Two Keys to More Effective Marketing in 2014 - Part 1

Two years ago this month, I published a post here titled Five Ways to Improve Your Marketing in 2012. With the end of 2013 now only a month away, I thought it would be a good time to revisit this topic with 2014 in mind. How much of what I wrote in 2011 is still relevant, and what would I change about (or add to) my 2011 post.

In my earlier post, I made five recommendations:

• Develop a marketing strategy
• Shift primary responsibility for lead generation from sales to marketing
• Increase the number of leads you acquire via inbound marketing
• Develop and implement a sound lead management process
• Implement a content marketing strategy

These recommendations are as valid today as they were two years ago, although I believe that the number of B2B companies using some or all of these practices has increased substantially over the past two years.

So, what are the most critical actions that B2B marketers should take in 2014 to boost marketing performance? There are several plausible answers to this question, but I suggest that two actions stand out in importance. In this post, I'll discuss why technology has become all but essential for effective B2B marketing in 2014, and my next post will describe how marketing content must change in 2014.

Why Marketing Technology is Essential

I don't write frequently in this blog about marketing technology for a couple of reasons. First, there are many other good sources of information on that topic. In addition, the hype surrounding marketing technology can easily create the erroneous impression that technology is a "silver bullet" that will automatically improve marketing and sales performance.

It's clear, however, that marketing and technology are deeply entwined and that it's now practically impossible to build and execute effective marketing programs without the use of technology. For example, unless you're working with a very small number of prospects, it's extremely difficult and highly inefficient to run sophisticated lead nurturing programs without the right technology tools.

B2B marketing automation (aka lead management) software enables companies to execute personalized and behavior-driven lead nurturing programs. These technologies also typically enable extensive data collection regarding lead behavior and the use of automated lead scoring systems. B2B marketing automation solutions are typically integrated with CRM solutions, and this combination of technologies can significantly improve the effectiveness and efficiency of both marketing and sales efforts.

The good news is, both marketing automation solutions and CRM solutions are now widely available as hosted solutions, they are relatively easy to use, and they are affordable for most B2B companies. These factors, combined with the pressing need to improve marketing performance, have made B2B marketing automation software extremely popular. David Raab, a widely-respected marketing automation industry analyst, estimates that revenues from the sale of B2B marketing automation software will reach $750 million in 2013, and the market has been growing at about 50% per year for the past several years.

If you don't have the internal skills needed to successfully implement a marketing automation solution, you should consider working with a marketing services firm that can use these technologies to execute marketing programs on your behalf.

Marketing technology is not a panacea, but it will be essential for effective B2B marketing in 2014.

Read Part 2 of the series here.

Five Myths Of B2B Lead Generation Campaigns

When promoting your business, you probably have tried out a variety of marketing tactics and strategies that you think will bring you the B2B leads that you need. Lucky for you if you succeed, but it would be a different story if it did not pan out. In any case, your aim here is to  ensure the overall success of your B2b lead generation campaign. And if you think that you know everything there is to proper marketing and appointment setting, well, you might want to think again. There is that high likelihood that you are basing your marketing efforts on myths. Honestly, that is the last thing you would want to experience in your business. So, what are these myths that you should know about?

First, some marketers believe that the customers care about your business. Renowned advertising executive and blogger Bob Hoffman has long disproven that. Customers do not care about you at all, they care about themselves. That is why they are your customers in the first place. If you think that all those sales leads nurturing that you are doing will get you the sale, you should reconsider that thinking. Chances are, you have lost the deal.

Second, you use the same message in different mediums. That is one mistake that you should never make. Yes, your message may be clear and concise, but how sure are you that it would be relayed right with different mediums? In the same manner that you do not use transfer a B2B telemarketing script to television, you should also craft your message according to the medium that you will be using. You have to be careful in that regard.

Third, you send the same message to all business prospects. This is one of the biggest no-no’s in the marketing field. Any sensible marketer will tell you that each prospect is different, and that requires a different manner to communicate with them. Some like it informal, while there are those who wish for a more formal approach. Others enjoy the conversation, while some might prefer going straight to the point. The trick here is in PERSONALIZATION. That will get you better results.

Fourth, you sound just too smart in your promotions. Yes, you want to say your entire piece to your sales leads prospects, but you would want to put your efforts on a leash if you notice that your prospect is losing interest in you. Match your wording and approach according to the person you are talking with. In this way, you not only personalize your marketing (which satisfies point number three), you also make your prospects think more on how you can help them (which point number one has mentioned).

Lastly, you think that B2B lead generation is easy. To be honest,it never was. Success can only be had through hard work and constancy of your efforts. This is the secret to generating customers for your business.

If you can correct your way of thinking, especially with regards to the above myths, then your B2B lead generation efforts will not go to waste.

Is Account-Based Marketing Right for Your Business?

One of the hot topics in B2B marketing circles today is account-based marketing (ABM). ITSMA (the Information Technology Services Marketing Association) led the development of account-based marketing about a decade ago. Although it started in the technology sector, ABM is now used by many kinds of B2B companies.

ITSMA defines account-based marketing as:  "A structured approach to developing and implementing highly customized marketing campaigns to markets of one, i.e. accounts, partners, or prospects." (emphasis added) By this definition, the distinguishing characteristic of account-based marketing is that it entails the development of a unique marketing strategy and communications program for each target account.

Recently, some marketing consultants and software companies have been arguing for a broader view of account-based marketing. For example, SiriusDecisions has identified four varieties of ABM - large-account marketing, named-account marketing, industry-account marketing, and customer marketing. For a description of these four varieties of ABM, read this post at the SiriusDecisions blog.

Firms that advocate the broader view use the term account-based marketing to describe marketing programs that focus on a specific group of named accounts, but do not necessarily involve the implementation of a unique marketing program for each target account. While these programs are often based on solid marketing principles and can be very effective, they are not true account-based marketing, at least in the original sense of the concept. In this post, I'm using the term account-based marketing as it was defined by ITSMA.

It's now clear that account-based marketing can be highly effective in the right circumstances, but is ABM right for your business?

Your answer to this question largely depends on the attributes of your universe of existing and potential customers. True account-based marketing is typically used only for very high-value customers and prospects because it's expensive to execute. For example:

• ABM requires both marketing and sales personnel to be deeply involved in the development and execution of each account plan.
• Many of the activities involved in ABM cannot be automated because they require the exercise of human judgment.
• Account-based marketing will usually require the development of unique marketing and sales content resources for each target account.

Because of the costs associated with account-based marketing, most companies that use ABM do so selectively. The diagram below illustrates how account value and the diversity of account needs influence which approach to marketing is most appropriate.

The lower left corner of the diagram represents accounts (existing customers and prospects) with relatively low value and relatively homogeneous needs. A mass marketing approach (i.e. "one size fits all") is probably most appropriate for this group of accounts. Note, however, that this group represents a small part of the total universe of accounts.

The top portion of the diagram represents very high-value accounts. These are the types of accounts that are suitable for account based marketing, even when their needs are fairly homogeneous. In most companies, these accounts also represent a fairly small portion of the total account universe.

As the diagram illustrates, targeted marketing (which may, in fact, focus on a specific group or set of named accounts) is the most appropriate marketing approach to use for most accounts. As I'm using the term, targeted marketing refers to the use of customized marketing messages for market segments and buyer personas, but not for individual accounts. When targeted marketing is done correctly, it enables a company to obtain many of the benefits of account-based marketing at a significantly lower cost.

So what's the bottom line? If you're a B2B company with a few existing customers who are "too big to lose," and/or if you can identify a small number of potential customers who would provide exceptionally high value to your company, then consider implementing account-based marketing for those selected accounts, and use targeted marketing programs for the rest.

Possible reasons why your Lead Generation numbers are not going up

There will always be times when your marketing efforts don’t produce the numbers you've expected. And in those times, it might be hard to shift focus away from failure and instead look at the reasons why it happened. Emotions can get in the way, and that prevents us from seeing things logically. B2B lead generation is one those fields where an element of “chance” is always a part of the game. Sometimes, campaigns fail because of things that are beyond your control, and there’s really nothing you could do about it.

What you can do, though, is to evaluate certainaspects of your efforts and see if they “contribute” to the occurrence of failure.

Below is a checklist that you might want to try for yourself:

Your content may not be generating enough traffic. It might be because of lack of quality or poor search optimization, but whatever it is, it’s the very first thing you need to check. To be able to generate leads, you need a large bulk of traffic, and without that, you can’t expect numbers to go up.

Your calls-to-action are in the wrong places. CTAs are like the pearly gates that lead to conversion heaven. They must be scattered everywhere within the prospect’s decision-making phase, and it should clearly define what’s in it for them. If they couldn't see your CTAs, you wouldn't see them either.

Your social media use may be misguided. A lot of marketers are disillusioned about the number of likes or followers they generate on social media. What you really should be looking at is lead potential, and your social media posts should go hand-in-hand with your other efforts, not as an independent campaign.

Your landing page forms are either too long or too short. Studies show that the optimal number of form fields that lead to conversion is from 5 to 10. If yours doesn't fall within that average, then perhaps you need a re-evaluation.

Your leads are not of high-quality.Again, the battle of quantity versus quality. While campaigns may survive by getting tons of mediocre leads, the ultimate success can only be determined by high-quality leads – meaning, those that rake in large sums of revenue and are more likely to stick.

Your promos are outdated, unoriginal or boring. Prospects may lose interest in offers that keep getting recycled over and over. This lessens the likelihood of sharing and loyalty, thus also affecting conversion rates. Come up with something fresh, although risky, to see if it can put back life into your dying efforts.

The 7 Deadly Sins of B2B Lead Generation

There are only two kinds of things that can bring any business endeavor to its demise: unfortunate circumstances and human errors. Obviously, the former is something that’s out of anyone’s control. It could be anything from a paralyzing economic recession to physical disasters like fires or earthquakes. The latter, however, are the flaws and lapses that key people have in making decisions and performing actions. These things are controllable.

When a business engages in B2B lead generation, it embarks on an elaborate campaign to seek and attract potential clients. The task requires careful planning, patience and cooperation between and among marketers and other functions of the business. The things that could destroy that effort – the ones that are controllable – must not be tolerated. As marketers, it is important to understand why these things can be roadblocks to success. 

These are 7 of the worst things that could happen to your campaign:

1. Lack of strategy – Even the simplest marketing activities require a strategy. It’s the framework that guides marketers to their goals and puts and everything in order for them. Without it, management of time, budget and other resources would be topsy-turvy.

2. Lack of commitment – Lead generation is not the sole obligation of marketing, and that’s true. However, if a marketing team engages in lead generation only to perform it half-heartedly, then goals would be difficult to achieve.

3.  Lack of quality content – If lead generation is a restaurant business, then content is the menu list. It’s what draws people into engagement. If the type of content is not compelling enough to spark interest, lead generation would be stagnated into a dead campaign.

4. Lack of collaboration with sales – Marketing should not work independently from sales, especially in walking prospects through the entire sales process. Both departments should have a shared vision as to how a prospect’s experience would be enhanced.

5.  Lack of nurturing – The responsibility of marketers do not end when prospects are turned into leads. There must be a thorough follow-up system to maximize the potential of doing business and establishing a long-term relationship.

6.   Lack of fun – B2B doesn’t have to be a boring enterprise. Even within an industry composed of professionals and executives, the element of fun and camaraderie could still be encouraged. No one wants their business to come out as a square to the public eye.

7. Lack of risk-taking – Eventually, the things that the B2B industry practices now would become obsolete in the future. That may still be a long time from now, but for a business that doesn’t have the guts to take risks even today, tomorrow would be a quandary.

Leadership Traits That Inspire Loyalty In Your B2B Telemarketing Team

Loyalty – the one quality that many business owners and managers want to develop in their employees. This is also the quality that compels marketers to stick to their bosses through difficult times, convincing them to look for viable answer to many B2B telemarketing concerns. Well, you have to admit that generating qualified sales leads through this medium could be a pain. And not many people will stay working for you, what with all the pressure and challenges that they will have to face here. It is your job, as the leader, to inspire loyalty in your people. Mind you, doing that is no walk in the park, but if you know what to do exactly, then you will be on your way to a productive appointment setting campaign.

Let as look at the following, for starters:

1. Be honest – nothing can be more inspiring than being honest with your people. I know, this may sound cliché, but you have to admit that leaders who can remove ambiguities and promote accuracy and openness in the office are the ones who are most likely to succeed in fostering respect and loyalty from their employees. So try to keep that in mind as well

2. Stick to the job description – when you hired someone, you hired them specifically for the job you have in mind. Making them do things that go beyond their job description not only results in poor results (if that employee lacks the proper skill for the new job) but also resentment from your employees. Think of what would happen if you put your researchers in a big-time telemarketing job. They would not like that.

3. Get real – basically, you remove the barriers that keep people from interacting and working together. You know you have something good if people collaborate and contribute towards a better lead generation process. I mean, you can only get that if all the inputs from other members of your company share their thoughts to the one making the marketing plans. Some might even get the courage to go straight to you and share their marketing ideas.

4. Show fairness and openness to everyone – simply put, you want to be transparent, whether it is about that needed to be done or the problems that your company is experiencing. You have to show them that you are someone who appreciates good work and is not reserved with the praise, or critical analysis and advice in case things go wrong.

5. Do not tell them, show them – action speaks louder than words, so to speak. That is how you teach employees how things are done in the office, and in the way you prefer. Sure, you can let them do things their way, but you have to make sure that everyone is heading to the direction you desire.

Having loyal employees is very important in your B2B telemarketing campaign. Try following these tips and you will be able to keep your employees working for you. This is a good investment.

Who Is Better At B2B Lead Generation? An Expert Or A Consultant?

You know that marketing is no easy job. Customer trends and tastes change all the time. And it is up to you to make sure that your B2B lead generation campaign becomes successful. Now, as a marketer, approaching potential sales leads requires that you know how to deal with them best. Basically, you have to assume one of the two common roles that appointment setters make: an expert or a consultant? But here is an interesting part, which of these two roles will fit you? Understanding whether you are an expert or a consultant can affect your marketing style. So, which is which?

  

1.    An expert will tell you what to do, while a consultant asks what you might do – Some business prospects do not like being told straight to their faces of what they should or should not do. Consultants, on the other hand, may not be able to get much, especially if the B2B leads prospects they are talking to are not exactly sure of what they should be doing in the first place.

2.    An expert starts a trend, a consultant follows it – honestly, there is nothing wrong about being a trend-setter. What makes it a problem is when it backfires on you, especially if the trend you want to create actually messed up your lead generation campaign. You might as well observe the trends and deal with what you see.

3.    Experts explain the facts, consultants learn facts – business prospects find it harder and harder to analyze the facts and get things straight, so most of them would love to have someone who could make things easier for them. Experts can do that. But consultants are pretty good as well. They just spend more time studying the market and getting the facts straight. Now that would take a lot of time, but it is worth it.

4.    Experts bring a lot of things in, consultants do not bring much – since experts are pretty much knowledgeable of how the market works, it is only natural that you would be telling them everything they should know about. In the case of consultants, they would want to know more about your business first before they can give a concrete answer. There are a lot of problems and issues that may not be seen by experts that consultants might be able to point out. But still, it may work the other way, depending on the business you have.

5.    Experts talk, consultants ask – knowledge is power, so to speak, and in a B2B telemarketing campaign, you need to know how your prospects prefer to be talked into business with. Do they want to hear what you have in mind, or do they prefer someone who listens to their concerns?

Think about it. This might affect your decision on what exactly is the kind of b2b lead generation specialist you are going to be. You can bet that your approach to sales leads prospects will be influenced by the way you deal with them.

How To Prioritize B2B Lead Generation Tasks

As a business owner or manager, it is understandable if you want to generate the most number of IT sales leads for your company. The IT industry, while profitable, is also the most competitive. A lot of IT companies rise and fall every day, and only the strength of their products and the skills of their B2B lead generation team is what keeps the ones who survive afloat. And with all the things that you have to deal with, you cannot just cover everything in a single day. You need to learn how to prioritize. Otherwise, you would be stretching yourself so thin you have to chance to recharge or recheck your bearings. Now that would be more damaging to your IT business. So, how would you prioritize your tasks?

1.    List down your tasks – the main reason why you end up so overwhelmed with your work is because you do not know how many tasks you have to fulfill. Take stock of your work load. Only then will you know which one would be the most important in B2B leads generation.

2.    Identify the most draining tasks – to be honest, the one activity that would really drain you would be appointment setting. I mean, this is a process that requires constant monitoring and follow-up. You have to do that one right, before you deal with the rest.

3.    Forget about the perfect time – honestly, there will never be a perfect time to decide on things. You just have to deal with the challenges that get thrown your way. If you need to deal with your IT telemarketing campaign fast, then you really have to deal with it. Delays by waiting for the perfect time will not get you anything.

4.    Try not getting stuck on the big picture – sometimes, looking at the big picture makes you lose focus on the small details. And to tell you the truth, it is the small details that matter in your everyday operations. As a marketer, you should ensure that the small details are properly attended to. The big picture would take care of itself.

5.   Move on – there are so many tasks that you need to do in a single day that you just cannot afford to linger on one that you have just taken care of. If you think of each of these tasks as a sort of stages, one that will get you to your intended goals once the day ends.

6.    Rinse and repeat – basically, you do the cycle all over again the next day. The thing about marketing, and its accompanying tasks, is that the process never ends. You know that there will be more tasks coming up on your plate, and it is up to managers and entrepreneurs like you to put some system or process in place to help you go about your work, every day.

That is how you prioritize your tasks in B2B lead generation campaigns. Your IT business would be in a better spot with this.

Problem-Solving Strategies In Effective Lead Generation

Customer complaints will always be part of your business campaign, and it is up to marketers like you to deal with them and keep them from getting out of hand. Otherwise, you might have some difficulties in your future B2B lead generation campaigns. This is one thing that you have to do right, since social media can be a real downer to your B2B leadscampaign if your prospects check and see that your customers are saying negative things about you. Now that would be a realwrecker for your marketers. This is an issue that you need to take care of. At least there are only three things you need to consider before you go out solving a customer’s problem.

First of all, you need to know just how big the return on your investments will be. 

You see, it is all right to solve a customer’s problem. Indeed, you have to solve it, how else will you be able stay in business, then? The problem here is that some customers are just so hard to please. Dealing with such people not only steals a lot of your time, it also keeps you from your appointment setting tasks at hand. In cases like these, it is best to just solve it to the best of your abilities – and leave it at that. It will not help you to fret over it too much. If it is broken, fix it right. If it is still broken, and fixing it will not get you anything good in return, then you might as well leave it.

Second, are your people properly informed of the customer’s problem? 

With multi-tasking being the norm in a lot of businesses, where a single employee might act both as telemarketing representative and secretary, then you need to make sure that they are aware of what your customers expect from them and how you will address that need. People need to know why they are being made to do things. Setting expectations about their work will help them work better and provide meaning in what they are doing. But you do have to inform them about it. This calls for all your skills in communication to get your message across them.

Lastly, you have to make sure that you are ready for the consequence.

This is especially true if you fail to solve the problem of your customers. If that failure is what prospective sales leads ask you about, then you should have a reply at the ready. Sometimes, explaining things can be a real pain, especially if that failure is a sour point in your business operations, but brushing it aside will not get you anywhere near your goals. Be ready to defend your business, andyour products, in case that happens. It is a necessary part of your overall marketing process.

Trouble with customers and B2B leads is normal. It is how you deal with that that makes all the difference in your lead generation campaign.

B2B Marketers, Be Careful What You Ask For

For the past few years, B2B marketing thought leaders and practitioners have been advocating that marketing should play a larger role in the demand generation process. Proponents of this view argue that marketing should have the primary responsibility for acquiring new sales leads via inbound and outbound marketing programs and for nurturing and qualifying leads until they are ready to begin a meaningful engagement with a sales rep.

According to its advocates, this model of demand generation is more consistent with how today's business buyers learn about issues and possible solutions and make buying decisions, and it also uses a company's demand generation resources more effectively and efficiently.

While the arguments supporting this demand generation model are compelling, implementing it will constitute a major change for many B2B companies. To understand how just big the change is, we only need to look at where leads are coming from today.

The following table is based on the annual Sales Performance Optimization surveys conducted by CSO Insights and includes data from the survey results published in 2011, 2012, and 2013. The survey question asked respondents to specify what percentage of their sales leads are self-generated by sales reps, what percentage are generated by marketing, and what percentage originate from other sources. As the table shows, B2B companies are still relying on salespeople to generate almost half of all new sales leads.



 

The distribution of lead sources shown in the above table has been fairly stable now for several years. The following chart is also based on data from the Sales Performance Optimization surveys and shows the percentage of total leads generated by marketing from 2005 through 2013. As the chart shows, marketing has been producing between 24% and about 30% of total leads for the past seven years.



 

The CSO Insights data makes two important points. First, it clearly shows that B2B marketers will need to "step up their game" if they want marketing to take the lead in lead generation. They must be ready to demonstrate to senior company leaders that they have a strategy that will produce enough sales-ready leads to enable their company to achieve its revenue goals.

 

Perhaps more importantly, the CSO Insights data makes it clear that successful lead generation will require the involvement of both marketing and sales (and other business functions as well), at least for the foreseeable future. Even if marketing significantly increases its lead generation results, it is likely that, for the next few years anyway, between 40% and 50% of leads will still be produced by sales reps and other sources.

How to Avoid Lead Genocide

Several days ago, I came across a great blog post by Jill Konrath. If you're not familiar with Jill's work, she is a well-respected sales consultant/trainer and the author of SNAP Selling and Selling to Big Companies.

In her post, Jill describes an experience with a provider of CRM software. You can read Jill's post to get the full flavor of the experience, but I'll provide an abbreviated version.

Jill received an e-mail from the CRM provider offering an ebook on the social sales revolution. Jill registered to obtain the ebook because she was interested in the topic. She had zero interest in acquiring a new CRM solution.

Just a few minutes after downloading the ebook, Jill received an e-mail from the CRM provider suggesting a "brief 10 minute call" to answer questions and "explain how our different products and services could bring value. . ." This call would help "shorten your evaluation process" and provide "exactly the information you need to help make any comparisons or decisions."

Exactly 34 minutes after this message, Jill received a second e-mail. The second message indicated that the sales rep had been unable to reach Jill by telephone and asked Jill to "let me know if it makes sense to connect." Two minutes later, Jill received a third e-mail asking her to answer nine questions regarding her CRM environment, including what she wanted her CRM system to do for her business, how many users she would have, and what other solutions she was evaluating.

Jill's post provoked numerous comments, and many of the people who commented said they had experienced something similar. One person said that she called this kind of marketing lead genocide rather than lead generation. I've had several experiences similar to Jill's, and I suspect many of you have also.

Practices like this are the epitome of bad marketing. In some cases, these aggressive practices may be the result of an honest, but mistaken, belief that just because a prospect has downloaded one white paper or ebook or attended one webinar, he or she is actively evaluating a potential purchase and is ready for a sales-level engagement.

More often, though, these kinds of practices result from an erroneous belief by sellers that they can push or drive or advance prospects through the buying process. The reality is, prospects control the buying process, and they determine how quickly they will move through the cycle. As I wrote in an earlier post, the only way you can consistently accelerate the buying process is to eliminate the friction that slows prospects down. Anything else is, at best, wasted effort, and it will usually do more harm than good.

To avoid the kind of marketing malpractice described in Jill's post, resist the urge to treat a prospect's first interaction with your business as an invitation to begin a late-stage sales conversation. And remember that, while you can facilitate your prospects' decision-making process, they ultimately decide when and to what level they will engage with your business.

An Inconvenient Truth About B2B Demand Generation

If you're a B2B marketer, describing the major attributes of your lead-to-revenue funnel and measuring the dynamics of your funnel are critical to understanding how well your demand generation system is performing. Funnel metrics will help provide the answers to three basic questions:

• Volume - Are our marketing programs generating a sufficient number of raw leads (sometimes called responses or inquiries) to produce the revenues that marketing is responsible for?
• Conversion - What percentage of leads are "converting" from each lead stage to the next across the entire lead-to-revenue cycle?
• Velocity - How long is the overall revenue cycle? In other words, now much time does it take, on average, for an initial response or inquiry to result in a closed sale?

Many B2B companies use the Demand Waterfall model developed by SiriusDecisions to describe and measure the lead-to-revenue funnel. The graphic below shows the major stages in the Demand Waterfall and the conversion rates achieved by average B2B companies, according to SiriusDecisions. (Note:  SiriusDecisions recently revised the Demand Waterfall to add several lead stages, but the framework shown below is still widely used by B2B companies.)

Now for the inconvenient truth. Research strongly suggests that the demand generation system in many B2B companies is horribly inefficient. Based on the conversion rates identified by SiriusDecisions, the average B2B company needs to generate 351 inquires to acquire one new customer. That equates to an overall lead-to-revenue conversion rate of only 0.3% (4.4% x 66% x 49% x 20%).

Forrester Research has found similar levels of demand generation performance. According to Forrester, the average overall lead-to-revenue conversion rate is 0.75%. What makes this issue important is that your overall lead-to-revenue conversion rate has a big impact on your company's overall cost of sales, which obviously affects company profitability.

 

The good news is that companies can significantly improve the performance of their lead-to-revenue funnel. In addition to identifying the lead conversion rates achieved by the average B2B company, SiriusDecisions has also studied the conversion rates achieved by Best Practice companies, and their research shows that Best Practice companies perform substantially better across the board. The table below shows how the higher conversion rates achieved by Best Practice companies impact lead-to-revenue funnel performance.

 

 

 

As this table shows, Best Practice companies must generate only about 70 inquiries to acquire one new customer, while average firms need five times as many. Best Practice companies also achieve an overall lead-to-revenue conversion rate of 1.4%, which is about five times higher that the rate achieved by average firms.

The performance of your lead-to-revenue funnel will tell you a great deal about the effectiveness of your marketing and sales efforts. So, if you aren't currently using funnel metrics, now would be a good time to start.