Lead Generation 2.0: Part 3, The Sales Lead Paradox: Less Is More
There is a counter-intuitive relationship between lead volume and sales performance.
First, a context: today's economy is not being kind to sales professionals. Buyers are taking the initiative to educate themselves, holding onto cash and making purchasing decisions more slowly. Indeed, OneSource's 2010 B2B Sales Pulse Survey notes that 59% of sales professionals report current sales cycles are either significantly longer or somewhat longer than last year.
Conventional wisdom: more leads = more sales
With sales organizations facing lower numbers, it seems logical to turn to volume lead generation to fill their pipelines with more and more sales leads in hopes that some will turn into sales. After all, shouldn't more leads deliver more opportunities?
In reality, just the opposite often turns out to be true. Standard lead generation's focus on quantity—rather than quality—results in the following:
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The pipeline is flooded with a high volume of low-value leads.
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Qualifying criteria are rarely met due to lack of marketing resources.
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Sales reps' calendars are cluttered with unqualified meetings.
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Money is wasted on sales lead generation programs that don't work.
Downsides of a high-volume approach are widespread. A 2009 CSO Insights survey reported that senior sales executives rate just 35 percent of leads as "good" or "excellent," and 65 percent as "average" or "poor". And only 26 percent of sales executives surveyed were satisfied with the quality of leads received.
The sales lead paradox: fewer leads = more sales
The answer? Sales reps don't need more marketing leads. They need fewer sales leads—or more accurately, fewer raw, unfiltered, unqualified marketing leads. Conversely, they need leads that have been carefully qualified, properly and consistently nurtured and appropriately developed, increasing the likelihood of a completed sale.
By focusing sales resources on a smaller number of better quality leads, they can focus their time more effectively on the most likely buyers. Such a practice makes sense in any economic climate, but in our current market downturn it can be a way to actually improve efficiency and do more with fewer resources. This also renews the value of lead generation programs, since reps start receiving leads they can actually use.
Best-of-class prospect development—and its focus on fewer, higher qualified sales leads—fills forecasts with sales-ready buyers and helps marketing and sales resources operate more efficiently. In the end, it means great return on program investments and higher company revenue.
If you'd like to learn more about how fewer, yet better qualified, leads can empower sales, download the white paper, Why Your Sales Force Needs Fewer Marketing Leads.