Optimizing Lead Generation - What's the Payback?

A dilemma faced by many senior executives is whether to put more money into sales or into marketing. Often, they feel it is better to hire more sales people to increase sales than investing more money into lead generation programs.

Contrarily, my research shows that for the complex sale, it is far more effective to support proven sales people with good lead generation than hiring additional sales people.

A new white paper by CSO Insights supports my research and shows that companies that support their sales teams with lead generation programs have higher conversion rates and increased sales effectiveness than those who don't.

I interviewed Barry Trailer, Partner of CSO Insights about their White Paper, "Optimizing Lead Generation - What's the Payback?" He said, "Our findings support that improved lead generation positively impacts sales team effectiveness and revenue.  When companies increase the quantity and quality of their leads, they increase the odds of winning sales." 

Among other things, CSO Insights data from 1,275 companies shows that those excelling in lead generation gain the following advantages over companies that do not:

• Win rates are 7 percent higher
• Number of sales representatives making quota is 9.3 percent higher
• Conversion rate from leads to first calls is 16.5 percent higher
• More than 10 percent decrease in ramp up time for new sales people

I expect there will be more research on this very important subject. 

Above the Sales Funnel by CSO Insights

Comments

[Robert Rosenthal]

In the competition between marketing and sales for budget dollars, the outcome often has little or nothing to do with real profits. Sales often has the upper hand because they know how much money successful sales reps produce. Until b-to-b marketers track campaigns to the ROI level, they'll be at a disadvantage.

[Buzzoodle Ron]

Congratulations on your nomination for MarketingSherpa Reader's Choice Blog & Podcasting Awards 2006. Nice blog. Best of luck.

Ron