The Payback of Optimizing Lead Generation

    June 20, 2006

A dilemma faced by many senior executives is whether to put more money into sales or into marketing.

Often, they feel it is better to hire more sales people to increase sales than investing more money into lead generation programs.

Contrarily, my research shows that for the complex sale, it is far more effective to support proven sales people with good lead generation than hiring additional sales people.

A new white paper by CSO Insights supports my research and shows that companies that support their sales teams with lead generation programs have higher conversion rates and increased sales effectiveness than those who don’t.

I interviewed Barry Trailer, Partner of CSO Insights about their White Paper, “Optimizing Lead Generation – What’s the Payback?” He said, “Our findings point support that improved lead generation positively impacts sales team effectiveness and revenue. When companies increase the quantity and quality of their leads, they increase the odds of winning sales.”

Among other things, CSO Insights data from 1,275 companies shows that those excelling in lead generation gain the following advantages over companies that do not:

  • Win rates are 7 percent higher
  • Number of sales representatives making quota is 9.3 percent higher
  • Conversion rate from leads to first calls is 16.5 percent higher
  • More than 10 percent decrease in ramp up time for new sales people

I expect there will be more research on this very important subject.

You can download the white paper here (registration required).

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Brian Carroll is the CEO of InTouch Inc. InTouch is a 50-person company focused on delivering effective lead generation solutions for “the complex sale.”

Brian authors the very interesting B2B Lead Generation Blog which focuses on B2B lead generation, sales leads, and marketing for the complex sale.