The general rule of thumb is that when all things are equal — marketing is the best home for Lead Generation.  The problem is that all things aren’t always equal.  Lead Management can be successful in either area.  Read on to discover what is best for your company.

 

Simplify the Decision by Breaking down the Problem

 

First, let’s bring clarity to the question by breaking down the decision at hand.  Lead Generation consists of two functions:

 

  • Demand Generation – Content marketing and lead sourcing early in the buying process to generate inquiries into the very top of the funnel
  • Lead Management – The process to manage inquiries at the early stage of the buying process to transform cold inquiries into warm sales-ready leads

 

Clearly Demand Generation fits in marketing.  The question at hand is whether Lead Management is best to be part of the marketing or sales organization.   Which option gives you the best opportunity to drive the alignment of Sales & Marketing that is required for success?

 

Weighing the Best Fit for Lead Management

 

Lead Management includes lead grading, scoring, automated nurturing and 1:1 nurturing through Lead Development Representatives.  There are pros and cons to sales vs. marketing as a home for Lead Management: 

 

Sales and Marketing Lead Generation resized 600

 

Marketing

 

  • Benefits:
    • Reduced Temptation: Sales leaders can be tempted to prematurely accelerate raw leads into the sales force during a tough quarter.  This short-term action can find quick hits, but bleeds the top of the funnel dry and negatively impacts future quarters.  Marketing is an ideal steward of lead progression.
    • Pace of evolution: Excellence in Lead Management is all about adjusting to changes and opportunities that are observed by Lead Development Reps (LDR’s) of prospects in the buying process. LDR’s within marketing have greater ability to request and receive quality content.
    • Greater Alignment with Buying Process: Marketers naturally operate from the buying process from birth. This is innate for marketing — no transformation is required.
    • Greater focus on Demand Gen Conversions & Early Stage Conversions: Marketing will be fully engaged with optimizing the early conversions in the funnel. If this is a ‘check the box’ deliverable to sales then it will be completed, but not optimized.
  •  

  • Cons:
    • Slower Collaboration with Sales: Requires effort to drive LDR collaboration with counterparts in sales.
    • New Capability Acquisition – Marketing leaders don’t have experience in launching or managing inside call teams. A manager or director with inside or telesales management experience must be hired to lead the team.
  •  

Sales

 

  • Benefits:
    • Increased Collaboration: There is natural collaboration between sales LDRs with field sales counterparts
    • Greater Sales Force Adoption: The field will more readily embrace changes to the lead management process.
    • Call Center Expertise: Sales has deep knowledge and tenured managers with experience operating Inside Sales teams.  This experience translates nicely to the training, coaching, and leadership of lead development teams.
  •  

  • Cons:
    • Slower Pace of Evolution: Sales leaders with an Inside Sales mindset can have a hard time transforming. What has made them successful in inside sales is counter-intuitive to lead management. Inside Sales minded leadership tend to resist the new Lead Nurturing methods until it can be proven to them. The result is incremental shifts with a large influence of old sales 1.0 methodology squeezed into Lead Management.
    • Lack Quality Marketing Content and Offers: Lead Management within sales often lacks quality tools and offers to work with to build interest with early stage leads. Marketing will ‘check the box’ like they do with sales materials vs. a continuous improvement effort with LDR’s that are on their own team.
    • Potential for Corrupted Learning’s: Inside Sales minded leaders may figure out how to produce results with sales 1.0 method by using discipline and sheer numbers — this success can be strong enough to prevent optimization and adoption of Lead Management best practices.

 

Other factors to consider:

 

  • Historical success of department leadership
  • Capacity of department leadership to enable change
  • Do the department leaders demonstrate a collaborative mindset
  • Call center logistics (location cost of living, existing technology, equipment and office space, etc.)
  • LDR call center proximity to sales/marketing leadership
  • Current staff readiness within sales and marketing

 

Successful Decision Making  

 

Lead Management can be successful from sales or marketing.  Weigh the options carefully and make an informed decision.  There isn’t a perfect decision — instead look for the best decision that provides you with the most advantages based on the dynamics of your organization.   

 

To learn more, review the OnDemand webinar Lead Generation – The Roadmap to Success.

 

@VinKoe Follow @VinKoe@MakingTheNumber Follow @MakingTheNumber

ABOUT THE AUTHOR

Vince Koehler

Help clients drive a strong marketing return on investment.

Prior to SBI, Vince served as the VP of Marketing for Integer and led e-commerce Agency of Record account teams at VML, a full service digital marketing agency. During his tenure, VML became a market leader, growing from 72 to more than 700 employees. Prior to VML, Vince was the President of Propeller Interactive, a digital marketing agency with clients such as Koch & Sprint.

Vince was the primary author of the latest SBI Magazine focused on Revenue attribution. Marketers are always looking for ways to demonstrate that their investments are connected to revenue generation. Attribution modeling is a data-driven approach to measure the monetary impact on lead conversion, opportunity creation, and revenue generation. To see how revenue attribution fits into your overall marketing strategy, download our SBI Magazine Special Issue: Revenue Attribution.

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