The following is an excerpt from The Predictable Revenue Guide To Tripling Your Sales:
Do companies really do 80% of their buying research before contacting you? Not for outbound!
there’s a leadgen stat that gets thrown around a lot in the b2b space that goes something like “70% of the buying cycle’s already done by the time you get to talk to a prospect.”
usually it’s used to emphasize how important inbound marketing is, or social media use, etc.
this stat isn’t what frustrates me – it’s how it gets thrown around carelessly.
because often it’s NOT true! it may be…but only for inbound leads. it’s not outbound-generated opportunities, by definition. so call BS the next time you see someone throwing it around like it’s gospel.
(and while it’s fantastic when someone calls you as an inbound lead, they are also calling 5 of your competitors at the same time.)
sometimes with outbound prospecting you’ll run across an active project, but as often you’re going in to help the prospect create a vision and plan for solving their pain.
more often than not, outbound is much less competitive than if they start a project by researching the top 20 options in the space. and so it also takes longer. but outbound deals should be 3x-10x larger than inbound ones, since you’re specifically going after bigger opportunities.
in outbound, you’ll still lose 70-80% of the time, but the lost deals will show “Lost – No Decision” rather than “Lost – Competitor” (as are more common inbound deals.)
i love inbound leads. and i love outbound leads. but there are lies, damn lies and statistics, and it’s easy for companies to take very specific or unique bits of research, and throw them around as universal truths to sell their stuff.
small team, big gravy
you don’t have to invest a ton and hire a huge team, even a small number of outbound reps can contribute another 10% to sales. and even a 10% increase in recurring/Saas sales per year time has a huge impact on your profit & valuation over time because of compounding growth.
anyway, be careful of any stats that get tossed around so casually…sometimes they’re “true” and sometimes they are fantastic marketing spin.
ps – thanks to all of you who had suggestions on people to talk to in brazil! or even who had no ideas or help, but wrote me back anyway 🙂 i head down monday.
unfortunately i’ll be spending half the trip on airplanes, since it’s 3 connections to get down there… ugh. but it’ll give me some time to flesh out the manuscript and table of contents for the full Triple book coming next year…
pps – i always have great intentions of getting work done on airplanes, and sometimes it actually happens. just as often, it doesn’t. maybe the coffee’s too sucky. as often i’m more tired than i expect on the plane, from getting up too early or whatever.