Why You Shouldn’t Fall Off The Bandwagon of Lead Generation

success, strategy, business

Why You Shouldn’t Fall Off The Bandwagon of Lead Generation

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Being at the helm of your own company has many challenges. One of the main ones is balancing client acquisition with work execution. With only twenty four hours available to you every day, it’s always tempting to lean towards the task you find easier or more enjoyable.

For me, that’s usually work execution.

Which means that I struggle when it comes to staying religiously disciplined while generating leads and acquiring new clients.

What usually happens is this: at the beginning of every quarter, I start off with enthusiasm, but then I slow down the process of generating new leads, as I turn my focus towards work execution.

However, this would eventually catch up with me due to the turbulent nature of the market I work in.

What should drive your sales process is actively generating leads rather than relying solely on referrals and upselling to current clients. Also, keep in mind that industry statistics show that 63% of consumers requesting info on your company today will not purchase for at least 3 months, so you need to always stay ahead of the game.

Referrals are usually a good thing as they’re a sign of clients who were satisfied enough to pick up the phone and recommend you to their peers.

But you can’t always count on them.

Also, clients will primarily refer new clients who are at their level of the financial spectrum, which could make you plateau if your aim is to continuously acquire bigger projects.

Focusing on expanding business off of our current client base is another easy thing we tend to do as business owners but it can be very risky.

I learned this lesson the hard way when during the second quarter of 2016, a new marketing director joined one of my top clients. The new head was skilled at pitching for extra budget and within 3 months, the marketing activities we were executing lead to a spike of 40 % in revenues.

However, during the first quarter of 2017, a new regional management team took over, drastically cut the budget, sending our revenues into a nosedive. This sent us scampering and suddenly, we had to ramp up our lead generation machine.

It did not have to happen that way.

The mistake we made there was relying on that account to generate revenues when we could have diversified by acquiring more clients.

Define Lead Generation Goals Rather Than Revenue Related Goals

It is common for salespeople to define revenue-related goals. So when you close enough deals to hit that revenue (even if it’s just from a single client), lead generation takes a backseat.

However, what you need to do is set goals related to lead generation activities:

  • Number of leads reached out to (on Linkedin, through cold calling or referrals)
  • Number of referrals followed up on
  • Lead conversion

How I learnt to set those goals is to use my own team’s historical data to determine the number of leads we need to periodically generate to guarantee growth. For example, in one of our most productive quarters to date, we had 21 leads, followed up on 16 of them, and converting 25 % to business that lead to our surpassing our revenue targets by 49%.

Armed with this information, generating 20 leads every quarter has now been set as a goal so we can plan ahead.

What if you don’t have capacity?

Maybe you shy away from generating leads because you’re worried about converting so many of them into clients that you find it difficult to deliver due to stretched resources. The truth is, you don’t really know your capacity for execution until you’re operating at your limits. One of the quotes by Grant Cardone, the author of 10x rule, “Never lower your target; increase your actions.”

Unless you’re working on a reimbursement system, where you have to put your own resources to run projects before you get paid, new clients can also help you expand your capacity as they come equipped with resources that could help you free up some of your time — e.g. training a new sales team. You’ll never know until you have those conversations with your leads.

Overall, remember that if you’re focusing on growth, you’ll always need to keep your lead generation running in the background



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