The amount of time and money to spend on lead generation
Author:
Categorised In:
Share:
When it comes to business, managing things from product development to customer service can feel like a constant juggling act. Then add in the crucial task of lead generation, and it can be overwhelming, and you feel yourself asking, ‘How much time can I actually dedicate to acquiring new customers?’
Sound familiar? You’re not alone; this is something many business owners, salespeople and marketers ask, as you neglect your lead generation and your growth. However, overdoing it can cause you to neglect other business areas. In this blog post, we’re going to assess just how you can find the perfect balance of allocating your time to lead generation for sustainable growth and success.
Before we begin, it’s important to understand that, unfortunately, there isn’t a one-size-fits-all method, and the information in this blog should be used as guidance, which is tested and adapted to suit you and your business needs. If you need more bespoke guidance to help you improve your lead generation efforts, then contact our team to see how we can help you.
Why time allocation for lead generation matters
Like with most things, the amount of time you can dedicate to lead generation doesn’t have a limit, however there is a limit on how much time people have in a day and week. Therefore by not strategically allocating time to lead generation and other business activities you are neglecting growing your business in a sustainable way.
Lead generation needs to be done consistently otherwise your sales pipeline will dry up and inevitably lead to missed revenue targets and business growth stagnation. Whilst it can be easy to be swept up in the day-to-day business operations, not dedicating sufficient time to generating new leads is likely to have more impact.
Equally on the other side you can’t spend an infinite amount of time on lead generation and neglect other business tasks such as servicing existing clients which can lead to churn and put more pressure on acquiring new business to fill the gap. Therefore, the answer isn’t to keep spending more time on lead generation but allocating your time strategically and effectively that supports long-term stability and scalable growth.
Factors that influence your lead generation time
When it comes to lead generation and how much time you should spend on it, it’s almost that age-old question, ‘how long is a piece of string?’. This is because several factors will impact how much time is required. In this section, we will look at what those factors are, to ensure you are aware of them and the impact they can have.
Business goals and growth stage
The stage of your business and what it is trying to achieve are the primary factors for your lead generation. For example, if you’ve just started your business and have no customers, then you will need to dedicate more time to acquiring leads and customers, then perhaps a business which has been trading for years has several retainer or repeat customers.
Likewise, if you have specific goals whose success is influenced by lead generation, such as to increase the monthly qualified leads by 10% then you’re going to need to spend more time and resources, than a business whose business goal is to prioritise existing customers, for example increasing customer lifetime value, then they will need to focus more time on that then acquiring new ones.
If you’re also getting ready to launch a new product or service, then you will probably have to adjust your lead generation strategy, dedicating more time and resources to ensure you have a successful launch.
Industry and target audience
The industry you work in and the audience you are trying to reach will also impact your lead generation and how long you need to dedicate to the process. If you operate within a competitive market, then you’re going to need a competitive lead generation strategy to match. Likewise, a business that has a longer sales lifecycle will need to invest more time and money into nurturing leads and turning them into customers.
Available resources
The time you have to spend on lead generation also heavily relies on the other resources available to you. A larger sales and marketing team can distribute the time more evenly and therefore require less time individually. Whereas a smaller team will have to dedicate more time. Headcount isn’t the only resource that can impact your lead generation; for some businesses, they invest heavily in lead generation activities such as events and paid campaigns. Whilst others are restricted by budgets and therefore need to utilise more cost-effective methods, such as cold calling and using platforms like LinkedIn.
Sales cycle
The length of the sales cycle impacts the lead generation approach. Those with a shorter and transactional process will require a less extensive lead strategy. Though if your business sales process is longer and more consultative, then you will probably require more touchpoints to convert a lead, which also requires more time and money.
Practical strategies for allocating time to lead generation
Time blocking
A great way to ensure you’re dedicating enough time to an activity, whether that is lead generation or something else, then a popular practice is time-blocking. What that involves is setting out dedicated time periods within your calendar to ensure you have the time planned out. Different tasks will also require different time schedules, for example, outreach should be done daily, whilst content creation might only need to happen once a week.
Remember, if using this method, you need to be consistent with the time and almost treat these slots as non-negotiable appointments that can’t be moved. As soon as you start making some adjustments then you’ll start to fall behind with your lead generation again.
80/20 rule
Another simple rule and known as the Pareto Principle, is a process to follow in which 20% of your activities should be generating 80% of the results. With this in mind, you should be focusing most of your time and efforts on your most successful channels.
Task management
Time management is also closely related to task management, and there are a number of ways you can more effectively manage your tasks and not get overwhelmed or bogged down with the nitty gritty detail. Batching similar tasks can help ensure this. For example, if you’re sharing content on a platform like LinkedIn, then you might also want to dedicate an hour to the platform to follow up with outreach and expand your network. Another way to stay on top of your tasks is prioritising them. There’s a well-known task management book called ‘Eat that Frog’, and ultimately, that is about tackling your most challenging or unpleasant task first, as otherwise it tends to be those tasks which you put off and procrastinate.
Leveraging automation and tools
As we’ve already established, lead generation requires time and money, so the key priority is to ensure you’re spending that time and money in an efficient manner. This is where automation and tools can help. Most CRM platforms like HubSpot, enable you to create automated sequences that will continue your outreach to potential leads whilst you get on with other activities. Similarly, social media platforms like Hootsuite, Buffer and Sprout Social allow you to bulk upload and schedule posts, saving you time.
Outsourcing
Sometimes, if you’re struggling to find the time to dedicate to a certain task or activity, or perhaps you’re in a rut with that particular activity and struggling to achieve the results you’re after, then it might be worth outsourcing. The biggest thing when it comes to deciding this is weighing the cost and benefit of outsourcing compared to in-house. It might also be that outsourcing lead generation isn’t something your business wants to or can do right now, but perhaps there’s another task you can do so you can free up more time to dedicate to generating leads.
Measuring your lead generation time investment
So you’ve planned your time and your tools to work on your lead generation, but how do you know if your time investment is paying off? This is where you need to measure the success of your lead generation by tracking key performance indicators (KPIs) and the time you are dedicating to your activities. You need to set out a process of what to measure, how often you will measure it and ways to optimise, without this you could just be wasting your time and efforts.
KPIs to track
There are a number of KPIs you can track to measure your lead generation strategy, some of the top ones are:
- The number of leads generated – knowing the volume gives you a basic understanding, but remember quantity isn’t everything.
- The quality of the leads, looking at marketing qualified leads (MQLs) and sales qualified leads (SQLs) – these are leads that fit your ideal customer profile and those ready for direct sales engagement.
- The cost per lead – this is where the time and money you’re spending on activities to acquire leads comes into play.
- ROI on lead generation efforts – By then knowing your cost per lead and conversion rates you can then work out if the return is paying off and you’re changing leads into customer.
Regular reviews and analysis
As with any business strategy, you should regularly review your lead generation activities against the performance data. Reviewing your KPIs on a weekly or bi-weekly basis can help you identify trends which might then show you which activities are generating the best results. You could also schedule monthly meetings between sales and marketing to analyse this data and activities further, and work collaboratively on producing similar campaigns.
Continuous optimisation
Following your reviews, you should identify ways to optimise your strategy. This can be based on what your data is showing, or even new tactics you’re going to test, based on research or suggestions from others.
Remember, you need to be flexible and willing to adapt your approach to fit changing market conditions and get the best possible outcome.
Conclusion
Ultimately, the ideal time investment for lead generation isn’t about following a strict process and time restriction, but engaging in a continuous process of evaluation and adaptation. You should consider what it is you’re trying to achieve, what can impact you achieving that and then regularly review the activities and time you are spending on lead generation, generating the return you are after. Remember, consistency and strategic focus will be key to help with this.
Also, you shouldn’t be afraid to try something new, just because something has always worked, doesn’t mean there isn’t a better way out there. Building a sustainable sales pipeline depends on your ability to allocate your time and resources effectively to grow your business.
Deeper insights
Want to discover more insights from our experts on lead generation? Take a look at the following resources:
