B2B Lead Generation Metrics: Which is More Important Lead Quality or Lead Quantity?

Sep. 30, 2010

Lead Generation, quality vs. quantity A recent study by the Lenskold Group, a marketing ROI and measurement firm, called “2010 Lead Generation Marketing ROI Study,” has come out with some new statistics on how marketers measure their lead generation efforts.

The study, which surveyed B2B marketers, includes some interesting findings on marketers’ best practices for measuring their lead generation efforts. Some of the study’s findings were that:

Marketers who felt they had sufficient insight to estimate the potential profit from lead generation stated that 6 in 10 expect a profit increase greater than 10% while using effective lead generation tactics. However, almost 44% of marketers feel that they lack insight into the potential profit of lead generation.
58% of marketers believe that their highest potential for profit lies in nurturing leads which have stalled during the buying process.
Lead quantity continues to be the favored measurement over lead quality with B2B marketers.
The top measurements for lead quantity and quality are as follows:

Lead quantity based on the number of leads generated – 67%
Lead quality based on sales conversion rates – 53%
Lead quality based on customer revenue generated from initial sale – 38%
Lead quality based on sales acceptance – 33%
Lead quality based on total customer revenue over time – 32%

Clearly the question of whether quantity or quality of leads is more important is still a struggle for many B2B marketers. While there are many more metrics used to measure quality, the top metric to judge marketing teams’ success is still based on lead quantity.

Of course the best lead generation practice is to develop a strategy that balances lead quality and quantity. The bottom line is that while marketing may want a large, steady flow of leads, sales wants fewer, quality leads that generate revenue and become customers. So how can you determine when developing your lead generation strategies the fine line between lead quantity and quality? Testing. With every lead generation tactic you implement from website form fills, to webinars, you need to test your initiatives to try and find a happy medium between the quantity and quality of leads they produce.

Unfortunately, there is no one-size-fits-all choice as to whether your team should be measuring quality or quantity of your leads. Your choice for what to measure, or which direction you want your lead generation strategy to take should be based on your industry, your audience, and many other factors. Understanding your company’s business strategy and how your leads align with this will help you choose the most effective path for your lead generation to take.

Posted by Amberlie Denny at September 30, 2010 8:00 AM

Comments

Rhino Telemarketing

Quality leads are always of the most importance, the key is qualification.

Lead Generation Quality

Surely it's revenue generated over cost of acquisition right?

100% agree on testing. If you are not split testing extensively you are leaving money on the table.

lead generation

Hello! Very Interesting posting of lead generation metrics ! Thank you for such interesting resource! PS: Sorry for my bad English, I've just started to learn this language.