The history of commerce tells us that the more we buy, the cheaper each of those purchased items should be. Big box stores continue to lure and train customers to expect to pay less per-unit if they buy more. While stores can do this because their cost per unit lowers through economies of scale, the economies of lead generation services do not usually follow a similar pattern.
The true definition of a qualified lead is one that is “actionable”, so a qualified B2B lead can be used to start a meaningful dialogue with a potential customer, but the differentiator is that it has a far greater chance of resulting in a sales conversion. That’s because the type of sale involves a longer sales cycle, a deeper level of engagement, and more frequent touchpoints.
You’ll know you have hit the cost-per-lead ‘sweet spot’ when you can scale the number of leads without significantly increasing the cost for each lead. It’s in this sweet spot that the number of leads you are purchasing directly matches the current available demand. Similar to a mining operation where production reaches a constant flow and costs are stabilized; the sweet spot is achieved when the desire for your goods and services is matched by the ability to close new customers and deliver.
Why You Must Resist the Lure of Cheap Data
The temptation to purchase a high volume of leads at a small price, especially when your resources are limited may be overwhelming. But you must resist and here’s why: Cheap data is ultimately expensive.
If that sounds backwards, think about it. If the leads you are getting ultimately result in a lot of unexpected effort (what we often call human touch time), you’re losing money. It costs more than a lead that’s pre-qualified and ready to go; simply because your sales team is spending more time than they should to convert that lead. It’s easy for vendors to promise “leads” for less because analytics and data gathering techniques are so advanced. What is not easy is the process of sifting the grain from the chaff and finding true leads. While analytics and Big Data are buzz words, there is nothing quite like your own, homegrown database with intelligent, predictive analytics, keenly studied, well understood and then used as the basis of your B2B lead generation strategy. Even better if your lead generation program offers 360° visibility!
Some tried and true methods don’t need to change because they still work. Here are 7 B2B Lead Generation Tactics that Still Work.
But also remember that there is no reason to continue doing things the way you have always done if it doesn’t yield the right results. Download Your B2B Demand Generation Detox Diet today.
Marketing managers and business owners need to realize that the cost of each lead is not merely the expense that you paid to get it in your hands. The full cost of each lead is the combined expense for the efforts required to nurture that lead and progress it towards a sale. The total cost must take into account the amount of time it takes your sales team or channel partner to engage those leads, nurture them the right way, and convert them into sales.
It’s important, therefore, to really examine the data around your leads. Do this with the purpose of discovering whether you are giving your sales team everything they need to manage their resources and their time well. Only then will they be able to convert qualified leads and grow your business.
Are you paying too much or too little for your B2B lead generation services? How do you measure return on investment? What metrics are you using to monitor the effectiveness of your lead generation strategy? Join this exclusive, B2B LinkedIn Group to exchange notes with thought leaders in the industry.
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This article was syndicated from Business 2 Community: Cost Of B2B Lead Generation Services —Why Do They Vary So Dramatically?
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