When sales teams need marketing to help them make their numbers, the natural response is to go fishing for hot leads. However, as I wrote previously in a white paper on “Lead Recycling,” focusing demand generation activity exclusively on acquiring net new, qualified leads is an expensive proposition for a number of reasons:
• many products, particularly in the tech category, are first of breed solutions and/or of a complexity that demands a more long term, consultative selling process. Prospects may simply not be ready to buy a solution because either 1) they don’t know such a solution exists, or 2) they may not even be aware they have the relevant problem in the first place;
• focusing on only the most qualified prospects leaves many potential (albeit, more long term) deals on the table. A potential customer might have precisely the problem that a particular product or service solves and are anxious to solve that problem, yet may not feel as though they’re ready to buy and so fail to respond to the campaign;
• response rates from tactical campaigns designed to uncover hot leads are likely to be much lower (since active buyers only represent a subset of potential customers), so companies need to spend more money to generate relatively few opportunities;
• lastly, because the campaigns weed out all but those prospects in active purchase mode, they leave the sales pipeline empty once those deals have been either closed or disqualfied. This requires a constant re-loading of the sales funnel with new, expensive leads. Read More »