Most Small Business Feel They Need More Leads to Increase Sales

Most small business feel they need more leads to increase sales. I am not so sure that’s entirely true. Here’s why: Most businesses do not know how much they are spending on a lead. Or the value of the lead their spend generates. They may use the simple formula of Total sales Value / Total Leads = Total Lead Value. However, that is a #marketing metric, not a sales metric. Moreover, the metric is misleading because it does not effectively account for advertising and branding. It completely ignores what the lead is all about: Attracting New Customers. And this is where the rub is, small and med-sizes business are so busy ‘marketing’ they are spending money attracting the wrong customer. The Avatar or Persona is incomplete or guess work. Good Marketing Qualified Leads are targeted to buyer type. This helps sales reps sell and gives a better conversion metric for Sales Qualified Leads.   Ideally, #sales teams should do some sourcing of leads themselves, as well. By this, I mean salespeople who actually sell. Not CSRs, or order takers, but individuals that proactively engage in persuading a customer. Asking questions. Scoping needs. Delivering an offering that is of value to a customer. Today, sales strategies are digital first, and marketing is omni-channel. Business leaders need to spend some time on understanding their Cost per Sale and the value of each channel to produce a new customer. Sure, it’s a pain, and difficult, but doing so helps you understand your marketing spend, effectiveness of your messaging, and the sales rep truer value. The technology is there, we need to use it.  It’s leadership’s job to make decision on how to allocate resources. Pouring more money into ‘Lead Gen Marketing’ is, well, hasty without truly appreciating how to optimize the process.  #leadership #business #salesenablement