Lead generation is a different process than closing a sale. The ability to find new potential customers for your business is invaluable to keep your business running, but it’s difficult to ensure you’re doing it properly. You could also outsource to a lead generation company to do the finding for you.
However, since lead generation companies are more focused on getting you leads than they are on getting you sales, you want to make sure you don’t invest in a company that won’t win you success.
Here, we go over the 5 most common lies lead generation companies tell their clients. Then we explain strategies you should use instead to turn your leads into sales.
1. The More Leads You Have, the Better
Lead generation companies are typically employed to produce sales or marketing leads for their clients. The easiest way for these lead generation companies to show their clients that their services are invaluable is to produce large quantities of leads. They can show their clients how many leads they have generated in a specific amount of time and charge their clients based on that number.
Instead, Focus on High-Quality Leads
Don’t employ a lead generation company that produces unmanageably large lists of leads. Your sales team won’t be able to contact or nurture the leads, let alone close the sale.
You should pre-filter your leads before they ever get to your sales team. Otherwise, your sales staff will contact a lot of potential customers who aren’t interested in your product while other customers choose the same product from your competitors.
2. Contact Information Is As Good As a Lead
A list of names with contact information does not constitute a list of leads. Don’t trust a lead generation company that produces long lists of leads without explaining why the leads would be interested in your product.
Instead, Invest in Research
The list of leads you hand to your sales reps should be sufficiently researched. About 60% of the success of your marketing campaign depends on the accuracy of your lists.
Use multiple sources when you build your lead database. Gather as much information as you can about your potential customers, including demographics and psychographics. You could discover patterns in your list of leads that guide you to discover more leads.
3. Social Media is the #1 Way to Generate Leads
A 2014 study found that the three most popular online channels for lead generation were search engine traffic, direct traffic, and web referrals to companies’ websites. These three methods accounted for 93% of lead generation. Social media represented just 5% of total lead generation.
Instead, Diversify Your Lead Generation Strategy
While social media isn’t very effective at producing leads, it’s an excellent tool for nurturing leads and developing relationships with current customers.
Many companies have found that email lists, direct phone calls, and even traditional mail are all effective lead generation strategies.
A great low-cost method of generating leads is to add a contact form to your company’s website. Include a call to action on the site to encourage site visitors to leave contact information, which you can then use to generate a lead.
4. One-Touch Contacting is the Most Effective
Some lead generation companies may tell you that it only takes one phone call to discover if a lead is interested in your product. They say that it would be better worth your sales team’s time to contact more leads until they find more that are interested.
Instead, Develop Relationships with Leads
The theory of effective one-touch contact may be utterly false. Salespeople know the value of persistence. It can take time to develop a relationship with a lead. Your sales team may have to make multiple attempts to get in contact with leads before they become customers. The key to success in this case is in the quality of information the salesperson communicates with the client.
5. Your Lead Generation Budget Is the Most Important Factor
Lead generation companies are just like any other company—they want to make money. They may try to convince you that if you increase your lead generation budget, you will have greater success producing leads.
Instead, Focus on Your Process
The most successful companies have a solid process in place that focuses on lead qualification and lead nurturing. These companies are constantly sifting through their leads to find high-quality ones to give to their sales team. The more high-quality leads you can identify, the more sales you will close.
Don’t Believe the Lies
The key to lead generation that translates to sales is to focus on quality leads, and then nurturing those leads all the way to conversion. Don’t let lead marketing generation companies mislead you with their convincing, yet often incorrect, tactics.