B2B Demand Generation – Cold Calling is Not Dead but You Need To Be Smarter!
We get asked all the time “Is cold calling dead?” for B2B demand generation and lead generation. The answer is a definitive no! However cold calling (aka telemarketing lead generation) is not as cost effective as it once was. Telemarketing lead generation in isolation is a risky bet. This blog addresses how as a B2B Demand Generation company and sales process consulting firm we have had to shift our approach to outbound cold calling and B2B lead generation. Here is what the numbers tell us:
- On the down side…In 2011 our average call (time a rep picks up the phone) to connect (times a decision maker picks up the phone) ratio was between 7% -16% (depending on the Industry). In 2008 it was between 12% – 21% (once again depending on the Industry). Calls to connect are 30% to 50% less effective getting someone on the phone. This is driven in part by better screening technology but it is primarily driven that with downsizing there are less decision makers, doing more work so they have less time to pick up the phone.
- In 2011 our average call to meaning full conversation is unchanged and prospects willing to accept information has slightly increased 0.5%. In 2011 our calls to conversions into a Sales Accepted Lead is only down 2%-4%. Sales Accepted Lead to Sales Qualified Lead is virtually unchanged although they take about a month to a quarter longer to move. What this tells us is that cold calling is still effective when your call is picked up. And once you connect you patiently stay on top of the lead systematically.
To our mind there is no better way to target your ideal customer if you are convinced your product or solution will meet their needs because you get to decide specifically who to target.
What to Do:
It all comes down to maximizing the efficiency of your more senior reps by being smart. Here are a handful of increasing the success of your outbound B2B demand generation efforts.
- You need to build and ideal customer profile prior to purchasing a list. Garbage in means garbage out. Support your B2B lead gen reps.
- Spend a little more money on your lists and spend time scrubbing your list.
- Craft a solid voice mail pitch with a compelling offer for your B2B lead gen reps to push.
- Put a junior resource on new lists to verify phone number and direct lines. Leverage content as a surrogate for domain expertise and your senior sales reps.
- Automate your sales follow up with a drip marketing campaign. You are paying good money so nurture what you have. B2B demand generation requires nurturing to maximize your investment
What to Avoid:
- Forget to follow up with your existing warm pipe
- Not measuring the production or non-production of every cold call your B2B lead generation rep makes
- Holding your B2B lead generation reps accountable for daily, weekly and monthly lead gen call volume targets
- Rewarding your outbound lead gen team for anything but Sales Qualified Leads.
- Not following up with additional educational content
If you have any questions or feel like a conversation makes sense to learn how Gabriel Sales can help you pull together a more effective demand generation program whether you are mid cycle or building a new effort feel free to CONTACT US.
For a quick look at what a B2B demand generation engine looks like to get a sense if you could benefit from some quick sales and marketing automation process consulting we invite to CLICK HERE you to check out our short 4 minute video.