May 24, 2024
Generating leads is only the first step towards achieving revenue growth. Understanding why your leads don't always translate into revenue is crucial for optimising your sales and marketing efforts.
Nearly 80% of marketing leads do not result in sales, primarily due to a lack of effective lead nurturing³. Despite the importance of nurturing leads, many B2B marketers have yet to implement such practices.
However, despite the diligent efforts put into lead generation, the harsh reality is that not all leads materialise into revenue. On average¹, only around a fifth of generated leads will eventually convert to sales.
So, what's the missing link?
Well, it could be a number of different things, let’s take a look:
1. You’re Prioritising Quantity Instead of Quality
One of the fundamental reasons leads may fail to convert lies in their quality. Quantity alone does not guarantee success; it's the quality of leads that truly matters.
68% of B2B marketers reported that their highest lead generation priority was to increase lead quality, while 59% indicated that generating high-quality leads is their biggest challenge.²
Leads that are inadequately qualified or fail to align with the ideal customer profile are less likely to progress through the sales funnel and culminate in revenue generation.
How Do We Refocus on Quality Over Quantity?
Implement Targeted Marketing Strategies
Focus on targeting specific segments of your audience that are more likely to convert into paying customers. Utilise data analytics and customer profiling to identify high-value prospects.
Improve Lead Qualification Processes
Develop clear criteria for lead qualification to ensure that only the most promising leads are passed on to the sales team. This could involve assessing factors such as budget, authority, need, and timeline (BANT).
Enhance Content Relevance
Create content that addresses the specific needs and pain points of your target audience. Tailor your messaging and offerings to resonate with the interests and challenges of your ideal customers.
2. You Have Little or No Follow-Up
Prompt and persistent follow-up is the lifeline of lead conversion. Research has found that adding just one follow-up in your sequence can increase new leads by 28%⁴, while sending up to three can increase your success rate by over 80%⁶. Yet, this crucial step often gets overlooked or delayed.
Failure to promptly engage leads or maintain consistent communication can result in missed opportunities as potential customers lose interest or turn to competitors who are more responsive.
Some sales teams also give up too early - on average, it actually takes 8 follow-up calls to reach a prospect⁵.
What does good lead follow-up look like?
- Respond promptly, personalise messages, and maintain consistent communication.
- Provide value in each interaction and use multiple channels.
- Be persistent but respectful of the lead's preferences.
- Track results to refine your approach.
How To Improve The Follow-Up Factor
Implement Automated Follow-Up Systems
Use marketing automation tools to set up automated follow-up sequences that engage leads at key touchpoints in the buyer's journey. This ensures that no leads fall through the cracks and that consistent communication is maintained.
How this might look:
Let's say a software company, Tech Solutions Inc., offers a project management tool for small businesses. After potential customers visit their website and sign up for a free trial, Tech Solutions Inc. wants to ensure that they stay engaged throughout the trial period and ultimately convert into paying customers.
To achieve this, Tech Solutions Inc. decides to implement an automated follow-up sequence using a marketing automation platform like HubSpot.
Here's how they set it up:
1. Welcome Email: As soon as a lead signs up for the free trial, they receive a personalised welcome email from Tech Solutions Inc.
2. Educational Emails: Over the course of the trial period, Tech Solutions Inc. sends a series of educational emails to the lead, highlighting different features and benefits of the project management tool. Each email is tailored to address common pain points faced by small businesses and demonstrates how the tool can help solve them.
3. Reminder Emails: If the lead hasn't logged into the platform or engaged with the trial after a certain period, Tech Solutions Inc. sends automated reminder emails to encourage them to take action.
4 .Follow-Up Emails: Towards the end of the trial period, Tech Solutions Inc. sends follow-up emails to check in with the lead and see if they have any questions or concerns. These emails may also include special offers or discounts to encourage the lead to upgrade to a paid subscription.
5. Conversion Emails: Finally, if the lead hasn't converted into a paying customer by the end of the trial period, Tech Solutions Inc. sends a conversion email offering a last-minute discount or incentive to encourage them to make a purchase decision
Personalise Follow-Up Communications
Customise follow-up messages based on the lead's previous interactions and interests. Incorporate personalised content and offers that are relevant to the lead's specific needs and preferences.
Leverage Multiple Communication Channels
Reach out to leads through various channels such as email, phone calls, social media, and personalised direct mail. Diversifying your communication channels increases the likelihood of reaching leads and encourages engagement.
3. You’re Not Nurturing Properly
Leads, much like delicate plants, require nurturing and care to flourish. Companies that excel at lead nurturing generate 50% more sales-ready leads at 33% lower cost, and nurtured leads make 47% larger purchases than non-nurtured leads⁷.
Sometimes it can feel like a tough slog when you’re constantly getting told no, but 60% of customers actually say no four times before saying yes, but 92% of salespeople give up after no sales on the 4th call.
Without adequate nurturing efforts, leads may wither away, leaving businesses empty-handed.
Nurturing for Success
Develop a Lead Nurturing Strategy
Create a structured lead nurturing program that guides leads through the buyer's journey with relevant content and interactions. Map out touchpoints and communications at each stage of the funnel to keep leads engaged and informed.
Provide Value-Added Content
Offer educational resources, industry insights, and exclusive offers to nurture leads and demonstrate your expertise. Delivering value-added content builds trust and credibility with leads, increasing the likelihood of conversion.
Segment Leads for Personalised Nurturing
Segment leads based on their behaviour, interests, and stage in the buying cycle. Tailor your nurturing efforts to address the specific needs and concerns of each segment, delivering targeted messaging and offers.
4. Your Lead Hand-Off to Sales is Unclear
This point might seem obvious, but I’ve seen it done poorly. An inefficient or disjointed sales process can ruin conversion efforts. When leads are secured, followed-up and nurtured by marketing, to then be handed over to sales, poor communication, lack of understanding of customer needs, or an overly aggressive sales approach can deter leads from progressing further, resulting in lost revenue opportunities.
Streamlining the Sales Process
Align Sales and Marketing Teams
Foster collaboration and communication between sales and marketing teams to ensure a seamless transition of leads through the sales process. Establish clear handoff procedures and feedback mechanisms to streamline the process.
Implement Sales Enablement Tools
Invest in sales enablement tools and technology that automate administrative tasks, provide real-time insights, and support sales representatives in delivering personalised experiences to leads.
Continuously Optimise Sales Processes
Regularly review and optimise your sales processes to identify bottlenecks and inefficiencies. Solicit feedback from sales representatives and lead to pinpoint areas for improvement and implement corrective actions.
5. Your Target Audience Doesn’t Trust You
Trust is the currency of business, and credibility is its backbone. Leads are unlikely to convert into paying customers if they lack trust or confidence in a brand.
Customers who trust a brand are more likely to:
- Make more purchases (71%)
- Recommend the brand to friends (61%)⁸
Building trust requires transparency, consistency, and reliability in interactions with leads, fostering a sense of security and confidence in the brand.
Winning Trust and Credibility
Focus on Relationship Building
Prioritise building long-term relationships with leads based on trust, transparency, and reliability. Invest time in understanding their needs, addressing their concerns, and providing exceptional customer service.
Demonstrate Social Proof
Showcase testimonials, case studies, and success stories from satisfied customers to provide social proof of your brand's credibility and reliability. Highlighting positive experiences from existing customers helps to build trust and confidence in your brand.
Maintain Consistent Brand Messaging
Ensure consistency in your brand messaging across all touchpoints and interactions with leads. Communicate your brand values, mission, and commitment to customer satisfaction consistently to reinforce trust and credibility.
The journey from lead generation to revenue realisation is a multifaceted process that requires careful attention to detail and strategic implementation. With the right strategies in place, businesses can unlock the full potential of their leads and drive sustainable revenue growth in the long term.
- https://adamconnell.me/lead-generation-statistics/
- https://now.aiccbox.org/five-reasons-why-most-lead-generation-efforts-fail/
- https://99firms.com/blog/lead-nurturing-statistics/
- https://adamconnell.me/lead-generation-statistics/
- https://ircsalessolutions.com/insights/sales-follow-up-statistics/
- https://fitsmallbusiness.com/sales-follow-up-statistics/
- https://www.parkerwhite.com/insights/55-lead-nurturing-statistics-that-should-be-in-every-marketers-arsenal
- https://business.adobe.com/uk/blog/perspectives/7-in-10-customers-will-buy-more-from-brands-they-trust-uk
