As a demand generation marketer, we know there are a lot of different programs that you run on a yearly, monthly, and daily basis to generate leads and drive revenue. From paid emails, to paid social media, PPC ads, and more, there is a lot going on. And unfortunately, all of these activities are expensive and may not have the return you are looking for. The problem is, you never know what will generate high quality leads and what will be a bust.
Program Spend Evaluation
Software Advice recently released a “Magic Quadrant” of sorts that maps popular demand generation tactics and groups them based on lead quantity vs. lead quality. Take a look at the quadrant.
Look at the concentration of programs in the lower left-hand side of the quadrant—low lead quantity and low lead quantity. Plus, not only are many of these programs under-delivering, but there are also some notably high-cost tactics in this quadrant–ads, lead lists, direct mail, telemarketing, and more. These are all programs that marketers often spend a large chunk of their budget on.
Just take a look at this sample budget. Look familiar?
That’s a lot of money on top-of-funnel programs! And there is no guarantee that you are going to get high quality leads. In fact, according to the quadrant from Software Advice, many of these programs yield low quality leads. So why spend the money?
Predictive marketing can actually replace a lot of these tactics and further optimize others. As a result, you are saving money and gaining more, higher quality leads.
Let’s break it down. One of the key functionalities of a predictive marketing platform is predictive demand generation. To refresh your memory, predictive demand generation identifies the right accounts to target with your marketing efforts—the ones that look like your best customers. The accounts sourced through the data-backed intelligence of the platform have a much higher propensity to buy. Why? Because these net-new prospects look and act like your best customers. Leveraging data enables you to do much more than look for a needle in a haystack—it enables you to target with more confidence.
Let’s take a look at what you can consider replacing. Think about it—do you really need to spend $7500 on that list purchase? Most of the time list purchases have incorrect data and a low ROI. How much time and money have you spent creating email campaigns for list buys only to see them all bounce back? And then, what about your paid programs like content syndication, paid emails, and teleprospecting? Sure, you have worked with the vendors to select the target audience, but you never know who will actually respond and if that target audience you chose is even the right audience! And, you no longer need data append since predictive demand generation gives you that information.
Using our fictitious budget example, you can actually save $117,500 by slashing some of these high cost, low yield tactics. Why can you replace all of these programs? It’s simple, with predictive demand generation, you are actually able to fill your funnel with new accounts that are a great fit for your company and backed by data.
As a result, you don’t need to waste your budget on unreliable lead acquisition items like list purchases, content syndication, paid emails, teleprospecting, and data append. Instead, with predictive demand generation, you can spend your time and resources on actually building relationships with the right accounts and moving them through your sales funnel.
To learn how to save even more money by purchasing a predictive solution, be sure to download our ebook, 2016 Planning: How to Budget for Predictive Marketing.