Why nurturing matters

Most companies selling B2B do not effectively nurture their early stage leads.  In fact, according to a study done by the MetaGroup, fully 70-90 percent of marketing-generated leads are never acted on at all, because sales found them unqualified for immediate or near-term sales.

Of those leads that are followed up and qualified, only about 16 percent actually close, according to Aberdeen Group. The remaining 84% of qualified leads that do not turn into short-term sales will end up slipping through the cracks, either because there is no lead nurturing program available, or because the company lacks a mechanism for sales people to recycle leads.

Companies who do nurture and recycle their leads achieve significantly higher sales performance when it comes to lead-to-sales conversions, bid-win ratios, and average order value.

According to Aberdeen Group, nurtured leads net 47 percent higher average order values.  And, The Pedowitz Group (an independent demand generation consultancy), reports most companies that implement lead nurturing see a 2 to 3x lift in conversions from cold leads to qualified opportunities.

Generally speaking, lead nurturing campaigns won’t deliver instant results in the first few months. The Aberdeen Group reports it generally takes 6-12 months before the first qualified leads start to trickle out of a campaign. We tell our clients their nurturing program will take at least the length of a typical buying cycle  (not the selling cycle) before it starts bearing fruit.

With a 2 to 3x lift in conversions from cold leads to qualified opportunities, and 45+ percent higher average order value – the effort to nurture buyers is worth it – without a doubt!