HPM Receives ‘Best of Business’ Award - 1262753160
Small-business group recognizes agency’s innovation in generating leads for clients
PHOENIX (Jan. 5, 2010) — The Small Business Commerce Association (SBCA), a San Francisco-based group that offers tactical guidance to small-business owners, has recognized Phoenix-based Higher Power Marketing (HPM), a leading innovator in the per-inquiry (PI) advertising business, with its 2009 Best of Business Award in the marketing consulting services category.
“Other agencies come to us for our perspective on utilizing technology,” says HPM President and CEO Peter Feinstein. “We invest a majority of the company’s capital developing and implementing useful technology; I think some see us as the leader in technology and the leader in media partnerships. I believe this award is in recognition of that leadership.”
A PI campaign places ads at no charge to the client; instead, the client pays for responses. HPM has relationships with media outlets across the country and access to their unsold inventories of ad space or time. It places a client’s ad in those spots until an agreed-upon number of responses is reached. This allows the client to establish a stable, predictable cost per lead (CPL) without the burdensome and unpredictable expense usually associated with buying advertising.
HPM’s emphasis on results appeals to clients who care about how well their advertising works, not necessarily when or where it runs. Feinstein says companies are accustomed to paying more for advertising because they divide the cost of expensive airtime or print space by the number of customer responses and arrive at a de facto cost per lead. HPM’s methodology flips the paradigm, starting with a static cost per lead or sale. The real emphasis is on lead generation – filling client pipelines.
“We have converted three of HPM’s former per-sale clients in the last 90 days to lead generation – cost per call – and they are seeing all the benefits that we’d described to them. It’s working out, far and away, to everyone’s benefit because we’re filling their sales pipelines with many more leads,” Feinstein says. “We’re able to do that because our media partners are much more interested in running cost-per-call offers than per-order or per-sale programs. With increased media support comes increased consumer response.”
Packages can be structured for a variety of results ¬– per inquiry (any response), per lead (name and contact information) and even per sale. But Feinstein says HPM’s media partners – which include national cable systems, large radio networks, a variety of satellite TV properties and fairly extensive newspaper and magazine networks – prefer to be paid for leads, or better yet, calls. “They don’t like being held responsible for a call center or Web page’s ability to close a sale,” he says. With the focus on lead-generation, “The client makes money; the media partner makes money; and we make money,” Feinstein says. “Everybody wins.”
The SBCA award program recognizes the top 5 percent of small businesses throughout the country. Using various means of research, including consumer feedback, the SBCA identifies companies that it believes have demonstrated what makes small businesses a vital part of the American economy. The selection committee chooses the award winners from nominees based upon information taken from monthly surveys administered by the SBCA, a review of consumer rankings, and other consumer reports. Award winners are valuable assets to their communities and exemplify what makes small businesses great.