Everybody wants more leads.
In a recent marketing survey from BuyerZone, it was found that 56% of B2B companies strongly disagree with the statement that they’re getting enough leads. The same survey found that 45% of B2B companies have been increasing their lead generation budget year after year.
There are several reasons why this is happening. The first is that cold calling is about half as effective as it used to be, with call-to-connect ratios dropping by 50% or more in recent years. Cold calling still works for lead gen, but it costs twice as much to achieve the same results. Another reason many B2B companies think they need more leads is that they don’t have a system in place to effectively work and manage the leads that they already have.
The BuyerZone survey found some interesting relationships between B2B companies’ use of technology and their perception of lead volume and quality:
“B2B marketers who agree with the statement that the leads they receive are of reasonable quality are:
- More likely to be using a CRM (89%)
- Use marketing automation (53%)
- Have an understanding that they’re getting enough leads (53%)
Compare that to those who disagree that the leads they receive are of high quality and you see that only:
- 78% use a CRM system
- 29% use marketing automation
- More than 90% are adamant that they are not getting enough leads”
Looking at the data, it seems many that companies that use a CRM in conjunction with a marketing automation system receive higher quality leads and therefore feel that they need less of them to be successful. Conversely, companies that feel they do not have the lead volume or lead quality they need are much less likely to use both a CRM and marketing automation platform in their lead generation efforts.
To us, this makes a lot of sense. If a company does not have a CRM and/or marketing automation system, they likely are not tracking their leads or nurturing them in any way. With no visibility into their leads’ web activity and engagement with their marketing content, how would these companies know whether or not they have enough leads or what quality they are?
The lesson to be learned? BuyerZone explains:
“In a nutshell, while the cost of CRM and/or Marketing Automation isn’t insignificant, it might end up saving companies money in the end.”
By leveraging the right technologies, you can eliminate the constant lead quantity problem by replacing it with a solution that improves lead quality. This way, you can stop spending more and more on lead generation and can instead focus resources on nurturing leads you actually know are interested.
To learn more about sales pipeline management and lead nurturing with the use of marketing technologies, read “An Alternative to Getting More Leads in 2014”. Feel free to contact us with any questions.