Lead generation is an extremely important facet of your business’s sales efforts. Having a team of specialists identify and engage prospective customers or clients ensures that your sales team doesn’t waste precious time pitching to leads who have a low chance of turning into customers or clients. Instead, they’ll spend time building relationships with high-quality prospects whose business will fuel your company’s growth.
As your business is creating it’s lead generation strategy, one of the most critical management decisions that will need to be made is the approach they decide to take. There are three types of lead generation specialists that you should consider: Sales Development Representatives (SDR), Business Development Representatives (BDR), and Account Executives (AE).
While each of these specializations work with lead generation, the focus of each is quite different. SDRs focus on qualifying inbound leads that match up with the company’s ideal buyer persona. A BDR utilizes their time connecting with ideal customers through outbound prospecting methods such as cold calling, connecting via networking websites, and cold email marketing. While each of the previous two positions focus solely on finding leads to pass off to an official higher up the ladder who then makes a sale, Account Executives are responsible for taking care of the entire process from lead generation all the way to closing sales.
Regardless of the approach your company decides is best for the business, each type of lead generation professional can be found within BPO companies that work with lead generation. Even if your company wants to keep its sales department in-house, having an outside company generate your leads can offer your company serious advantages. These are the top 8 benefits your company can gain by partnering with a company that offers lead generation services.
Reduced Infrastructure Spending
Setting up sufficient infrastructure for your business’s lead generation can be a very expensive endeavor. Regardless of whether you’re a small company just starting up or a large business that plans on growing, keeping up with the most innovative technologies while also ensuring your infrastructure is sufficiently large to support your business is going to cost you tens of thousands each year. Partnering with a company that specializes in lead generation allows you to defer the cost of that infrastructure. No costly setup, no expensive upgrades, and no leads are lost due to IT downtime.
A side benefit to saving money on infrastructure by partnering with a lead gen BPO is the added benefit of gaining access to advanced methods and technologies. Since they’re in the business of generating leads, these companies are going to know which technologies provide the most value. Letting industry experts handle your lead gen ensures that you don’t throw cash in the wind by using dated or unintuitive programs and methods. Why waste time and money on trial and error when you can better utilize those same resources to gain insights from experts.
It Allows Your Specialists To Thrive
If your company doesn’t currently have the staff or resources to create a dedicated lead generation team or department, it can be tempting to assign lead generation tasks to your salespeople or your marketing team. What may not be immediately apparent is that this will cause a decrease in the quality of work produced by your specialists. This quickly becomes counterproductive and is detrimental to the overall success of the business.
Outsourcing your lead generation ensures that your specialists continue producing high-quality work in their area of expertise. There’s no advantage in stretching your teams so thin that they can’t perform any of their tasks at a high level. A wiser strategy would be to outsource your lead gen to a company that specializes in the field and has the means to complete the work efficiently while providing your company with the results it needs.
Reduced Staffing Costs
This one is a no-brainer. Staffing an in-house lead generation team is expensive. Especially as the industry has progressively moved towards paying commission/bonuses on top of a standard salary. The average salary for a lead generation professional is right around 50k a year, which means that every two professionals you hire in-house is going to cost your business 100k if you’re paying at the industry average.
Outsourcing your lead generation services will significantly reduce the cost of staffing for your company. Based on current demand, the lead gen industry has largely moved over to a flat-rate fee structure. BDR and SDR services are the most common lead generation services being offered right now, and both come at a significantly lower cost than hiring in-house.
Outsourcing BDR services to a near-shore BPO will run around $3k per month in addition to $10 for every appointment set. Meanwhile, SDR services cost around $3500 plus $15 for every qualified appointment. Outsourcing Account Executives, on the other hand, comes at a higher price tag because they take care of the entire sales cycle. AEs start around $4500 a month with a minimum of $100 commission for each closed-win. This is the least common position outsourced for lead generation due to their higher cost. However, when partnering with an on-shore BPO you can expect to pay a minimum of $6000 a month—before commissions—for the SDR and BDR roles alone. That’s 33% you could be saving by partnering with a nearshore BPO.
While the way we do business is rapidly changing, the age-old adage still rings true: Time. Is. Money. No matter how you approach it, lead generation is a time-consuming process. This is a double-edged sword because while the time investment required for lead generation can certainly provide impressive boosts in revenue, it can also become a time drain that consumes your resources. You only have a limited amount of time in the day, and that time is best spent expanding your business and building up teams to push your innovation forward.
Outsourcing your lead generation allows you to remain focused on your core business objectives and competencies. BPOs have already built teams of experts who are ready to send high-quality leads down the sales funnel. Let us take care of lead generation so you can utilize your time to push your business forward with ever-improving products and services.
Unless your company has a dedicated lead generation department, it’s safe to say that a company specializing in the service is going to have access to an ample number of resources that in-house teams don’t. While better tech definitely counts towards better resources, there’s one specific resource that deserves to be spotlighted: databases.
Building an effective lead database is time-consuming and requires that you have experience in gathering quality leads. If this is something your internal team doesn’t already have experience with, they’re going to be spending a significant amount of time in the learning phase. Companies with experience building these databases already have the knowledge, tools, and standards of practice set in place to create databases with prospective clients who fit your buyer persona.
Instead of building your lead database and your lead gen. standards of practice from scratch, you can use your resources more efficiently by enlisting the support of an outside team. When you outsource your lead generation, you’ll have an efficient, high-quality lead database created for your company much quicker than you would by building it in-house. Companies such as ours have access to a wide assortment of customer databases that we use to quickly provide your company with leads that will turn into closed-wins.
Reduce Your Turnover
In general, sales departments have really high turnover rates. Since lead generation is an integral part of your sales teams it’s a logical conclusion that this will impact your lead generation team as well. Forbes reported in 2016 that within the first year of employment, sales departments were experiencing a turnover rate of 34%. They go on to explain that this issue is compounded by the fact that companies only get 3-6 months of useful development out of these employees due to long onboarding processes.
For your company, this high turnover rate means lots of lost time and money. Outsourcing allows you to negate this risk. Instead of wasting resources on hiring employees who have a high likelihood of leaving the company within their first year, you can outsource the service and start paying for results instead.
A Fresh Perspective
Outsourcing your lead generation allows you to take a step back from your product. Day-in and day-out, your teams are working closely with your products. You know the ins and outs of your products like the back of your hand. This can be detrimental when you’re looking to grow because you may adopt the mindset that your prospective customers already know who your company is and what you’re all about.
If lead generation and sales are approached with this mindset, it can lead to a more jarring customer experience. Even if your reputation is already established, your prospective customers don’t know everything about your product and need to be convinced that your company provides the most value.
By allowing an outside team to handle your lead generation, the people funneling leads and fostering potential customer relationships are going to have a deeper understanding of the journey customers are going to embark on while learning about your products. Why will they understand this better than an internal team? Because they’ve been through that learning process themselves. This means they can create lead generation content that is more impactful for individuals who are interested in your products but don’t understand them in their entirety.
Break Into New Markets
Adding a fresh perspective also gives you the opportunity to expand your reach into new segments of the market. When creating your ideal buyer persona, it’s possible to narrow your efforts down too much. If this happens, you’ll wind up inadvertently creating a sales bottleneck that can restrict sales and subsequently growth.
An outsourcing company offering lead generation services will be able to provide you with valuable insights into similar market segments where your products and services can thrive. If your buyer persona is too narrow, they can give suggestions to widen your customer base and boost growth. These BPOs will have access to data that shows the interests and behaviors of high-quality leads. They can use this data to determine other customers who are likely to be interested in your product even if they fall outside of the scope of your ideal buyer persona.
How ProximoCX Can Enhance Your Lead Generation Efforts
When ProximoCX is powering your lead generation efforts, your company can expect to see an increase in high-quality leads and a decrease in its CPL. Our nearshore sales development representatives and business development representatives are trained to discover leads that result in new customers while also looking for opportunities to expand your existing customer relationships. Our representatives utilize innovative technologies and comprehensive data to identify the characteristics of customers who are likely to purchase your products long term.
Time is money, and we can provide your company with the tools it needs to save in areas critical to lead generation support. We take care of the infrastructure and staffing, so you don’t have to. You don’t need to spread your existing teams thin, spend valuable time and resources on building infrastructure and new teams, or settle for BPOs with a high CPL. At ProximoCX we’re committed to your success because when you thrive, we thrive.