Outsourced b2b Lead Generation gives 43% better results than In-House

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Using outside professionals to help your company implement B2B lead generation gives 43% better results than hiring your own person. Case closed!

So many firms try to do b2b lead generation in-house, (Just do a search on Linkedin for “lead generation” to see how amazingly popular it is.) it’s useful to share some facts from NNC Services white paper which did a great job of comparing in-house and outsourced b2b lead generation. (Click the link to see the original post.)

There are some challenges and problems they found with in-house lead generation:

  • Lack of follow-up on events and telemarketing — in-house resources are rarely, if ever able to follow up on a consistent and effective manner. For instance, one company we know very well did a very popular webinar and shared the recording. But they failed to use the “Rule of Five” as espoused by B2B marketing expert Ardath Albee. Failing to split the audio for a podcast in iTunes, do a video interview in YouTube, narrate a PowerPoint and post it to SlideShare, create an e-book, write and post blog articles, etc. meant they missed many content marketing opportunities. Opportunities like this are far too valuable to waste.
  • Feedback from the market is not used – A deep understanding of customers is needed for effective BtoB lead generation. These are called Buyer Personas. But in-house resources almost never do the level of research needed for optimal results. For instance, a lot of software companies sell to Chief Information Officers, but a CIO study found three archetypes with three different goals, requiring three different content approaches.
  • Incorrect targeting — Not talking to the right level means poor results. However, most in-house resources stop their research when they find an interested executive. Often this lower level executive is a dead end.
  • Using a unique channel – This is one of the biggest problems with in-house b2b demand generation. They tend to rely on single tactics, such as email campaigns or telemarketing. Since everyone else is doing the same thing, there’s too much noise to be heard and few leads emerge.
  • Leaving it to the team’s junior – Leaving the activity on the sales team’s newcomer is one fatal mistake since the time spent in inappropriate meetings with the wrong prospects often results.

If there are problems with doing b2b lead generation in-house, what are the advantage of bring in an outside firm who are experts in lead generation – like Find New Customers?

This white paper makes the point that you do not get more leads from outsourced b2b lead generation, but you get much better leads that are likely to close. After all, closed business is what we all need.

Here is why:

  • Clear client profiling. (Buyer Personas) Lead generation experts use multiple methods to find out every bit of useful information about a prospect and to draw out a complete picture: likes/dislikes, need and behaviors. These specialists also understand how customers buy, so they translate your selling process to the customer’s perspective.
  • Correct Targeting. Outsourced experts ensure you talk to the person(s) who make the buying decision — through deep research.
  • Qualified Leads. You don’t waste time on a meeting with someone who hasn’t expressed a clear need for your products or services, or who lacks the budget to purchase them. You only get meetings with people who understand what you are selling, need it and can afford to buy it.
  • Follow-up and feedback. All opportunities are followed up until they become qualified leads or are determined not to be valuable. Also, the outsourced lead-gen team has the ability to use market feedback to get more leads.
  • Multi-channel approach. A good lead gen partner will use a complex mist of lead generating channels — including networking, online and off-line, as well as social networks. This significantly improves the results of the campaigns.
  • More confidence. It takes 6 months to a year to consider if an in-house team member is qualified and producing results. By comparison, you can usually evaluate an outsourced lead generation resource in a month or two.

Conclusions:

An outsourced b2b lead generation partner can can deliver better sales leads than you can, at much lower cost, with reduced risk and increasing your opportunities for improved fiscal results. 3 months of b2b lead generation outsourcing brings you the same results as 12 months of in-house lead generation.

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7 COMMENTS

  1. Jeff, great post – sad but true. Internally, the focus is more on generating quantity but the external sources know that they will be held to a higher standard so they focus on quality.

  2. I agree! Alsoin today’s market it is more important to focus on who you are targeting vs the amount of targets. In pay for performance environment, the old days of “throwing a dart marketing” are all but over.

    At Rhino B2B Telemarketing, we try to have a weekly strategy meeting with client’s and agent’s to discuss what lead verticals are working. We then can aim more effort in that direction.

    We have some good tips for cold calling located on our website at:
    http://www.rhinotelemarketing.com/cold-calling-tips

    Mike Walters
    Tech Project Manager
    Rhino B2B Telemarketing
    http://rhinotelemarketing.com

  3. While I don’t necessarily think the entire outsourced sales industry is inept, we had used a company called SalesStaff, LLC (aka ProSalesStaff.com, MedSalesStaff.com, SalesStaff-IT.com, SalesStaffTech.com, SalesStaff-SCM.com, MerchantConnX.com), which is led by David Balzen & Bryan Brorsen and they failed miserably for us. It was by far the worst experience with outsourced lead generation / B2B demand generation we ever had and would never recommend using them. The telemarketing callers they used were inexperienced, their “QC team” provided us with incorrect lead details that made us look terrible when we tried to follow-up, and when we finally asked for our money back because they clearly couldn’t deliver on their lead guarantee it was like pulling teeth to get them to even admit that there was anything wrong. Maybe this isn’t a common experience for others but it sure was painful for us. We’ve gone back to doing things in-house for now.

  4. Sorry to head you had a bad experience with your outsourcing company. Certainly there are some very good ones out there.

    Interesting, but DGReport said today that 85% of marketing automation purchases are way less than optimal. I’ve seen than with my own eyes.

    I think you need to shop more carefully, rather than indicting a group of b2b demand generation experts.

    Check out PointClear, Bluebird Strategies and my own firm Find New Customers please.

    Jeff Ogden, President
    Find New Customers
    http://www.findnewcustomers.com

    Host of Marketing Made Simple TV
    http://www.marketingmadesimple.tv

  5. Outsourcing your lead generations to external company means giving the responsibility to professionals that have the right tools, knowledge and plan to deliver leads that have far greater chance to turn into contracts.

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