As of 2023, I've been lucky enough to have consulted to or mentored over 100 startup founders/leaders, and by far the number 1 critical thing preventing startups from growing is - consistent, quality lead generation.
the number 1 critical thing preventing startups from growing is - consistent, quality lead generation.
Lead generation is the holy grail of scaling. In simple terms, it's about finding more buyers, which is easier said than done. But here's where many companies miss the mark: they approach lead generation as a one-person job, often hiring a Sales Development Representative (SDR) or a growth marketer with the unrealistic expectation that this single individual will magically propel the company to new heights.
This approach is not only flawed but also detrimental to the overall success of your SaaS venture. Let's dive into the three types of SaaS lead generation strategies – short, medium, and long-term – and why you need a balanced approach to truly make it work.
The Way Everyone is Getting it Wrong
Before we delve into the specifics of lead generation strategies, it's essential to understand why so many companies are getting it wrong. The narrative often goes like this:
The sales/marketing pipeline slows down, failing to deliver the desired growth.
The team decides that more leads are the solution to their problems.
They rush to hire an SDR, growth marketer, or a similar role.
Initial excitement ensues as the new hire chalks up some quick wins.
However, the initial success tapers off, leading to frustration within the company.
Blame is assigned to the new hire, questioning their competence.
The team starts contemplating hiring more people, hoping to find a solution.
This cycle is not only erroneous but also places an unrealistic burden on the hired individuals. Lead generation should not be considered as the responsibility of one role; it's a coordinated effort that should emanate from the top-down.
In fact, SDRs, growth marketers, and similar professionals often face unfair treatment in organizations due to these misconceptions.
Short-Term Strategies (Ready to Enter the Buying Process)
Short-term lead generation strategies are what typically come to mind when we think of lead gen. These strategies focus on immediate results and include activities like cold calling, cold emailing, and other direct outreach methods. While effective in the short term, they are not sustainable for long-term growth.
The majority of customer growth for any company stems from the network effect of effective products and high-functioning teams. However, short-term strategies can be useful for filling the sales pipeline and should be part of a weekly ritual for your sales team.
Additionally, running paid ads to promote free trials, demos, and similar offers can be a short-term option. Although this can provide a consistent stream of leads to the market, it can also be costly if not executed correctly. Creativity and messaging must evolve over time to prevent the lead flow from flatlining.
Medium-Term Strategies (< 6 Months Away from Buying Process)
Medium-term lead generation strategies are geared towards educating and building trust with your audience and potential buyers. These strategies target individuals who understand the problem but may not be ready to take action immediately. They need more evidence and insights to gain the confidence to make a decision.
Effective medium-term strategies include:
Case studies
Webinars
Interviews with industry experts
Industry benchmarking
Gap analysis
These tactics may not always result in immediate conversions, but they are likely to encourage sign-ups and subscriptions, nurturing leads for future conversions.
Long-Term Strategies (>12 Months Away from Buying Process)
Long-term lead generation strategies focus on building brand awareness and educating the industry about the current state of the problem your SaaS solution addresses. These strategies are not for the faint of heart, as they often yield little to no immediate or direct results.
However, they plant the seeds in the minds of your ideal customers, making them think about and consider your solution in the long run. Some have referred to this type of lead generation as "Demand Generation", which makes sense - essentially both are different ways of saying "find and attract more ideal buyers in your direction".
Effective long-term strategies include:
Sharing industry stories
Creating educational content such as blogs and webinars
Sharing content about "The Future of: XYZ topic/Industry"
Participating in industry conferences
These efforts won't yield immediate conversions, but they lay the foundation for your ideal customers to begin contemplating and eventually adopting your solution.
Conclusion: Balancing the Three Types of Lead Generation
In the world of SaaS, lead generation is not a one-size-fits-all endeavour. To succeed, you need a well-balanced approach that combines short, medium, and long-term strategies. Focusing solely on short-term strategies can lead to stagnation and damage your brand's reputation as "too salesy."
On the other hand, an exclusive emphasis on long-term strategies can result in a lack of urgency, action and thus revenue.
Your lead, marketing, and sales funnel should be a consistent, flowing operation, with each strategy serving a specific purpose within your overall plan. Remember, scalable lead generation equals scalable businesses.
By understanding the nuances of each approach and implementing them strategically, you can chart a course for sustainable growth.
And most of all - lead generation and subsequent growth the a company wide strategy that all parties need to be across, bought into, and most of all, driven from the top down by company leadership.