In part one of our two-part article series around lead generation, we will explore a framework to drive lead volume and investment. Part two will expand upon lead attribution diving deeper lead management process and governance.
Lead generation investments, along with AI/analytics and marketing automation, are two of the top three marketing investment areas for 2022. Overall, 79% of organizations are increasing or significantly increasing marketing spend in 2022. (Source: Alexander Group’s 2021/2022 Sales Pulse Survey). In order to fill the funnel with high-quality leads, organizations need to ensure they have the “right mix” of lead sources. This is a key concern for organizations as they determine how to invest in the lead generation engine.
Organizations are identifying leads from a variety of different sources:
However, the efficacy of the lead sources varies on two key factors: Product Attributes and Selling Motion.
If the product is innovative and represents a new solution or product category where budgets have to be created (as opposed to leveraging existing budgets), the lead generation efforts primarily lie with the sales team supported by marketing efforts. A product evangelist is responsible for creating excitement in the marketplace about the new products and solutions. They partner with the marketing organization to drive value messages, but the ownership lies with the sales team.
Account-based marketing can be incredibly effective in driving lead volume within the existing install base. The sales team has already landed the customer and therefore established contacts and relationships. Targeted messaging efforts will reach the right buyers/decision-makers and open the door for the salesperson along with the XDR to have conversations about the new offering.
This is a multi-channel approach to driving leads and the mix will be determined by an organization’s strength of their channel program, as well as the amount of time that sales reps need to prospect to identify and qualify opportunities. Leveraging the channel organization to its fullest capacity for driving lead volume coupled with the sales team’s prospecting efforts, (which shouldn’t exceed 15% of their available sales time based on Alexander Group’s center practice) will determine the additional lead volume necessary for marketing and XDRs to deliver.
Typically, a salesperson will take the lead in current accounts due to existing relationships. However, an emerging trend is to leverage account-based marketing efforts and XDR teams particularly in enterprise accounts to drive cross-sell opportunities with either new offerings or within new buying centers.
Leveraging this framework and criteria for understanding where to focus lead generation efforts will help inform demand generation investments on a go-forward basis.
In the second part of this series, we future explore lead attribution.
If you’re interested in learning more about how Alexander Group can help your organization, contact the Alexander Group Technology team.