By David Mazza
We’ve all been here before….
Sales: “We need more leads!”
Marketing: “Why don’t you call the ones you have?”
Both will fight to the grave that they are right in their stance.
So who is right?
For a long time, I always thought the answer was that the marketer was right. Shocking, since I’m a marketer driving the best leads on the planet, obviously…
But as time progressed and I spent more and more time bridging the gap between marketing teams and sales teams, it became apparent that we were both right. It was clear to me that there were, in fact, good leads and bad leads.
But what wasn’t clear to me was how to give them only the cream of the crop.
There wasn’t one magical channel that held all the value, and if I shut something down, there was always a case of throwing a baby or two or ten out with the bathwater as all good impressions drive value to the end goal of success.
Every business I have seen the guts of has run into this problem, and every company has attempted different remedies depending on the stage and level of sophistication of the business themselves.
The information here is intended to be a valuable hack for any marketing or sales professional to help put together the initial set of information need to start cutting down on dials, and driving higher ROI immediately.
Taken to the next level and paired with a high-powered data team, this framework is what led to driving 100% of new business with 40% fewer dials at LendingHome.
But, before we get into the “how”, let’s start with the “why”.
If any of these sentiments make you nod, sit up in your chair, or make you shake your head, you’ll definitely want to keep reading through.
Let’s get into it.
The Vicious Cycle
Here’s the most common and vicious cycle that I’ve seen play out at different organizations when it comes to driving growth. With enough time spent around SaaS startups, just about everyone has seen some form of this “leads vs headcount” dynamic play through.
SDR teams always want more leads, but there’s never a great idea of what the “right amount is”. If budgets are increased, an SDR team is swamped with leads of varying quality there is undoubtedly a point of diminishing returns.
They may be technically producing “more”, but it’s not in proportion to the incremental marketing expenses that are coming along with it.
Here’s why we tend to see that unfold:
- Without scoring, SDRs spend an equal amount of time on each lead or apply their own scoring which causes them to not call certain leads at all.
- As paid budgets increase, the overall quality of lead volume tends to diminish (let’s be real marketers, it is incredibly true!)
- As total leads increase, dials per lead diminish.
- As dials per lead diminish, conversion rates to qualified customers diminish.
- As rates to qualified customers diminish, ROI diminishes with it.
- As ROI diminishes, everyone is under the gun.
At this moment of time, there are usually a couple of Go to the full article.
Source:: Business 2 Community