Harvesting the Value of Long-term Leads

Your sales team loves receiving leads with a high probability of closing soon. To their detriment, they often ignore longer-term opportunities.

It is not only possible, but highly likely that long-term leads are more valuable than short-term leads. Here’s why:  

1.     Too late. A decision has already been made and you are not the winner.

The shorter-term the opportunity the more likely it is that another vendor has been unofficially selected and you are being invited in as column fodder in a deal won by a more agile competitor. The buyer indicates a short buying cycle, but they are really seeking to validate a decision that has already been made.

Longer-term leads lack urgency, but gives your team a very real chance to form relationships with decision makers, and to define and manage the process. This is an advantageous position to be in—and one that leads to more deals closing and a reputation as the go-to resource in your category. 

2. Longer-term opportunities increase marketing ROI.

All leads receiving the effective attention from sales will result in more revenue for the same dollars invested in marketing. Being a good lead steward can triple the return on any marketing campaign.

Here’s an example: Marketing spends $50,000 to generate 40 leads. Half are short term, and half are long term. If the 20 long-term leads are not followed up on simply because they’re a buying cycle or two out, $25,000 (half of the total spent) is wasted. If on the other hand, all 40 are worked appropriately, and sales closes 20% of the total, revenue is doubled. The incremental cost of nurturing longer-term leads to fruition is peanuts compared to the cost of generating that lead.

 3. Leads at every stage of the buying cycle are essential for a healthy pipeline.

While sales rewards marketing for generating “hot” or short-term leads, for predictability and consistency, you can’t count on just one type of lead in the pipeline. For simplicity this blog segments leads into just two buckets, short-term and long-term. The reality is there are short-term and long-term leads, Qualified with No Interest, Qualified Unknown, No Response and Other. Staying in touch over time using the right resource to deliver the right message at the right time will ensure that your company is short-listed when a decision is eminent.

Visit this blog for more information including the math behind my statement that effective coverage of leads will triple the return on your marketing investments.