Lead generation, what is it and is it time to move past it?

A fascinating article in MarketingWeek today suggests that B2B marketers should move past lead generation as a measure of effectiveness.

This is a rather controversial take given how popular lead generation is for marketers as a whole to determine the success of their marketing programmes. It does however, raise the question of what exactly lead generation is.

Lead generation is the process of ensuring customer interest in a product or service turns into a sale. In online marketing for example, this would involve collecting a visitor’s contact information(a lead) via a web form.  

Forming a core part of the sales funnel for many B2B companies, collecting new leads enables these businesses to educate and nurture prospective customers through email marketing. Once this is done, these businesses can reach out to qualified leads  (those who fit the profile of an ideal customer with intent to buy) directly via salespeople. 

So, with this in mind, why does MarketingWeek suggest that B2B marketers should consider moving past it?

According to the article, recent research by the CMO Council shows that roughly 64% of US B2B marketers think their business’ lead generation strategy is slightly or not at all effective. 

According to David Van Schaick, Founder of DVS Strategy, this figure highlights his view that lead generation is an example of Goodhart’s Law: “When a measure becomes a target, it ceases to be a good measure. For a long time lead generation was the defining metric for a lot of B2B marketers.”

This, Van Schaick argues, has put marketers under a lot of pressure to deliver a lot of leads, turning it into a numbers game, meaning marketers may be tempted to put quantity over quality. Meaning that marketers are more concerned with getting the lead than seeing whether there is any risk of that lead falling away from the funnel before they’ve bought what is being sold.

What others such as Peter Weinberg, former global head of development at LinkedIn B2B Institute argue is that B2B marketers also need to focus on the overall picture. By this he means ensuring that the business has a story that’s very repeatable and easy to sell. Something that will capture the imagination of potential customers and help build a network.

Despite pointing out the flaws of solely relying on lead generation, both Weinberg and Van Schaick admit it does have a place in the marketing strategy. It just shouldn’t be the be all and end all, but rather one part of a wider strategy that merges story telling, brand development and customer engagement to increase sales.