Are your leads displaying symptoms of weakness? A low activity level? Are they shuffling feebly through the conversion process, usually to the point of total exhaustion? Your company could be suffering from Lead Frailty, a condition which, if gone untreated, can be lethal to your sales team’s performance, marketing effectiveness and your firm’s profitability.
Give your leads a check-up right now. Do they present any of the following?
- Outdated contact information
- Incorrect job titles
- Inadequate data
Any one of these is a strong indication your demand generation program is suffering from Lead Frailty.
There are many causes of Lead Frailty and are especially dangerous in the way they destroy the lifeblood of the pipeline – leads. Lead Frailty affects top of funnel, mid and bottom of the funnel and impacts potential revenue. No lead is safe.
And the costs? Potentially catastrophic.
Suppose you purchased a B2B contact list for $5,000. And let’s say that 40% of the leads suffer from at least one of the above mentioned symptoms (unfortunately, a realistic estimate). You wasted $2000, right? Yes… and much more.
The Real Costs
The truth is, you wasted a lot more than the hard cost of each bad lead. Lead Frailty is an insidious malady that eats up money throughout your organization. For example:
Cost per Lead.If 40% of your leads are unusable, figure another 40% aren’t going to convert. So you’ve actually wasted 80% of your spend! Now, achieving a meaningful ROI becomes a significant challenge.
Loss of productivity. Presumably salespeople aren’t working for free. Good leads or bad, you’ve got to pay your people to do their jobs. Poor quality leads that don’t convert into revenue make unproductive sales and marketing teams.
Cost per lead/Marketing ROI (insert your applicable metric).Some sales teams measure revenue per campaign; some by new customer acquisition cost, and even some per transaction. However you set your metrics, a weak lead equals wasted time. And time, as we all know, is money.
Marketing and Sales Misalignment.This is a cost that might be difficult to measure from an analytics standpoint, but it’s a very real and significant issue for your sales and marketing organization. When sales becomes convinced they’re getting leads that aren’t likely to convert, their perception becomes reality and they neglect the agreed upon lead process. The more that happens, sales and marketing alignment falls apart and with it, the pipeline.
Fortunately, There is a Cure
The fight against Lead Frailty is one every marketer can support. Find solutions to poor lead quality in a recent article in FierceCMO. Don’t give up on the fight against Lead Frailty. Improve the quality of your leads and achieve better ROI.