As B2B marketers, we have to gather customer information day in and out through our marketing campaigns, from calls to traditional and digital marketing practices. And as marketers, growing our number of leads remain top-of-mind, and we want to do it fast to get ahead of the competition. Getting your hands on B2B leads by purchasing them may be the most convenient option but is it worth it?
Let’s take a look on why purchased B2B leads will be a waste of money, and why you should be experimenting on your own customer list instead.
1 – Outdated Leads. There would be an amount of leads from any purchased lists that need updating. Utilizing dormant leads will only harm your company as this will affect the effectiveness of your marketing campaigns. It will also reflect on your segmentation initiatives when someone may have long changed their business information. You don’t want to send an email to someone who changed his country from the USA to the UK as there are attached email marketing regulations with that.
2 – Higher unsubscribe rate, more spam reports. When doing email marketing, it is best practice to have an opt-in or subscription process. In this way, you get the consent of your audience that they want to receive your communications. Otherwise, when you send out unsolicited emails, this will result to a higher opt-out rate, more spam complaints, and, worst case scenario, you get fined for not getting the contacts’ consent.
3 – Penalties. Non-compliance to policies on email marketing can get you blacklisted from sending out email marketing campaigns.
- Controlling the Assault of Non-Solicited Pornography And Marketing (USA). Otherwise known as CAN-SPAM Act is a policy enacted in 2004 to provide consumers protection from malicious and inappropriate commercial messages. Violators can be fined of up to US $16,000 per email and may be subject to imprisonment.
- Canada’s Anti-Spam Law. CASL mandates that any company or organization must get the consent of their contacts before including them in any email marketing campaign. Companies must also include business information such as Business Name, Postal Address, and an option to unsubscribe from the mailing list. Fines per violation can range from $1-$10 million.
- General Data Protection Regulation (Europe). Europe’s new privacy law requires the explicit statement, such as checkbox options found in lead forms, of a European citizen’s consent to subscribe from any company. In return, the company must inform these subscribers on how their personal details will be used – say, indicate if they are going to be profiled under a categorized customer preference. Ignorance to this rules is subject to penalties – either €20 Million or 4% of an organization’s total annual revenue, whichever is higher.
4 – Compromised email deliverability. Purchased leads do not give you an assurance that these leads are updated or if they are still existing. Good for you if you have obtained a decent quality list, but what if there are contacts that will be marked as hard bounces? Chances are these hard bouncebacks will be marked as spam by companies especially if they are triggered through a batch send. Usually, organizations setup a honeypot configuration in their systems which acts as a spam trap. Once this analyzes your IP address as a spam source, it is most likely that your emails will go right straight to your audience’s spam folder – making a negative impact on your email deliverability score and IP reputation.
5 – ESPs won’t allow you to send out to purchased lists. In order to maintain valued contacts, reliable email service providers (ESP) have their own anti-spam regulations. Similar to state policies, contacts must explicitly inform the organization that they want to receive communications from the company.
6 – Segmentation. Some may argue that purchasing B2B leads can do well when it comes to creating segments as it has a broader range of contacts, but it would be a better initiative if you start building your contacts database from your previous customers who have actually purchased from you. Despite being time-consuming, it will help in consolidating good quality contacts, and establishing brand reputation in the long run.
7 – Quality leads are not for sale. Companies and organizations won’t normally share their resources to anyone – what more for their contacts database that has good quality and are updated?
8 – Bad email marketing reputation. If you want to uphold a good reputation in your industry, and reliability for your customers, reconsider buying leads. This will avoid you from being tagged as a spammer.
9 – Building lists starting from your customers is a much better option. Effective marketing starts with having quality customers who have exhibited interest in your company. From there, send them nurture emails, monitor your metrics, and be constantly in touch with them through your communications. You may also want to leverage on the customer information that you have gathered from other marketing channels such as webinars, social media, and events.
10 – Promote your content and solutions. One of the best practices in email marketing is initiating campaigns that have gated forms. These are forms that ask about your customer’s details before they download any content that you are promoting. In this way, you can efficiently offer your company’s solutions through marketing collaterals such as brochures, while augmenting them with lead forms.
11 – Waste of resources. Ineffective campaigns, heightened penalties due to spam complaints, and bad industry reputation are some of the consequences of purchasing an outdated B2B leads list. You may not only be wasting your time and effort in looking for viable purchased list, but it can also add up to your expenses in the long run when you can already be developing your audiences list.
Purchased contacts list may present convenience and easier access to potential audiences, any business must take a look first on the pros and cons in doing so. It is also worth looking at considering to invest in building your contacts database from customers and prospects that may have accessed any of your digital platforms – from social media to web searches. Although tedious, you can save your budget and allocate more of them on more viable lead generation campaigns.
Vsynergize is your one-stop destination for getting closer to your potential leads. Thanks to our telemarketing, appointment setting, and content syndication. Get in touch with us now and knock the door of endless opportunities.