Learn how to determine whether an email address is real or not before you actually send it.
3 Reasons to Try a Lead Generation Tool and 3 Reasons Not To
There are plenty of ways to acquire new leads for your business. Using a lead generation tool for this task is something that has been widely discussed amongst sales and marketing professionals. Therefore, when you’re faced with the question of whether to use a lead generation tool or trust other methods, you need to weigh the pros and cons of both approaches.
In this article, we’ll go through some of the positive and negative sides associated with lead generation tools and provide you with three reasons why you should and should not try one out.
Why You Shouldn’t Use a Lead Generation Tool
By figuring out the disadvantages of lead generation tools, you can make an informed decision regarding your sales process. Here are the main reasons why you shouldn’t use a lead generation tool:
1) If you want to have full control over where your leads come from
Outsourcing lead generation means that the whole process is transferred to a third party. Therefore, you won’t be able to know for sure where your leads are coming from. Of course, respectable businesses won’t provide you with low-quality leads but trusting an outside supplier always comes with a certain risk. How do you solve this problem? The answer: by taking the time to learn which lead sourcing method a lead generation platform is using.
Also, statistics show that lead generation is one of the most commonly outsourced services. Thousands of companies make use of lead generation tools and benefit from their creators’ expertise. However, if knowing the exact source of your leads is a priority for you, then you might want to keep the lead generation in-house. This way you’ll have full control and get a deeper understanding of the products you sell.
2) If you haven’t calculated the Cost per Lead (CPL)
Using a lead generation platform means paying for a certain amount of contacts every month. However, many companies have no idea how much they can afford to pay per lead. So, if you haven’t calculated your current CPL, you won’t be able to compare the profitability of the ongoing marketing efforts vs. the efficiency of a lead generation tool.
The CPL varies from a few to thousands of dollars. It’s influenced by many different factors, such as your product’s characteristics, its price, the size of the target audience, direct expenses for a campaign, etc. If you want to know the real value of a sales lead, you can check this article where we explain how to calculate the Cost per Lead. Only then you’ll be ready to try a lead generation tool.
3) If you’re going to send spam
It’s evident that some leads coming from a lead generation tool may be better than others. However, even if the leads are of the highest quality, you can screw everything up by sending spam. You won’t believe how often companies do this.
By “spam”, we mean emails that are general, not customized, poorly written and aimed at a broad audience. We put together a guide on how to avoid emails going to spam (read it here), but when it comes to sending emails to people found on a lead generation platform, you should always remember that these people don’t expect to get an email from you. They don’t know who you are, what you have to offer and, in general, might not be ready to buy.
So, if you prefer a “hard-sell” approach and are not willing to nurture your leads, then we recommend using other lead generation methods (for example, inbound).
Why You Should Try a Lead Generation Tool
There are positive and negative sides to any business decision. As to trying out a lead generation tool, here are the top reasons why you should do this:
1) You don’t have enough time and resources
Establishing a lead generation process within a company requires resources which may not always be available. Using a lead generation tool saves time and money when organizing a sales team’s workload and its quality control. You can also focus only on closing deals without spending time and energy trying to find new clients.
The decision to outsource lead generation is not only a matter of costs but also of knowledge. If you want to do all lead generation in-house, then you’ll need to hire and train a sales team, whereas with lead generation tools, you won’t need a large sales department to ensure a steady lead stream to your sales pipeline. So, this type of software helps to solve human capital problems too.
As a general rule of thumb, if you’re a B2B company with a sales cycle that is at least 1-2 months long, by choosing a lead generation tool you can boost your sales and grow your revenue.
2) If you want to take your business to the next level
Finding potential clients can be tricky at times, especially if you don’t have enough data. In order to grow your sales, you definitely need to automate your lead generation process.
By using a lead generation platform, you can make use of online resources and discover people that fit your company’s Ideal Customer Profile (ICP). In fact, if you have your ICP and value proposition in place, then it’s pretty easy to use them with a lead generation tool and scale up. We explained how to do that in one of our blog posts.
So, with lead generation software you can easily identify new possibilities and target industries that you haven’t even attempted to enter yet.
3) If you want to enrich your current leads
A good lead generation tool provides not only email addresses, but also names, positions, companies, and more. You can take this data and use it to enrich your current leads. Having enough prospects and enough details about them is going to help you target potential clients with the right message.
The quality and quantity of leads can be defined and sometimes limited by a lead generation tool. The more advanced the software is, the more sources it covers and the more information you can gather.
Lead generation tools are in high demand because not all companies have enough time for finding new prospects every week, and others simply don’t have necessary know-how. Whether or not a lead generation tool is a good fit for your company depends on many factors such as your company’s size, structure, and financial standing.
Many businesses are using several tools to generate leads. When it comes to deciding whether your company should use one or not, the best strategy is to simply give it a try and analyze if this approach works for your business. However, you should not leave the entire marketing process to lead generation software because this type of tool simply can’t solve all of your lead generation problems.