There is a common misperception that when it comes to lead gen, “the more leads you have, the better your territory”.
After more than 26 years’ sales experience, I’ve become all too familiar with this claim. In reality, however, sheer quantity has little value in and of itself. In fact, it can in some cases even be detrimental to your lead generation efforts.
Unfortunately, many marketers believe this misconception, and have been responding by growing their databases for CRM, centralized marketing, and marketing automation ever-larger. They do so at their own peril.
Here are 5 reasons to consider the serious risks and cost of data hoarding:
1. Data management costs
B2B data stagnates at an average of 3% per month. According to SiriusDecisions, this is reflected by the average B2B marketing database supporting up to 25% of bad data within their most critical systems!
Yet as you continue to pour in more records rather than implementing effective measures to increase the level of quality –– such as predictive scoring/segmentation and data quality management — your data sustainment costs grow with each of these databases, whether CRM or Marketing Automation.
2. Lack of Productivity
How much time is wasted on trying to find the right folks within your database, only to discover that even your best guess lands you with someone who left 18 months ago — or even worse, passed on?
How often does your team really update all the necessary information when they engage in outreach? How often do you think multiple people action the same records because none of the learnings were shared?
What about market segmentation for your teams to leverage? Marketing could be tailoring content for smaller, target audiences (or accounts) to be more relevant, as opposed to the SWAG “spray and pray”/volume approach.
3. Market Perception
What do you think the impact is when your teams reach out to folks that are completely unrelated to the business needs you are trying to address? Could it make your team look unprepared and uninformed?
How will this approach of shooting from the hip — and the high rates of failure which inevitably accompany it — affect your team’s morale in the long-term?
4. Losses on previous investment
How often do you see your teams identify a primary sponsor, only to see them leave near the end of the cycle? Has anyone taken the time to build out the account contacts and engage actively with them? If the answer is “no” or “not enough,” you may have just needlessly squandered your next customer.
The investment you make in building a relationship can be quite costly — but it’s worth the time and energy. For example, did you know that a nurtured contact is over 20% more likely to convert than a first-time prospect?
This also applies to leads with whom you built a relationship in their previous job. We’ve all had leads like that. What are you doing to ensure your relationship with that prospect or customer does not face interruption because they changed jobs?
5. Missed Opportunities
How often does your team engage with a single point of contact, and later find that they missed one or more opportunities because they were not wider or deeper within an account? Full account penetration is very important — but it takes work.
The knowledge and insights to understand job functions and individual expertise ensure you proactively know who your key players are. They can then be segmented within campaign to ensure you don’t have key players slipping through the cracks.
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