The Power of Email Lead Generation for Small Businesses

Li Ramos
Li Ramos
Published: Jan 23, 2023
Last updated: Jan 23, 2023
10 min read
email lead generation

Email may be one of the oldest forms of online communication but it’s also one of the most effective ways to connect with prospects, especially for small business lead generation.

In fact, 64% of SMEs use email to reach potential customers since 99% of them check their inboxes daily and some even do it 20 times a day!

Email lead generation is the means of using email marketing to get email addresses from potential clients and send targeted messages to them. It’s a low-cost and effective tool for any business looking to reach new customers and drive sales.

Discover the power of generating leads for email marketing for small businesses! Read on how to get email leads, along with some tips and best practices to help you effectively use this strategy for your business.

Key Takeaways:

  • Email lead generation is the means of using email marketing to the contact details of people who fit your ideal customer profile and send targeted messages to them.
  • You can get emailing leads by using landing pages, website opt-ins, social media, paid ads, live events, partnerships, and outsourcing.
  • Email is a powerful tool for small business lead generation because it’s a highly effective but cheap way to reach your target audience and boost sales.
  • While you may think that only large companies get outsourced lead generation services, small businesses can benefit from it since you get expert help that’s cost-saving and efficient.


How Does Email Marketing Lead Generation Work?

Email marketing lead generation is the process of getting email addresses from people who fit your ideal customer profile. It uses email marketing techniques to capture contact details of potential customers, reach out to them, and possibly start their buyer’s journey.

The main goal of this lead generation strategy is to build an email list that is then used to send targeted marketing messages and encourage recipients to take a specific action.

How to Get Email Leads for Your Business

how to get email leads

For small businesses, email lead generation can drive sales and grow their ventures. There are many ways to get emailing leads for your business:

1. Landing pages

Build a dedicated landing page that has a form for visitors to sign up for your email list. To motivate them to sign up, you can offer an incentive such as a free resource, a free trial of your product or service, or a discount code.

2. Website opt-ins

Add opt-in forms on your website, blog, or social media pages to get email leads. In exchange for their contact details, create a lead magnet such as a newsletter, white papers, or other valuable content.

3. Social media

Integrate your social media pages and email to make it easy for people to sign up. Build an online presence on platforms such as Facebook, LinkedIn, and Twitter to promote your lead generation email list.

social media

4. Paid ads

Use online advertising platforms such as Google Ads and Facebook Ads to target specific demographics and get qualified leads. You can use these ads to drive traffic to your landing page and capture their email addresses.

5. Webinars and live events

Host webinars, trade shows, networking events, and other in-person or online gatherings related to your niche. Let participants sign up for these events so you can collect emailing leads and their email addresses.

6. Partnerships and collaborations

Use your personal network and partner with other companies related to your business to promote your email list. One of the best small business lead generation techniques is to collaborate with influencers. Find relevant micro-influencers in your niche to drive their own followers to your email list.

small business lead generation

7. Outsourced lead generation services

You can buy email lists from lead generation solutions companies that specialize in collecting such data. There are also outsourcing companies that offer online lead generation services ranging from email to cold calling so you don’t have to worry about getting leads or even reaching out to them.

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Why Email is Powerful for Small Business Lead Generation

Email lead generation is a powerful tool for small businesses because it’s a highly effective but cheap way to reach your target audience and boost sales. To be more precise, the top reasons why email is powerful for small business lead generation include:

1. High audience reach

As of 2020, there are about 4 billion email users in the world with an annual growth rate forecast of 3%. This means that by 2024, there will be about 4.5 billion email users! In the US, over 60% of promotional emails are read, especially messages about discounts and other offers.

With these numbers, email marketing lead generation is a quick and easy way to reach a wide audience. A high audience reach also means you can create customer segments such as demography, psychography, behavior, and geography.

2. Targeted messaging

When you segment your audience, you can then send targeted messages based on their interests and behaviors. Sending customized emails to qualified leads can make your marketing efforts more effective and improve your conversion rates.

target audience

3. Cost-effectiveness

Lead generation emails are generally less expensive than other forms of marketing. It’s one of the best lead generation strategies for small businesses, especially those with limited budgets.

The average cost per lead (CPL) for small businesses tends to be higher than for larger firms. It can also widely differ based on the industry, target market, and channel used. For email marketing, the projected 2023 average CPL is $53.

To calculate the CPL, you can follow this formula:

cost per lead

You can also use online CPL calculators such as Integrately, Yespo, and Stripo to save time and get accurate data.

4. Measurable results

Having a measurable campaign means it can be repeated, improved, and/or scaled in the future which is a crucial factor for small business lead generation. It gives way to the most effective lead generation strategies that maximize the time, money, and effort your business spends.

Keep track and analyze key metrics of email marketing such as open rates, click-through rates, and conversions. This lets you see what works and what doesn’t and use a data-driven approach to optimize your campaigns and improve your results over time.

5. Better customer relationships

By regularly communicating with your lead generation email list, you can build stronger relationships with your current and potential customers. This will improve customer loyalty which leads to increased sales.

email campaigns for lead generation

With a better customer relationship, you can also generate qualified leads from your clients. As loyal customers, they can be ambassadors for your brand and promote your business to their personal network. You can also reach out to them and ask for referrals to get more leads.

Email Lead Generation Best Practices to Boost its Effectiveness

To reap the benefits of email lead generation, you need to have a robust campaign for your small business. Optimize your email campaigns for lead generation and get the best results with these proven tips:

email lead generation best practices

1. Segment your lead generation email list

Dividing your emailing leads into smaller groups based on a certain factor will make better use of your resources and boost the relevance of your lead generation emails. You can segment your email list into different models such as:

  • Behavioral
  • Demographic
  • Psychographic
  • Geographic
  • Technographic
  • Needs-based
  • Value-based

This allows you to target a certain group of people with a specific message relevant to them which can increase engagement. Prospects will also be more likely to convert into sales or any other action you want them to take.

2. Write strong email subject lines

The first thing recipients will see when they get your email is your subject line. That’s why it’s crucial to grab their attention right at the beginning. Make your subject line engaging and compelling by using actionable language. This will boost the chances of recipients opening your lead generation email.

3. Personalize your message

One of the easiest email lead generation best practices is personalization. People are more likely to be engaged with your message if it feels like you’re talking to them, especially if you’re talking about something you can help them with.

generating leads for email marketing

You can also use your emailing leads’ names, locations, or other relevant information to make your emails feel more personal.

4. Offer valuable content and incentives

Consumers are always looking for a deal. Valuable content and incentives are more likely to motivate people to sign up for your email list.

Resources, templates and tools, white papers, exclusive promos and discounts, and the like will give potential customers a reason to opt in and keep getting emails from your small business lead generation campaigns.

5. Test and optimize lead generation emails

Make sure that you create the best email lead generation campaign for your business by using A/B testing. This allows you to try different versions of your lead generation emails and see which ones work best. This way, you can optimize them for maximum effectiveness.

6. Outsource to lead generation services

Make the most out of your lead generation strategies by outsourcing. Business lead generation services will take over generating interest among potential customers so you can focus on closing sales. Some of the services they can handle include:

outsource lead generation

  • Email marketing
  • Cold calling
  • Networking
  • Social media marketing

While you may think that only large companies outsource such services, small businesses can take advantage of this opportunity as well. Outsourced lead generation services are a cost-saving and efficient way to drive up your sales with the assurance that trained and experienced remote workers are handling your tasks.

Add Magic to Your Small Business Lead Generation Strategies

As your small business grows, so does your to-do list. Be on top of your tasks from small business lead generation to customer support with Magic.

Get a flexible remote workforce to handle a wide range of sales tasks for your business including but not limited to:

Grow and scale your small business as you see fit with Magic! With outsourced lead generation services and more, you can focus on what matters most and boost sales. Book a call with us now to know how we can help.

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