Generating inward investment leads is a key step towards landing investment projects - and databases of businesses and decision makers are often sold as a basis for producing lead lists. But using business databases to produce lists of 'investment leads' has always been problematic.
The old problems of databases and bought 'lead lists' in inward investment attraction
1) Profile fit ≠ strategic fit.
In the worst cases, lists are supplied of businesses with particular profiles (e.g. industry sector specialisations), on the basis that they align with the strengths of the client's location (e.g. in the same industry sector).
But a profile fit is a long way from being a strategic fit - and real potential to invest. The companies on the list might, for example, have no current investment projects, and no interest in, or strategic case for, expanding in the location in question.
2) Why invest here?
In slightly better cases, companies on the 'lead list' may be known to have current investment projects, but still wouldn't pass the key test that would make them real inward investment prospects for this particular location.
Why, for example, would Company X from California suddenly have a strategic case for expanding in a specific, previously unknown UK regional location, based on a speculative approach?
3) More targeted and cost-effective alternatives.
The best scenario, of course, is when the market intelligence is sufficiently robust to identify targeted companies, with investment projects, and specific reasons why the location being promoted is genuinely relevant, attractive and viable for them.
But this viability is often based on established links to the location (e.g. supply chain, R&D or industry network relationships) and may even involve potential reinvestment in existing operations.
Investment promotion agencies can, therefore, potentially achieve the best marketing and lead generation ROI by leveraging their own industry sector networks, beginning with robust regional industry cluster relationships, instead of buying expensive lists of 'investment leads' based in far-off locations.
(Clarity's experience of strategically leveraging regional networks to generate leads, leading to high-value investment projects, stands as testament to the effectiveness of this approach).
4) Inaccurate, out-of-date information.
Business databases and 'lead lists' derived from them are also often inaccurate and out of date.
Businesses change their names, merge or simply cease to exist. And their leaders frequently move or change roles. Following up 'lead lists' can, therefore, sometimes feel like chasing ghosts.
So, databases are problematic. But just imagine if this had happened:
1) Some bright sparks decided to create the world's biggest B2B professional database - with more than a billion profiles1 - and kept it online to be accessible to everyone.
2) And they integrated this database with a business networking and content sharing platform, so everyone on it could communicate and share relevant insights with each other.
3) And they did all this well enough to encourage senior business decision makers to use it - actively, frequently, and seriously.
4) And, as well as being the biggest, it also became the most accurate and reliable database of its type, because business users had an incentive to keep their profiles up to date - for networking and career development purposes.
5) And because its algorithm focused on 'connecting its users with only the most relevant professional advice and expertise',2 it could be used effectively to share specific, valuable insights (e.g. your business location's unique benefits) to targeted audience segments (e.g. specific industry sectors, starting with your regional networks), as a means of attracting companies with real, viable investment projects, and real interest in your location, back to you (thereby addressing the lead generation challenges described above, including 'why invest here?').
Then imagine if this happened:
1) In the vast majority of cases, this hugely powerful, segmentable, senior-level, up-to-date database, including real potential inward investors, was mistaken for Facebook.
Because, on the surface, it was a social media platform, and because its algorithm - which prioritises content that 'shares knowledge, advice or insights'2 - wasn't widely understood.
2) And because it was used in the way most people use Facebook, the content shared on it was, often, untargeted, uninsightful, and in a 'PR' style - involving organisations talking about themselves rather than providing location insights (valuable information and data) that would appeal to both their target investor audiences and the algorithm.
So opportunities were missed to project valuable location solutions into targeted business networks, as a means of attracting real investment leads.
None of which is actually imaginary
A) This uniquely powerful B2B database of business decision makers exists, and could well be how you accessed this article.
B) And as part of an integrated, 'inbound' inward investment marketing strategy, it can be one of the most effective means at you're disposal of reaching real, potential inward investors, and attracting them back to you.
C) I am of course talking about LinkedIn. The key to success is learning how to use it expertly, in areas including: gathering market intelligence; segmenting target audiences; proactively building networks; and creating and sharing insightful, targeted content about your location proposition; as well as the practicalities of using the platform's advanced marketing features to their full potential.
Above all, it's about treating LinkedIn with the seriousness it deserves - as the world's most powerful and usable B2B professional database, that includes key decision makers within targeted investing businesses.
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Sources: [1] LinkedIn, 2024; [2] Hootsuite, 2023
