6 Reasons Your Sales Reps Are The Key To A Great Lead Generation Strategy
Posted in Marketing Strategy on February 15, 2013
One of the best ways for a marketing firm to totally ruin its lead generation strategy is to undervalue its lead generation representatives.
Here’s the problem: These companies fail to realize that the reps frequently are their potential customer’s first impression of the organization. They’re the key to instilling a sense of trust that the organization can address needs.
A recent white paper by The Bridge Group, Inc. highlights metrics about lead generation and compensation for B2B companies.
The study, which surveyed nearly 200 technology firms, took place over four years and finished in 2012. It examined the behavior of organizations as it relates to the relationship between lead generation and sales by asking 23 different questions about topics such as pipeline generation, appointment setting, lead qualification and lead nurturing.
Here is a wrap-up of the top six key findings in the report.
- Most organizations have a lead generation rep for every four sales representatives. Specifically, the report showed that the average ratio from lead rep to sales rep has decreased by more than 20 percent from 1 for every 3.5 in 2010 to 1 for every 4.3 now. This person’s sole responsibility is generating and qualifying new opportunities for sales. The Bridge Group asks if a rep can “successfully support more than four sales partners” and argues that the answer is no. “From an outbound perspective … it is way too thin and their efforts will not have a significant impact on any one rep’s pipeline,” the report explains.
- The report shows that in most instances the outbound lead generation reps answer to the sales department. After a sharp swing toward reporting to the marketing department in 2010, 70 percent of lead generation groups now report to the sales department. This makes sense in light of the fact that the sales department represents their ultimate end-customer. On the other hand, inbound lead generation reps typically answer to the marketing department, as generating inbound traffic is usually under the prevue of the marketing department.
- The report says the average number of dials per day per rep is 56. This is a 5-year high and produces an average of nine conversations per day per rep. Inbound lead generation reps handle a lower volume of calls than outbound reps, but have a higher conversion rate than their outbound counterparts.
- When hiring a new lead generation rep, most companies look for at least two years of experience. The study says this is down 20 percent from 2010 and suggests that “the job itself hasn’t changed, but the hiring landscape has certainly shifted … with demand outstripping supply, companies are moving further down the experience food chain.”
- Most lead generation reps require three months of ramp-up time before they’re viewed as productive. This is down a touch from 2010. The Bridge Group says this shows that it is “harder to qualify an inbound opportunity than perform proactive outbound calling.”
- Most lead generation reps have a base salary and are compensated based on the number of leads that they generate. The average base salary is $47,000 with average earnings at $71,600, which is down slightly since 2010.
Source: The Bridge Group, Inc., 2012