5 Problems Digital Lead Generation Solves
March 6, 2022
What is lead generation?
Lead generation is the marketing process of stimulating and capturing interest in a product or service for the purpose of developing a sales pipeline. Lead generation can be useful for any type or size of business, and for both B2C and B2B spaces. Sixty percent of marketers state that lead generation is a key pain point for their company.
Determining a good lead is more complex than just targeting people who are interested in your product or services, and it’s important that the salesperson follow up and have a good system of contacting the leads in order to ensure the best results possible. When you implement a lead generation program, you increase brand awareness, build relationships, generate qualified leads, and ultimately close deals.
The higher quality leads you direct your sales team to, the more of those leads will result in sales.
While generating high-quality leads is important, it is also crucial that a company generates leads at a low cost. Many companies struggle to get a huge volume of leads due to the high cost per lead, hence their number of sales closed will also be largely affected.
Take for example, Company A is able to generate leads at $5 per lead, while Company B is able to generate leads at $20 cost per lead. Assuming that each company spends $1000 in generating these leads: Company A would have 200 leads while Company B would only have 50 leads. Let’s say each company is able to have the same closing rate at 20%, Company A would have closed 20 sales while Company would only have closed 10. A difference in cost per lead can severely affect the number of sales closed and the revenue for a company.
Hence it is absolutely crucial for companies to get a lower cost per lead, without compromising on the lead quality.
Lead generation through digital marketing
Typically, we generate leads through digital means. Using advertising platforms such as Facebook, Google Ads or Tiktok, we are able to generate leads at a large volume. Furthermore, these platforms have their own special algorithm and analytics that is able to help us identify our target audience. However, it is up to the marketers to target these audience correctly and achieve the best lead quality for the lowest cost.
Common problems that lead generation can solve
Simple batch and blast advertising don’t appeal to the self-directed buyer, and having a solid lead generation program in place can help you navigate the new complexity surrounding lead generation. Below are a few problems lead generation can help solve.
Digital marketing benefits: Lead generation, trackable results, branding, growth in sales
Problem: I need to generate a high volume of leads
If you’re just starting out, a lead generation program can result in increased brand awareness, new relationships, higher quality leads, and more sales. If you’re looking to optimize an existing program, you may want to reevaluate your audience profiles, buyer journey, channels, and tactics. Keep your goals, customer concerns, and challenges in mind, deliver content that solves their pain points, and keep nurturing those relationships—soon you’ll have a funnel filled with qualified leads.
Furthermore, optimizing your Ads to produce the cheapest cost per lead also can help you maximize your Ad spend to generate a huge volume of leads at a low cost.
Problem: My sales team says that I’m not delivering high-quality leads
There are several reasons why your sales team is struggling to convert leads into customers. First, sales and marketing should be in agreement about what constitutes a qualified lead, and when that lead should be handed off, keeping in mind that 96% of people visiting your website aren’t ready to buy yet. Sometimes when salespeople contact the leads, they may feel put off—(buyers today do not want to feel sold to).
Hence, salespeople may want to contact lead in a less “salesman” method, but instead, try different methods to contact the leads. Follow-up is also extremely important in getting a sale closed. Having a strong system for the follow-up to a lead will help increase overall sales.
Here are just some statistics that might interest you:
- 95% of all converted leads are reached by the sixth call attempt (source).
- 44% of salespeople give up after one follow-up attempt (source).
- 92% of salespeople give up after no sales on the 4th call. 60% of customers say no four times before saying yes (source).
- 50% of buyers choose the vendor that responds first (source).
- On average, it takes 8 follow-up calls to reach a prospect.
Lead quality is important, but it’s a major challenge for marketers, so it may take some time to start bringing in qualified leads.
Problem: I’m bringing in leads, but don’t have a strategy around what to do next
Generating leads is just one part of lead generation. Once the leads are coming in, there needs to be a system of follow-up. Whereby, a sales team or system is able to make good first contact with the lead. (First impressions matter and they last.) Try a different approach when contacting the leads to optimize the closing rate for the leads.
According to Forrester, buyers might be anywhere from 75 to 90% of the way through their buying journey before they contact the vendor, after they’ve completed their own research. Hence, it takes a bit of follow-up to actually close a sale.
Problem: I need to be able to demonstrate the return on investment (ROI) of my marketing team
To show the impact of your marketing team, you’ll need to plan out a strategy and determine what to measure, when to measure, and how to measure. Choose metrics that show how marketing is increasing effectiveness across the board, generating qualified leads, amplifying sales pipeline velocity, and improving sales and marketing alignment through leveraging lead generation software.
Problem: My lead generation program isn’t working anymore
If your lead generation strategy has yet to catch up to the age of the self-directed buyer, it’s time to reevaluate. Using modern lead generation software can help leads find you by increasing brand visibility and capturing interest with informational content buyers can use during their own research before they’re ready to purchase.
While lead generation is important for companies, it is also vital to have a supporting sales team to be on the same page to be able to close the lead properly. Having a lead generation system combined with a great sales closing system will create the most value in any company or collaboration. Lead generation can grow revenue in any size company if implemented correctly. Revenue in mature companies grows by an average of 174% by executing great lead generation strategies.
In certain situations, it can be wiser to engage an agency specializing in lead generation to help cut costs and tap on the expertise of professional lead generators to yield the best lead quality at the lowest cost.
If you are looking for a better solution, contact us to discuss about your lead generation needs today.