead-generation provider.

Yet another common misstep is to sit on leads too long without reaching out to consumers who have already expressed interest in a product or service. For example, a month in email time can be an eternity, and a marketer is not only at risk of losing the lead's interest, but also losing a potential transaction to a competitor in the meantime.

To get the best results, it's important to have a rigorous and disciplined direct marketing plan in place that leverages a variety of resources, such as incentives, databases, email, and call centers, to convert leads to sales. What's more, it's important to give the lead-generation partner appropriate visibility into the campaign plan.

Connecting the dots
Here's a hypothetical example. A vacation website wants to generate leads for this offer: Get a Free Vacation Planning Guide for “Girls Weekend” Trips. The target audience is single women, 25 to 34, with specific behavioral and psychographic attributes. Based on this profile, there are a few different ways to generate leads for a campaign.

Program #1 would include basic information (first name, last name, street address, email and phone number) on positive responders to a simple message such as: "Yes, I'd like to find more information on great ideas for destinations for my next girls' weekend." This campaign is designed to generate the maximum number of leads at the lowest cost per lead (CPL).

Program #2 would include basic information on positive responders to a full-page ad to receive information, sample itineraries and coupons. The mailing addresses would be validated against a third-party database. This campaign generates fewer leads than the first, but there would be more confidence in the accuracy of the mailing addresses.

Program #3 would include basic information on positive responders to a full-page ad for information on vacation planning. This option would also include respondents' answers to questions regarding desired destination, budget, number of travelers and timing of the trip. This campaign has the highest cost per lead (CPL), but it also generates the richest lead profile and with several crucial data points.

What's the best campaign? What are the criteria of success?

If you have a strong CRM program in place that is executed primarily via email, #1 would be the right choice. But if you plan on following up by sending a brochure via the US Postal Service to all of the leads generated, #1 is a terrible choice because fulfillment costs would be prohibitive. In this particular marketer's case, campaign #2 is a better solution.

In yet another situation, suppose you have a call center or sales team at your disposal that can accept real-time leads. The sales people can instantly follow up with a phone call to prospects with a customized script based on unique user information. Then #3 would be the way to go. But if the follow up has to be identical for each prospect, there may be limited value in capturing the additional information. In that case, plan #2 would probably be more cost effective.

Ultimately, it all depends on what you are going to do with the leads once they are generated.

Of course, this is a very simplistic example, but it demonstrates how the more information you can share with your lead-generation partner, the more opportunity there is to develop a sophisticated, cost-effective solution. So here are four recommendations:

Online lead generation can be a powerful tool, but if it were a product, I'd make sure it carried a warning label: For best results, use only within the context of a well-defined marketing campaign and communicate with your lead-generation partner about the business result you want to achieve.

Brad Powers is CEO Active Response Group. Read full bio.