Is Lead Generation Really Worth It?
To grow your business, you need to create opportunities with potential new customers and convert them. In that sense, the question is less ‘is lead generation worth it?’ and more ‘can I afford to not generate leads?’.
When people ask if the practice of generating leads is worth it, they are usually really asking if adding lead generation professionals to their internal teams is a wise investment, or whether they should team up with an expert external lead generation company instead.
So, What is a Lead Generation Company?
A lead generation company is an external provider that specializes in providing sales opportunities for a business. But that is not all. There are a variety of diverse types of lead generation businesses out there, all of which can help businesses like yours to grow, just in a variety of diverse ways. Some match you against existing lists of contacts who are happy to be contacted, others use call centers to reach out to potential customers and a few utilize digital paid media channels to generate inbound inquiries. Whatever way the inbound inquiries arrive, they are picked up by expert teams within the lead generation agency.
Should You Buy Leads from a Lead Generation Service?
When it comes to deciding whether to use a lead generation service, it can sometimes feel like there are too many options to choose from. Some lead generation agencies are better than others, however, there are still some obvious reasons why businesses buy leads. They take the responsibility of marketing away from the businesses themselves, meaning leads are delivered to you quickly without the need for excessive internal resources or expertise beyond simply creating an excellent product or service.
Sadly, life is not always as simple as that, and utilizing lead generation companies can also have its drawbacks. Some are expensive, and offer a poor return on investment, but the most common cause for this would simply be the fact that the lead generation company being used in the first place was not a particularly good one.
Typical bad practices that are seen in substandard lead generation companies include:
- Use of leads that are not qualified. Companies will sell lead lists that are just a list of names.
- Selling “used” leads or the same leads being sold to your competitors.
- Use of unqualified leads means that your company may be unwittingly cold calling which has an exceptionally low conversion rate (2.5%) as the leads have not been nurtured or prequalified.
If your lead generation company engages in any of these bad practices, you will end up wasting resources that could have been better used elsewhere. Therefore, it is essential to choose a lead generation company that provides a good service and generates leads which are genuinely yours.
Good Lead Generation Company Practices
So, what are some signs that a lead generation agency is a good fit for your business?
1. Mastered one or more of the primary platforms for creating qualified leads in your industry
Commonly, many companies in the B2C space are leveraging Facebook and Instagram to sell their products to generate new leads. On the other side, B2B companies might use LinkedIn and YouTube to reach out to their target clients.
2. Mastered the art of customization.
Many companies come off robotic and impersonal when marketing is aimed at people, and therefore they want personalized messaging, tailored to their needs. Customization and personalization of your lead generation campaign, such as through marketing campaigns that are targeted to a specific segment or individual have a 14% improved click-through rate and 10% higher conversions.
3. High-quality, exclusive leads
A high-quality lead is one that has been generated exclusively for your company, unlike those which have been generated at random and shared with potential competitors like we mentioned above. An example of a high-quality lead is one that has willingly signed up for more information about your company at a web event. A truly great lead generation company will have contacted the lead, making sure they fit the needs and financial commitments and turning them into a sales qualified lead. 46% of marketers with well-planned lead management strategies have sales teams who follow up on more than 75% of leads.
4. Technology is up to date
A good lead generation company will have great technology that makes use of robust digital tools that agencies utilize to find, track, and manage the different aspects of their service. It is essential that whatever they are using can be easily integrated into your selected CRM.
As you can see, the question ‘is lead generation worth it’ is not a simple one. Employing the services of a lead generation company may not be the right choice for your organization, however, if you choose the right company that utilizes good lead generation practices, it can be a significant step towards helping your organization grow.
If you’re looking to accelerate your business’ growth with sales-ready leads, book a demo with RPM today.