As the pressure to grow increases, so too will the pressure on your team to generate new leads. The problem with this rationale is that it puts an unfair emphasis on quantity over quality, which unnecessarily increases the cost of acquisition. To give an example; imagine a typical sales process with four steps (consideration, evaluation, selection and negotiation). At each step, 50% of leads are lost. Generating one lead costs £10, and a further £10 is spent at each step (in terms of sales team time). Here’s an example for 100 leads:
By improving the quality of leads acquired (largely through a better understanding of buyer personas) the conversion at each stage is improved. The example on the right shows the effect on the cost of acquisition following a 20% improvement at each stage which ultimately represents a 42% decrease in the total cost of acquisition, bettering unit economics and accelerating growth.
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