How much is 26% of your marketing budget? Got a rough estimate in your head? Great! Well, be prepared to lose it in 2021 because 26% is the average each company wastes a year on marketing, according to a study done by Rakuten Marketing.
With the cost per lead (CPL) for B2B lead generation hovering around $130, you can’t afford to throw away over a quarter of your budget. We understand that marketing is a strategy that requires constant testing and tweaking so some of the budget must be sacrificed in the name of a/b split tests. But there are ways to mitigate loss with proper targeting and nurturing. So let’s go over some cold hard facts that explain where 26% of the marketing budget is going.
Targeting the wrong people in ads, email campaigns, social outreach and canvassing can really cause some damage. Laser-focused targeting based on demographics and behaviors can save your sales team time, improve your marketing efficiency and reduce your CPL. This is especially important in B2B lead generation as you will generally have 6 decision makers, on average, to work with on a potential sale. This probably explains why 64% express that B2B targeting is a top challenge for their company. However, simply making contacting the lead is an important step in qualifying marketing efforts, but seems to pose another significant challenge for many companies. Let’s find out why.
In sales, there is a 5 minute follow up rule. If your sales team isn’t making an attempt to contact the lead within 5 minutes of showing interest, then that salesperson is 100x less likely to make contact. But here lies an opportunity as 63% of salespeople wait longer than an hour to reach out to a lead. Make following up with a hot lead top priority. And hey, if the first attempt doesn’t succeed, keep calling, at a respectable cadence, because it takes about 7-8 calls to finally get in touch with most prospects. Which will bring us to the next point.
Well, that’s not good! In fact, 1.3 calls are the norm when it comes to following up with a lead before someone tosses that $208 prospect in the abandoned pile. But again where others fail you can succeed 98 and 3/4 percent guaranteed (thanks Dr. Seuss for believing in us)! Be the other 56% that doesn’t give up after one phone call. Set a call cadence with the help of the marketing team. Make it coordinated with drip campaigns to give it that omnichannel approach you’ve been hearing so much about lately.
That’s a lot of statistics packed into a short blog. What’s really important here is that you recognize where the processes are broken and what you can do to fix them. This alone can save thousands of dollars a year and increase your company’s ROI.
If the sales team is lagging behind in response times then work on reducing that time so you can verify that the prospects are your ideal client profile (ICP). If your sales team is crushing the follow-up but the leads are not right for your products and services, then work with marketing to refine targeting by modifying the behaviors and demographics. You may even need to create several different buyer personas to really dig deeper and connect with different types of prospects on a more personal level. (Trust me your marketing department will thank you!)
One thing is for sure, settling for the “average” is not an option. Make each marketing dollar count by refining your processes and encouraging sales and marketing to work closely on related goals. Keep in mind that “Only 35% of marketers said that understanding the ROI of their campaigns is “Very Important” or “Extremely Important.” according to HubSpot’s Marketing Statistics. Make it a priority to work as a team without silos of information and watch your conversion rates soar.