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The story of Hansel and Gretel follows a pair of lost siblings. As they wander through a forest, the hungry children happen upon a house made of candy and cake. As they begin to eat the house, an old witch lures them inside to eat them.
From the witch’s perspective, the candy house is an effective lead magnet—a free resource offered to attract potential “customers.” She offers the siblings something they want and gets what she wants in return—until they escape, that is.
Incentives encourage behavior. As long as no witches with cannibalistic intentions are involved, both sides can be satisfied with the exchange. You can use incentives to enhance lead generation by offering perks in exchange for contact information. Here’s how to create lead magnets to grow your business.
What is a lead magnet?
A lead magnet is a perk or incentive that encourages customers to share their personal information so that a business can market to them effectively. You offer these perks during lead capture, or the process of collecting contact details from unregistered website visitors. Once you collect this data, you can target these potential customers with conversion-focused messaging to move them through your sales funnel.
Effective lead magnets provide true value. If you offer something consumers actually want, they’re more likely to provide their information to gain access. Popular lead magnet offerings include educational materials, product discounts, and personalized recommendations.
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Why use a lead magnet?
You can use lead magnets to increase engagement and nurture strong relationships with your customers, but it can be a time-intensive process. Here are some of the benefits and drawbacks of adding an incentive to your lead generation process:
Benefits
- Increase email subscribers: Adding captured leads to your email database creates a larger pool of potential customers.
- Increase engagement: Offering a high-quality lead magnet creates an additional way for customers to interact with your brand.
- Collect customer data: A lead capture form—a web form for collecting contact information from potential customers—can include basic demographic or interest-based questions, allowing you to deliver more targeted messaging.
- Reduce ad spend: Compared to traditional advertising, the low upfront cost makes lead magnets an accessible marketing approach for small business owners.
Drawbacks
- Takes time to set up: Creating a great lead magnet may require copywriting, graphic design, and video resources.
- Requires updating: Most lead magnets require periodic updating to maintain relevance.
- No guarantee: Low-quality leads may unsubscribe after collecting the free resources or if the content they receive doesn’t align with their expectations.
Types of lead magnets
Almost anything that appeals to your target audience can be an incentive—educational videos, interactive quizzes, and written reference materials can all be excellent lead magnets. Here are the most popular lead magnets for ecommerce companies:
Quizzes and assessments
An interactive lead magnet like a quiz or assessment is a highly engaging way to collect contact information. Quizzes offer users a personalized recommendation based on their results.
A hair care company, for example, could create a free tool that provides a custom product routine when customers answer a series of questions about their hair concerns. You may be able to use the additional information collected during the quiz to segment leads based on needs and interests.
Guides, checklists, and templates
A free resource can be a high-value lead magnet. Guides, checklists, and templates are quick reference materials designed to make a specific task easier.
Focus on creating a document related to your product or service to increase the chances it appeals to your audience. For example, a stationary company could offer a guide to letter-writing etiquette. If a visitor believes your template will help them, it will attract more leads.
Webinars and workshops
A free course like a webinar or digital workshop offers users in-depth learning opportunities. These are often pre-recorded videos or live web seminars that share your expertise on a particular subject. Educational lead magnets can build deep relationships with customers because those who complete a course may come to see your business as a trusted authority.
Whitepapers and case studies
Leverage your existing research to create a case study or whitepaper and showcase your expertise and value to potential customers. This type of lead magnet can be especially powerful for attracting business-to-business (B2B) clients.
Discounts and freebies
Who doesn’t love free stuff? Discounts and other free perks provide immediate value. A free sample or percentage discount can encourage website visitors to purchase and share their contact information. Discounts are a popular lead magnet for product-based ecommerce companies.
How to create a lead magnet
- Research your audience
- Develop the content
- Build your lead capture experience
- Nurture your leads
- Monitor and optimize
Lead magnet creationrequires research, ideation, and observation. Here’s how to develop an effective lead magnet idea and start collecting customer information:
1. Research your audience
The most effective lead magnet depends on your target audience. To develop a relevant incentive, consider who you’re marketing to and why they might be interested in your product. Identifying customer pain points can help you come up with high-quality lead magnet ideas. If your offer addresses a specific pain point, potential customers may be more motivated to share their contact information.
2. Develop the content
Map out the content you’ll need for your lead magnet. Some lead magnet formats require planning and shooting video content. Other lead magnets, like checklists and templates, involve copywriting and graphic design.
You can leverage existing content to create your lead magnet. Save time by repurposing an old blog post or case study into a user-friendly resource, for instance. If you’re working with published content, update or enhance it to ensure it offers new value to consumers.
3. Build your lead capture experience
Design a conversion path—the steps leading to a desired action—and publish your lead magnet.
In addition to your asset or offer, you must implement a lead capture form to start collecting customer contact information. It might appear as website pop-ups or on a dedicated landing page. (If you choose to create a landing page, follow best SEO practices to attract organic search traffic as well.) Include your lead magnet’s value proposition and a strong call to action (CTA). Once your lead magnet is live, promote it by sharing links on social media.
Decide how to distribute your content. For example, you can deliver written content via email, distribute it with a download code, or host video lead magnets on password-protected websites. Consider redirecting customers to a thank you page after they submit the form, and include information about how to receive the incentive.
4. Nurture your leads
Develop a plan to convert warm leads into paying customers. Send an onboarding email to new subscribers or follow up with a phone call to explain your services. Staying in contact with leads helps build lasting relationships. Use additional customer details collected during the lead capture process to target individual customer segments with tailored messaging.
5. Monitor and optimize
Monitor your lead magnet’s success and identify opportunities for improvement. Keep track of key details such as your lead conversion rate and the conversion path. Consider using A/B testing tools to test out different CTAs and incentives. Update your lead magnet content regularly to ensure that it stays relevant and aligns with your audience’s needs.
Lead magnet FAQ
Are lead magnets worth it?
Over time, a good lead magnet can help your business increase sales. Offering an incentive in exchange for contact details can help attract leads and build a subscriber base. Creating lead magnets can be time-consuming, however. To get the most out of great lead magnets, offer a high-value resource, implement a smooth lead capture process, and nurture new leads.
What is another name for a lead magnet?
Lead magnets are also referred to as opt-in incentives, sign-up incentives, or gated content. All of these terms describe a similar concept: offering a free resource as an incentive to generate leads.
What are examples of lead magnets?
Popular lead magnets include educational materials like a free ebook or online course, product discounts, and other perks like free workshops and seminars.
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Credit: Original article published here.