December 20, 2011
Last week Carlos Hidalgo, CEO of the Annuitas Group, shared on the Software Advice bloga nice video explaining two basic concepts that are often used interchangeably by vendors and even analysts in the Marketing Automation space but should in fact be treated as separate concepts: Demand Generation and Lead Management.
Demand Generation vs. Lead Management
According to Carlos, Demand Generation has two goals:
- Filling the funnel
- Engaging with prospect throughout the funnel
And Lead management is the process used to ensure there is a link between marketing and sales to prevent leads leaking out, falling out of the funnel.
How About Marketing Automation?
On a second video, Carlos then explains that Marketing Automation will not be the only solution for your demand genreation and lead management, but it can support both processes. It is the technology behind your demand / lead processes.
Marketing Automation basically enables your content to reach your buyer at the right time in the buying cycle.
Nice job, Carlos!
March 24, 2011
Talk to marketing mangers and sales managers about their biggest complaint and you will likely hear “They don’t follow up on leads!” from the marketing guy and “Their leads suck!” from the sales guy. No news there. But why is that this fight on lead quality continues?
According to a recent chart published by MarketingSherpa (below), 80% of marketers don’t spend time qualifying leads before sending them to sales.
What information is required before leads are passed to sales?
It is interesting that back in 2009, MarketingSherpa had published a chart showing the key challenges marketers faced and “generating high quality leads” was the top one. Sales keeps insisting on receiving better leads, marketing knows that is an issue, but still they are not delivering. In their “CMO Perspectives on B2B Marketing Automation” this challenge for high quality leads is shown as having increased from 69% in 2009 to 76% in 2010.
A Gartner Group presentation on allocation of Marketing Budgets for 2011 showed that the top three marketing priorites for this year are:
- Acquire new customers
- Improve customer retention
- Support sales including lead generation programs
If the budget is there, then maybe more companies will be able to finally put some technology in place to help with lead quality, more specifically marketing automation with the goal of improving lead quality. Because the solution to the disconnect facing marketing and sales today is to fix the “lead problem”, once leads are better qualified the two organizations can be friends again.