Pressure is mounting on companies to maximize marketing ROI (return on investment). In other words, the money spent on lead generation should show a strong return related to sales revenue. This money should be evaluated so it is continually applied to the highest yielding program(s). To do this, marketers must gain visibility into individual programs to determine the number and quality of leads they generate and how many ultimately transform into closed sales.
But the issue doesn’t stop there. Increasing the value of lead generation dollars also means ensuring the leads being handed to costly sales resources are indeed sales ready. According to CSO Insights’ Sales Performance Optimization Study, salespeople are generating 50 percent of their own leads. That’s an expensive proposition and raises the question: What is marketing doing?
It’s clear marketers must find ways to track and manage leads through the lead life cycle. This requires the ability to evaluate leads, determine when leads are sales ready and understand when they are not. Additionally, marketers must take responsibility to nurture the leads that aren’t sales ready to maximize the value of what they’ve spent on lead generation dollars.
Industry benchmarks suggest that leads must be continuously “touched” before they close. About 80 percent of leads close after five contacts and sometimes it’s closer to nine to 11 touches. If you’re assuming the value of lead generation dollars comes from one email blast or a month of AdWords, you’re not on the right track to understanding how to increase value. Nurturing leads as part of lead generation programs will increase the return of dollars.
To learn more about how you can change your sales and marketing process to improve efficiencies and stop the leakage by lead nurturing, download our whitepaper on “The Cost of Not Nurturing Leads” today!