What is the value of lead nurturing?
Lead nurturing has become a hot topic as marketers scramble to convert prospects to sales. With this strategy, a marketer continually reaches out to prospects with relevant, high-value content using the sophistication of email campaign management plus the segmentation power of a CRM database. Lead nurturing drives faster qualification and improved sales channel efficiency. It creates stronger prospect relationships, and accelerates sales conversion.
Recent statistics cited in Marketo’s Definitive Guide to Lead Nurturing show that companies excelling at lead nurturing:
- Generate 50% more sales-ready leads at one-third lower cost per lead
- Reduce the number of marketing-generated leads that are ignored by sales (from as high as 80% to as low as 25%)
- Raise win rates on marketing-generated leads (7% points higher) and reduce “no decisions” (6% points lower)
- Have more sales representatives make quota (9% higher) and a shorter ramp up time for new reps (10% decrease)
In addition, a DemandGen Report says on average, nurtured leads produce a 20% increase in sales opportunities versus nonnurtured leads.
As interactive marketing tools and analytics increase in capability, lead nurturing has become a highly cost-effective way to provide a strong tailwind for your selling efforts. A start-up program typically consists of several pieces of high-value content (white papers, case studies applications briefs etc.) and an inexpensive CRM database integrated with an outbound email campaign manager. Today’s Web-centric buyers may not engage with your sales force until the last third of the purchasing process. Lead nurturing helps maintain your relationship with these buyers throughout the buying cycle.