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Who Should Own Lead Generation? And Who Should Run It?

Posted by Trish Bertuzzi on Thu, Feb 05, 2009 @ 11:26 AM
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On a regular basis, we are asked:

  • Where should lead generation Reps report - Sales or Marketing?
  • What level of management should I consider for my team?

We took these questions to the market in our 2009 Lead Generation Metrics & Compensation Report and the answers are below.  Note: The report is based on surveys of 125 North American technology companies.

Do lead generation groups report to Sales or Marketing?

2009 Findings: 74% of groups report to Sales

Organizations are increasingly putting the Lead Generation function under the Sales umbrella. 

We believe this transition is occurring as the role evolves:

  • From qualifying inbound leads & setting meetings
  • To taking more ownership of the front end of the sales process                          

This includes:

  • account research
  • account mapping
  • preliminary needs analysis
  • preliminary interest development

 

What is the title of the group's direct manager?

Here are some rules of thumb to employ when thinking about what level of management to add to your organization:

  • Team Leader
    Never. This is a losing proposition.

    A Team Leader is someone who has two (2) full time jobs and has been set up to fail.
    They can't do both roles well so which one suffers? In actuality, both do.


  • Manager
    Works great for a small group. No more than 6 Reps.

    You should hire a Manager when you have an effective process in place and you are looking for someone to "manage" it and the Reps for you.
    Managers do not have the experience to design process, evolve strategy and messaging or think about ways to reduce expense and increase productivity.


  • Director
    If you have a group of 6+ Reps, you may want to consider a Director. Directors can also manage up to 3 Managers.

    Directors do have the experience to create process, evolve strategy and messaging and think about ways to reduce expense and increase productivity.


  • VP of Inside Sales
    If you have an organization of 20+ Reps, you should hire at the VP level. This is especially true if the Reps are quota carrying.

    The basis for hiring at the VP Inside Sales level is no different than it would be for Field Sales.  You need a person who can think strategically and execute tactically.


These are just rules of thumb. There are many variables that can impact your decision.
The good news is that Inside Sales is a great career and there is much talent in the market.  You just have to find the person who is right for your organization!

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COMMENTS

I really appreciate the data on lead gen management. As a former "team leader", I totally agree. 
 
Wearing 2 full-time hats makes one a "master of none." Thank you. 
 
Chuck

posted @ Friday, February 06, 2009 7:03 AM by Chuck Richard


No matter what organization the "Lead Qualifier" reports up to it's important that the marketing and sales team agree on one thing... Creating and identifying opportunities that can enter the funnel and ultimately generate new customers. 
 
Being a sales leader I'd prefer them to report up to me because of the additional tasks a person in that role can focus on.  
 
Managing the sales funnel is challenging today because prospects can get a lot of information about your company without ever having to speak with a person. I'd be interested to learn what strategies are being used to identify those prospects who are "shopping" but are not directly engaged... 
 

posted @ Saturday, February 07, 2009 2:19 PM by Keith Haughey


Keith,  
 
Like everything in sales funnel management, it's all about people, process and technology. Every company is challenged in understanding when to ask a prospect for information about themselves on the website. Will asking them to fill out a form too early in their search, force them to leave the site? When do you ask them to fill out a form identifying themselves? Before you give them anything, before they download information, length of time on the site, when they have drilled down to a certain level? 
 
Your webmaster should be able to give you reports on website traffic. Once you discover how prospects are navigating your site and what they do before they leave, then you can begin to figure out how to solve the problem.  
 
If you see a significant amount of your 'target accounts' visiting/shopping but never getting into your funnel -- then you need to look at the content of your site and what's turning them off.  
 
However, you may be lucky and find out that the last page they visited was to get the phone number of your company and they are on the phone with one of your reps right now!  
 

posted @ Monday, February 09, 2009 12:23 PM by Jeanne Lambert


Keith, we get this question a lot. I am beginning to think we need to implement the crazy notion of actually asking the prospect a direct question. On the lead form you could consider the following: "On a scale of 1 to 4 with 4 being highly likely, how likely are you to purchase a (insert appropriate language here)solution within the next 6 months?" Now, you may or may not get the real answer but for the times you do - you are ahead of the curve. Combine that filter with one that runs them against your Ideal Customer Profile and you should be in pretty good shape. What have you got to lose?

posted @ Friday, February 13, 2009 8:41 AM by trish bertuzzi


Marketing Should Own It AND Run It 
 
 
 
1-Sales and marketing should agree on the definition of a "lead" - I like to call leads "respondents" because they are not ready to be pitched 
 
 
 
2-Marketing is charged with generation: get people engaged.  
 
 
 
3-Marketing is charged with nurturing to a buying stage: most respondents are looking - not buying (of course this applies mostly to large ticket item, services). When is the last time you did NO research, logged on to CA and bought a malware solution without investigating many things first??? 
 
 
 
4-Marketing delivers only what has been agreed upon 
 
 
 
* Sales should agree that quality rather than quantity would be the result, and that a system for tracking activity of sales on follow up activities also is included in the measurement. Too many times the phrase "we don't have enough leads" is the whined. Well - there's a reason: marketing should be busy identifying, qualifying and nurturing. Not everyone is in a buy mode - some are at the early stages. Be patient. 
 
 
 
Sales is a tough job (which is why you make the BIG $): sales can sell without marketing - marketing has no business marketing without sales. 
 
 
 
Let's get over the chicken/egg thing and learn that we need to engage and educate prospects, not just hit them over the head because they visited our site or downloaded a sales sheet.

posted @ Wednesday, February 25, 2009 10:29 AM by Jim


Bravo, Jim. Well stated throughout. 
 
 
 
Implicit in all of this is a top-down environment of shared responsibility and shared goals and objectives. If your corporate leadership divides you into competing silos, you'll get more friction than useful results.  
 
 
 

posted @ Thursday, February 26, 2009 1:58 PM by Steve Kirstein


Interestingly, at a recent B2B event in London, I heard from a Salesforce.com marketing lead, and their answer was 'neither'. Lead Generation/Lead Management sat between the two, and was managed independently. 
 
 
 
An idea that has some merit.

posted @ Thursday, June 11, 2009 12:29 PM by Will Schnabel


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