Why did the lead generation chicken cross the road? To find better quality leads on the other side!
Jokes aside, as a business owner or marketer, you know the frustration of putting in time and effort only to see your lead generation strategies fall short.
In this article, we'll explore ten common reasons why businesses fail to acquire enough leads. We’ll also look at how leveraging a CRM system like NetHunt CRM can help you overcome these challenges and significantly improve your lead generation process.
Read on to discover the key factors that might be holding your business back, and how to address them effectively!
10 reasons your business doesn't have enough leads
Heads up: You might have thought this article was solely about figuring out why your business struggles to generate leads from scratch.
The reality is that inadequate lead generation practices are just one side of the coin. The other side is the challenge of retaining newly-generated leads long enough to guide them through the sales funnel.
Ultimately, leads lost early in the process are still leads your business misses out on.
Here comes our explanation of what's causing your lead generation setbacks!
Inadequate lead generation channels
Businesses often find it tricky to generate enough leads because they rely on too few lead generation channels.
By not spreading their approach across different avenues, companies miss valuable opportunities to connect with their target audience. As a result, they see a dip in their overall lead volume, making it difficult to reach sales targets and achieve business growth.
It's essential to explore a variety of lead generation channels, such as…
- Content marketing
- Social media
- Paid advertising
- Email marketing
Multiple channels can boost your exposure to potential customers, increasing the chances of generating high-quality leads.
Wrong lead generation channels
Another aspect of inadequate lead generation channels is investing in the wrong channels.
Businesses can identify the best-performing channels through CRM data and focus on them, ensuring a more efficient and effective lead-generation strategy.
A CRM system like NetHunt CRM enables omnichannel communication, consolidating communication channels such as messenger apps, chat, webforms, social media, phone, and email.
A centralised approach allows businesses to quickly identify and manage the most effective lead generation channels, providing a comprehensive overview of each channel's performance and enabling data-driven decision making.
In addition to omnichannel communication, NetHunt CRM offers features that can help with managing lead generation channels…
- Visualise key metrics and insights in one place for better decision-making
- Automate routine tasks to save time and improve efficiency
- Gain insights into channel performance and trends with in-depth analysis
- Connect your CRM to various marketing tools for seamless lead management
- Organise leads based on their source, preferences, and other criteria to tailor marketing
For more insights on lead generation, make sure to check out our ultimate guide to lead generation
Email marketing neglect
Email marketing remains a powerful tool for generating leads. According to the DMA, the average ROI for email marketing is $36 for every $1 spent.
If your business isn't leveraging this channel or hasn't updated its email marketing strategies, you’ll miss valuable leads.
Here are some warning signs to look out for when trying to identify whether your email marketing strategy is struggling…
- If your email recipients don’t open emails, it’s a sign that your subject lines aren’t up to scratch
- A high number of unsubscribes indicate that your content is not meeting the expectations of subscribers, or that you are sending emails too frequently
- If subscribers are opening emails but not clicking on the links, it means that your content is not compelling or not well-targeted enough
- If your email campaigns are not leading to increased sales, sign-ups, or other desired outcomes, it may be time to re-evaluate your email marketing strategy and tactics
To ensure that your email marketing efforts are practical, consider…
Keeping up with email marketing trends
Stay informed about the latest trends in email marketing, such as personalisation, automation, and mobile optimisation. You can improve engagement and conversion rates by adapting your strategies to current best practices.
Performing A/B testing
Experiment with different email content, subject lines, and layouts to determine what resonates best with your audience. Regular A/B testing can help you refine your messaging and increase the overall effectiveness of your email campaigns.
CRM is a valuable asset in email marketing efforts, helping automate email sending, tracking open and click-through rates, and segmenting your audience for targeted messaging. By incorporating a CRM into an email marketing strategy, you ensure you're making the most of this powerful lead generation channel.
For further insights and tips on optimising your email marketing strategy and generating more leads, we recommend exploring our blog posts on…
➡️ How to write cold emails that get responses
➡️ Sales experts share what makes leads read and reply to cold emails
An undefined ideal customer profile and buyer persona
Another stumbling block when generating leads is not clearly understanding your ideal customer profile (ICP)CP and buyer persona.
While an ICP outlines the key characteristics of your perfect customer segment, a buyer persona dives deeper into the specific attributes, motivations, and pain points of individual customers within that segment.
Only by defining both can you target the right audience and effectively generate higher-quality leads.
With well-defined ICPs and buyer personas, your business saves time and resources on leads that align with your products or services, resulting in higher conversion rates.
To create a solid ICP and Buyer Persona, dig deep into existing customer data and identify common traits among your most successful clients.
Look for clear trends in your clients...
- Company size
- Job title
- Common pains that your customers are experiencing
Once you have a clear picture of your ICP and buyer persona, tailor marketing and lead generation efforts to attract the right kind of customers and boost your chances of successful conversions.
A CRM system can be a powerful ally in defining and refining your ICP and Buyer Persona. It centralises and analyses customer data to spot patterns and trends among your top clients. With this invaluable information at your fingertips, you can effectively target lead generation campaigns and ensure your sales team focuses on the most promising prospects.
If you'd like to learn more about the benefits of defining ICP and buyer persona, and how a CRM can support this process, look at our blog post, How to define your buyer persona to boost sales.
Lack of valuable content
A lack of valuable content is detrimental to lead generation efforts.
Valuable content addresses your target audience's pain points, provides solutions, and offers insights that resonate with them.
To determine if your content lacks value, consider these questions…
- Does your content address the concerns and needs of your target audience?
- Does it provide practical advice or solutions to their problems?
- Is the content presented in an interesting and easy-to-understand manner?
- Is the information current and accurate, reflecting trends and industry insights?
- Is your content unique and not just a mock copy of your competitors?
If you answered “yes” to these questions, your content is pretty sleek. If there are some ‘no’s in there, you might want to refine your content strategy.
You would likely be drawn to content that checks these boxes, providing useful information that helps make informed decisions.
By focusing on your prospects' specific needs and pain points and demonstrating the value of your products or services, you can effectively generate and convert leads.
To ensure you're offering value through value-based selling, follow these steps…
- Start by understanding your prospects' needs, challenges, and desired outcomes
- Tailor sales and marketing messages to demonstrate how products or services can address those needs and deliver tangible benefits
- Emphasise unique selling points and show how they can provide a higher return on investment compared to competitors.
A CRM allows you to centralise and analyse customer data, helping gain insights into your prospects' preferences and needs.
With this information, you can tailor your sales pitches and marketing communications to deliver maximum value and resonate with an audience.
As a result, you'll increase the chances of successful lead generation and conversion.
To discover more about value-based selling, check out our article.
Weak lead magnets
50% of marketers that use lead magnets have reported an increase in conversion rates since their implementation.
Businesses that don’t offer any lead magnets are missing out on a significant source of leads.
If you’re still new to lead magnets, the first step that you should be taking after reading this article is to create your very first lead magnet.
However, if you’re no stranger to lead magnets, and yet struggle to pique the interest of your target audience and convert them into leads - your lead magnets might be weak and ineffective.
Here are a few signs that your lead magnet might be weak…
- Few visitors are signing up or downloading your offer
- Visitors leave the page quickly without engaging
- Little interaction with the lead magnet content (e.g. low read or view rates)
- Users express dissatisfaction with the content or its relevance
- Leads generated don’t match your Ideal Customer Profile
To create strong lead magnets, consider your target audience's pain points and interests. Develop resources such as…
Ensure your lead magnets have the right names, are easy to access, visually appealing, and promoted through relevant channels to maximise their reach and impact.
Using a CRM, you can automate lead capture from your lead magnets to ensure no lead falls through the cracks.
NetHunt CRM lets you create web forms and automatically capture the leads that fill them in, meaning human error or oversight is simply not an option.
A CRM system can be an invaluable asset when managing and optimising lead magnets. Here's how a CRM can help…
- Track lead magnet performance: Monitor download rates, sign-up rates, and lead conversions to identify the most effective lead magnets
- Refine your strategy: Use performance data to improve your lead magnets and target the right audience
- Nurture captured leads: Engage and convert leads captured through lead magnets into customers more effectively
Check out our guide on creating lead magnets if you want to find out more about this topic.
Poor sales team training
Your sales team has been reaching out to potential customers but struggles to make meaningful connections and close deals.
They put in the effort, but the results just aren't there. You can't help but wonder if inadequate training is the underlying issue.
An untrained sales team may struggle with effective outreach, building rapport with prospects, and ultimately converting leads into sales.
Some indicators of an inadequately-trained sales team include...
- Low lead conversion rates, which may suggest that your team's outreach and closing strategies are not effective
- A less-than-impressive value of closed deals, implying that your sales team might not be targeting high-quality leads or negotiating well
- Inability to get past the gatekeeper when cold calling or the inability to hold the callees attention
- A limited number of calls, emails, and meetings conducted by your sales team, raising questions about their overall productivity
Sales departments should invest in comprehensive training that covers essential sales skills, techniques, and best practices.
Sales team coaching is a particularly effective method of enhancing your team's skills and ensuring their success. Additionally, if you're managing a distributed sales team, they require unique strategies and support to ensure seamless collaboration and effectiveness.
Provide ongoing support and resources to help your team stay up-to-date with industry trends and refine their sales approach.
Encourage a culture of learning and development within your sales team, and regularly evaluate their performance to identify areas for improvement.
A CRM system can support your sales team's training and development. It allows you to…
- Automate routine tasks like follow-ups and lead distribution, enabling your sales team to focus on generating leads
- Monitor your sales team's progress with report generation functionality to identify areas where they may need additional support
- Facilitate collaboration and knowledge-sharing within the sales team, fostering a culture of continuous improvement.
By investing in your sales team's development, and leveraging CRM tools to support their growth, you enhance their ability to generate and convert leads.
For more insight on sales team coaching, managing a distributed sales team, and how a CRM can support your sales team's training and development, check out the following blog posts…
➡️ Effective sales coaching: Interview with Donald Kelly
➡️ How to use CRM data to coach your sales team
➡️ The best 8 sales training programs for sales reps
Inefficient networking strategies
If you don’t network at industry events, conferences, or online, you miss out on valuable connections that could lead to potential leads and referrals.
Some signs that your salespeople need to improve their networking skills are…
- Can't quickly establish a connection with new contacts or find common ground
- A small network and doesn't engage in regular networking activities
- Consistently failing to follow up or maintain relationships
A strong networking strategy is essential for sales success in today's competitive business landscape. To improve your networking efforts, consider these steps…
- Establish specific objectives for your networking activities, such as the number of new contacts you want to make or the leads you aim to generate
- Identify your industry's most relevant events, platforms, and groups, and focus your networking efforts on these targeted opportunities
- Approach networking with a long-term mindset, building meaningful connections rather than just collecting business cards
- Ensure your company and sales team have strong online profiles on platforms like LinkedIn, making it easier for potential leads to find and connect with you
A CRM suite is invaluable for managing and enhancing your networking efforts. With a CRM, you can…
- Store new connections and their details in a centralised database
- Schedule reminders to reconnect with your contacts after networking events
- Evaluate the success of your networking activities by tracking the leads and referrals
To learn more about effective sales networking and how a CRM can help you make the most of networking opportunities, check out our blog post on how to ace sales networking.
Inefficient lead scoring
Picture a situation where you receive numerous leads, but most of them are unqualified, resulting in your sales team squandering their time and resources. This can occur when your lead scoring system is inefficient.
An inefficient lead scoring system is characterised by:
- A lack of clear criteria for evaluating lead quality
- Failure to differentiate between high-priority and low-priority prospects
- Inability to adapt to market changes or customer behaviour
Such a system leads to reduced conversion rates as it fails to prioritise high-quality prospects effectively. By refining your lead scoring process, you can focus on the most promising leads and allocate resources more efficiently.
Here are some tips on improving your lead scoring process…
- Establish a set of criteria to evaluate leads based on factors such as demographic information, engagement, and behavioural data. This helps determine which prospects are most likely to convert.
- Assign scores to each lead based on your scoring criteria. Higher scores should indicate a higher likelihood of conversion and a better fit for your business.
- Periodically review your lead scoring system to ensure its effectiveness. Make adjustments based on new insights, market changes, or shifts in your target audience.
A CRM, like NetHunt CRM, can be an invaluable tool for implementing and managing a lead scoring system. It allows you to…
- Automate the scoring process
- Store and update lead information
- Quickly identify high-priority prospects
To learn more about lead scoring and how it can help your business generate more high-quality leads, visit our blog post on lead scoring.
Poor follow-up and nurturing process
A well-crafted follow-up and nurturing process is essential for guiding potential customers through the buyer's journey and converting them into loyal clients.
To improve your follow-up and nurturing process, consider the following tips…
- Develop a follow-up email sequence: Create a series of targeted emails that address the needs and concerns of your leads at each stage of the buyer's journey. Personalise your emails to make them more relevant and engaging.
- Set appropriate follow-up intervals: Space out your follow-up emails strategically to maintain contact without overwhelming your leads. Monitor your lead's engagement and adjust the frequency accordingly.
- Provide valuable content: Share informative and useful content, such as blog posts, webinars, and case studies, to establish trust and credibility with your leads.
- Track and analyse performance: Monitor the performance of your follow-up and nurturing efforts, and adjust your strategies based on the results.
A CRM like NetHunt CRM can streamline your lead nurturing process in various ways…
- Automating follow-up emails
- Tracking lead engagement
- Providing insights into the effectiveness of your strategies
For more insights on nurturing leads and winning deals, check out these articles…
➡️ 5 sales follow-up email templates you can’t help but read
➡️ How to nurture leads through email sequences [+templates]
➡️ How to nurture leads and win deals
How a CRM can boost your lead generation efforts
A CRM suite like NetHunt CRM empowers your sales and marketing teams to work more efficiently and effectively by streamlining and automating various aspects of lead management.
Using NetHunt CRM as an example, here's how a CRM can help your business generate more leads…
- NetHunt CRM consolidates all your lead information in one place, making it easier for your sales team to access, analyse, and act on the data. This centralisation allows for data-driven decision-making and targeting the right leads more effectively.
- NetHunt CRM enables you to create and automate personalised email campaigns that nurture leads through each stage of the buyer's journey. This automation saves time for your sales team and ensures that your leads receive consistent and relevant communications.
- Implementing lead scoring with NetHunt CRM helps you better qualify leads and prioritise those with the highest potential to convert. This ensures your sales team focuses on the most promising leads, boosting overall conversion rates.
- NetHunt CRM provides a shared platform for your sales and marketing teams, promoting better collaboration and communication. This ensures your lead generation efforts are aligned and harmonious towards a common goal.
- With its analytics and reporting features, NetHunt CRM gives you valuable insights into the performance of your lead generation campaigns. This data allows you to make informed decisions, refine your strategies, and maximise your ROI per lead.
Make sure to check out our list of the best CRMs for lead management and lead generation.
In conclusion, generating a consistent flow of quality leads is essential for any business to succeed and grow.
By identifying and addressing the 10 common reasons discussed in this article, you can significantly improve lead generation efforts. Don't forget the power of a CRM system like NetHunt CRM, which can streamline and automate many aspects of your lead generation process, ultimately leading to more conversions and increased revenue.
It's time to take action and make the necessary adjustments to bring your business to new heights.
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