Are you looking for more strategies for capturing and converting leads? Lead magnets could be the solution.
What is a Lead magnet?
At its core, a lead magnet is a valuable resource that's going to pull in potential customers because you offer some sort of service or a gift in exchange for their contact information, typically an email address.
We don't see as many that go straight for the phone number or straight for a mailing address. Lead magnets are designed to attract and capture leads, leads being potential clients or customers in your business. They are people who may have shown an interest in your business, product, or service, and it gives them a taste of who you are and what you do.
It's kind of like having a sample at an ice cream shop. It helps you to decide which ice cream choice you want to have or in the case of some places like Costco, having a sample of something you maybe didn't even know you wanted causes you to buy it.
Usually lead magnets are digital assets: ideally something you give online that is passive (you don’t have to work more to give them), and something that doesn't cost you money every time like a physical book. In the case of the ice cream and Costco, they're giving you a sample of an actual product.
But oftentimes for coaches, speakers, trainers, facilitators, and experts, what you want to do is give them a taste of working with you. It could be things like ebooks, white papers, templates, webinars, checklists, a 5-day challenge, exclusive access to different resources, or a set of videos. It can even be you giving them a month into your membership or access to a mini course.
Why lead magnets?
Well, you may feel how fast-paced this digital marketing world is, and we need to capture the attention of potential customers. We need to convert them from a lead into a customer. That is our top priority in marketing.
This is where lead magnets come in. It is a gift you would give in response to them giving you their email address. Lead capture, lead magnet, or maybe a gift is what you want to call it.
These are very powerful marketing tools. Sometimes, depending on how you put it together, they can offer irresistible incentives. They can also give valuable content in exchange for that contact information.
Benefits of Lead Magnets
Here are some benefits of a lead magnet, and I would love for you to think which one is most important to you. If you're having any of these as opposite problems in your business, then you definitely want to bring in lead magnets because not everyone likes marketing and not everyone is good at marketing.
If you can have a good lead magnet in place, this is going to help you to really build out your marketing strategy, your list and it will work for you while you are not working or you're doing other things.
Benefit 1: Lead generation
Lead magnets serve as a powerful tool to generate leads by enticing your visitors on your website, social media platforms or even when you're speaking at an event to take the next step with you.
There are so many different ways to present this lead magnet and that helps you to get their contact information, so you offer this valuable content or incentives and businesses can expand their pool of potential customers and that's what you're wanting.
There was this one time, I was looking to buy some specialized veterinarian cat food for my cat because she was having some kidney troubles. I went on the company's website, and obviously, a lead magnet pops up and offers me a coupon of $5 off when I purchase from their company.
Benefit 2: Increase your conversion rates
Many people think, “Oh, I'm just getting this because you want to get clients.” Don’t all businesses want clients? It’s the way the economy works. Lead magnets increase your conversion rate because well-crafted lead magnets have the potential to bring in more leads and position what you do for the sale.
When those prospects are presented with this valuable content, you're giving them your good stuff or these exclusive offers (key thing: addressing their specific pain points), they're more likely to engage in that material. They're more likely to then provide their contact information to get it, and it helps them to get a taste of what you're about and then you can nurture them afterwards in your sales funnel and guide them toward your sales conversion.
They're going to think something like this, “Wow, I got this (insert lead magnet name here). This was really amazing. I used it. It helped me. I want more from this person”. You're starting to build trust in that relationship.
Benefit 3: Builds customer relationships
Lead magnets help build customer relationships because it provides an opportunity to build trust and credibility with these potential customers. You're offering valuable resources, so businesses can establish themselves as an expert, and a trusted adviser in their industry or field.
Having regular follow-ups through email marketing or other channels allows for ongoing communication. You don't want to just give them a lead magnet and then be quiet. You want to be fostering that deeper connection, and then that will help with conversion.
Benefit 4: Target marketing
Here’s an example. One of my lead magnets is, “The Three Dangerous Trends Professional Women Face that Keep Them Overworked, Overwhelmed, and Pulled in a Million Directions.” Now I can change out the label of “professional women” to coaches, speakers, or whoever I'm wanting to promote to.
This lead magnet allows you to segment your audience. If you give a specific lead magnet, and then they say, “I want that lead magnet”, it means they spoke to them.
Then you can put them as,
When they say yes to the lead magnet, it shows that they're interested. When you know that they're interested, it helps you to tailor your communication and your offers to them, which enhances the engagement and the conversion rates.
If you give your list or even if you go back to your list, and you offer these lead magnets, then they’re self-selecting which ones they want. In particular, you can do this in your Facebook group or other groups online.
Benefit 5: Establishing authority
When you offer these high-quality lead magnets, it actually makes the person say, “Oh, I'd be stupid not to take this”, and then it positions your business as an authority in the industry or the niche.
You get to have valuable insights and information from them, and then they get your expertise from you. You're also able to differentiate yourself from your competitors.
If you're showing your material, it could be a checklist or a white paper, but it's really playful and really colorful, and it’s in your voice. Or there are little videos that go with it, you're showing your personality. Maybe when someone else shows themselves as someone who's giving lots of stats or super professional with graphs, you can show what makes you special - your unique positioning can come across.
We want people to consume your lead magnet. We don't want to give them something too big and crazy to complete because they won't use it. When your leads consume this valuable content, it really helps them to have that deep sense of trust and confidence in your business, which then influences their business purchasing decisions.
We want them to purchase from us and if they see us as the authority then they'll only want to come to us. Even if they were only looking to have a few choices, or they didn't even know they wanted this, as soon as they realize you're the authority, it's really hard for them to pick some other company to go with.
These are five benefits of having lead magnets. If you don't have one, I encourage you to make one. If you have one and it's not converting well, I encourage you to go back through those five and just see what piece you can tweak.
In my next blog, I will share examples of lead magnets and ways you can create a lead magnet.
P.S. Here’s a lead magnet you wouldn’t want to miss! Grab your copy of “The 5 Critical Problems to Avoid When Delegating.” This will help you maximize your time and increase your profits!
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