The world of B2B sales & marketing is evolving, with traditional tactics & strategies becoming obsolete by the day. As per a 2022 study by McKinsey, most companies today are shifting towards a “hybrid” sales model – replete with personalization, buyer convenience and a multichannel approach to selling.
Yet a huge chunk of B2B sales teams find themselves underprepared and too overwhelmed to navigate through the modern sales environment. Consequently, in-house lead generation efforts often suffer, leading to a detrimental impact on the company’s sales pipeline and overall growth.
Amidst these challenges, lead generation outsourcing surfaces as a strategic solution. It offers an avenue for companies to focus on their core competencies, while expertly managed sales processes run in the background.
But how do you choose a B2B lead generation outsourcing partner for your business? What are the factors that need to be considered?
Here’s everything you need to know!
What is Lead Generation Outsourcing?
Lead generation outsourcing, in the B2B context, is the practice of delegating the lead generation process to external, specialized agencies. This concept has gained significant traction among businesses seeking to enhance their sales outcomes and expand their market reach.
When it comes to outsourcing B2B lead generation, it’s advantageous for business owners & sales teams, especially since its a mix of advanced strategies, new-age tools, and channel-specific expertise that in-house teams may not possess.
Benefits of Outsourcing Lead Generation
As stated previously, lead generation outsourcing is a win-win for both B2B businesses & their growth partners.
Given below, are some common benefits of outsourcing lead generation:
Outsourcing lead generation translates into a more streamlined and effective sales process. External agencies bring a level of specialization and efficiency that is hard to replicate in-house. They employ dedicated teams whose sole focus is lead generation, ensuring a more concentrated and productive effort.
This efficiency is further enhanced by their experience in handling diverse campaigns, allowing for quick adaptation and implementation of best practices.
Contrary to the perception that outsourcing is an added expense, it often proves to be more economical in the long run. Maintaining an in-house team for lead generation involves significant investment in the range of $200,000 to $500,000 annually (spent on hiring, technology-related costs & content creation among others).
Outsourcing eliminates these overheads, allowing businesses to pay only for the services they need. Additionally, the economies of scale that outsourcing agencies enjoy can be passed on to clients, offering cost savings.
Access to Expertise
Agencies specializing in lead generation outsourcing come equipped with a depth of knowledge and expertise in sales and marketing strategies. They stay abreast of the latest trends and tools, ensuring that your lead generation tactics are not only current but also effective.
This expertise is particularly beneficial in navigating the intricacies of different industry segments and customer profiles.
One of the most significant advantages of lead generation outsourcing is scalability, which allows companies to ramp up or scale down their lead generation efforts based on market demand, seasonal trends, or budgetary constraints.
This flexibility is vital in responding to market dynamics and ensures that businesses are not burdened with fixed costs or resources – making it one of the key reasons companies outsource key functions to external partners.
How to Choose a B2B Lead Generation Agency?
Choosing a lead generation outsourcing partner involves a few key points that must be kept in mind at all times.
Given below is a list of things you need to consider while choosing a B2B lead generation agency for your business:
1. Industry Knowledge & Channel-Specific Expertise
Your lead generation outsourcing partner should have in-depth knowledge of the industry, and an understanding of how to leverage at least 2 channels for lead generation.
Well, the simple reason is that it helps in crafting strategies aligned with industry norms & customer expectations. Agencies who spend time working and testing strategies for specific channels can often navigate through the nuances that come along, leading to more effective lead generation.
2. Past Experience Solving Similar Problems
Social proof and case studies from the B2B lead generation agency are another important consideration. Does the company have any past experience solving similar challenges? How many leads did they get from them? Or simply what kind of strategies did they use?
It’s important to answer these questions, so as to understand if the lead generation outsourcing partner truly understands your business & the challenges associated with it.
- What were the challenges faced?
- What strategies and tactics did you use to overcome them?
- What kind of results did those tactics achieve?
You can also ask them these questions directly, in order to gauge their past experience generating leads for others in your industry.
3. Quality of Leads & Conversions Generated
The quality of leads being generated is another key factor, given that it contributes significantly to the bottom line of your business. When choosing a lead generation outsourcing provider, it’s important to know their lead qualification and verification methods – so that the leads generated are relevant and have a higher chance of conversion.
One must also consider the lead conversion numbers (the industry standard being 2-5% minimum), since a service provider with a proven track record of converting leads into customers is more likely to deliver the desired results.
4. Level of Transparency & Communication
Effective communication and transparency are key to a successful partnership. The right agency should provide regular updates, be open about their strategies, and be receptive to feedback. For example, here at Cleverviral, we regularly put out best practices, growth hacks, templates and workflows to drive higher conversions with outbound.
This transparency builds trust, allowing both existing and potential clients to solve immediate problems and align themselves with our methods.
5. Pricing & Contract Terms
Pricing and contract terms are yet another key factor while opting for lead generation outsourcing. If a B2B lead generation agency offers you a fixed price before understanding who you’re targeting & the problems faced, it’s a bad sign.
Before giving you a quote for lead generation outsourcing, B2B agencies need to consider the following factors:
- What goals are you trying to achieve?
- What is the sales cycle for your industry like? And how does it work?
- Who’s the target market, and the decision-makers involved?
Once you’ve shared these details, a good B2B lead generation agency can provide you a customized quote, which usually starts at $3000 and goes up to $30,000 per month (based on factors like business size, problems being solved, time taken to convert etc.)
6. Return on Investment (ROI)
Analyzing the total return on investment is critical for lead generation outsourcing. Usually companies invest in third-party help because the costs of maintaining an in-house team often extend beyond their scope and budget.
As a result, these companies end up shelling out a significant amount, which makes the return on investment an important factor for outsourcing B2B lead generation.
You’ll need to figure out the cost of lead generation and the revenue it brings, before subtracting the former with the latter to derive the total profits.
Once you have this information, simply divide those profits with cost per lead to get the total ROI on your campaigns.
If an agency can bring in positive ROI that exceeds your investment into their service, they’re probably a good fit for your lead generation outsourcing needs.
7. Team and Culture-Fit
The compatibility of an agency’s team and culture with your company’s ethos plays a pivotal role in the success of any outsourcing partnership. As per research, companies that prioritize cultural fit in their business partnerships often see a significant increase in project success rates.
This is because when teams are aligned in their approach and values, they can work together more effectively, leading to better outcomes and a more cohesive working relationship.
Where to Find the Right Partner for B2B Lead Generation Outsourcing?
Finding the right partner for lead generation outsourcing requires thorough research and consideration.
Here are some effective ways you can use to find the right B2B lead generation agency for your business:
- Review platforms and marketplaces: Platforms like Clutch, Crunchbase & Upwork offer a comprehensive list of agencies that can help you with lead generation outsourcing.
You can browse through their directories and company pages (replete with details about the company, customer reviews & past work) to find a reliable service provider for your lead generation requirements.
- Recommendations & referrals: Leveraging your professional network for recommendations and referrals is another effective strategy. Referrals from trusted business associates, partners, or industry peers can often lead you to reputable and reliable lead generation agencies.
These recommendations are particularly valuable since they come from direct experience and can provide insights into the agency’s performance, work ethic, and ability to deliver results.
You can connect with them through LinkedIn, or simply ask your peers for reference and contact details of the agency you’re looking to outsource your requirements to.
- Industry events and conferences: Attending industry-specific events and conferences is a powerful way to connect with potential lead generation partners, learn about their latest offerings, and gauge their expertise.
Such events also act as platforms for agencies to showcase their success stories, technological advancements, and innovative strategies, giving you a clearer picture of their capabilities. Networking at these events can also lead to serendipitous encounters with agencies that might be the perfect fit for your specific needs.
- Online forums and communities: Participating in industry forums and online communities can offer valuable insights and recommendations from peers who have had direct experience with outsourcing agencies.
Additionally, participating in these discussions not only aids in finding a suitable agency but also helps in building your professional network and staying updated with the latest trends and best practices in lead generation.
Mistakes to Avoid While Hiring A B2B Lead Generation Agency
Hiring a B2B lead generation agency is a significant decision, and avoiding common mistakes can ensure a more successful outcome.
Here are a few you need to avoid:
- Ignoring cultural fit: It’s crucial to ensure that the agency’s culture aligns with yours. Mismatched values and working styles can lead to friction and inefficiencies, further causing friction.
Make sure to only partner with those companies who believe in transparency, open communication and your long-term vision.
- Neglecting track record: Don’t overlook the agency’s history, since their past performance is a reliable indicator of future results.
Agencies with a proven track record in your industry are more likely to understand and meet your specific needs.
- Unclear Goals and Expectations: Entering a partnership without defined goals leads to misaligned strategies. Be clear about your expectations and desired outcomes to ensure the agency’s efforts are in sync with your own long-term objectives.
- Overlooking Lead Qualification Process: Not understanding an agency’s lead qualification process can result in low-quality leads, and a significant increase in the cost of acquisition.
If you’re looking to outsource B2B lead generation, make sure that the agency’s strategies and methods align with your target customers.
Stack Your Sales Pipeline with Tailored Lead Generation Outsourcing Solutions
Choosing the right lead generation outsourcing provider can be a task, with many factors coming into play. If your current, in-house lead generation efforts are not bringing the desired results, you can engage with a service provider that understands your problems and can provide tailored solutions.
As a B2B lead generation agency for your business, Cleverviral combines both experience and an experimental approach to lead generation.
We help companies fill their pipeline with hot leads for their business using AI, intent signals and modern outbound systems.
Once we’ve received your interest, one of our team members will get in touch to discuss your challenges and how we could be of help there. Also don’t forget to share this or bookmark the article for future reference.
Until then, happy prospecting!!
Frequently Asked Questions
What is outsourcing lead generation?
Outsourcing lead generation implies hiring an external lead generation service provider to help you generate leads, qualify them & add to your sales pipeline.
Many product and service companies outsource their B2B lead generation efforts when their existing sales processes & methods don’t return the expected results.
How do outsourcing companies generate leads?
Lead generation outsourcing agencies usually generate leads using a combination of different channels & techniques. Usually a lot of lead generation service providers focus on paid ads, email marketing and appointment setting services to help their clients add more revenue & enable more scalable business growth.
What is the average cost of a B2B lead?
The average cost of a B2B lead usually varies based on factors like the industry, channels used alongside the usual sales cycle and buying behavior.
While channels like paid ads are more scalable & immediate, they’re also quite expensive. As a result, it doesn’t always guarantee a high quality of leads.
Alternatively, channels like email and cold calling offer better lead quality, higher conversions and more predictable growth per month.
That being said, the sales cycle via these channels is usually longer.
Why not just buy a leads list?
Buying a leads list might seem like a quick solution, but it often leads to low-quality leads, as these individuals haven’t expressed interest in your product or service. This approach can also damage your brand’s reputation and result in low engagement rates.
In contrast, organically generated leads, though more time-consuming to acquire, are more likely to be interested in what you offer, leading to higher conversion rates and better ROI.
Additionally, purchasing leads can risk violating data privacy regulations like GDPR, which mandate consent for personal data use.
Is location important when hiring a lead generation company?
If you’re looking for cold calling services, then yes, the location does sometimes matter. But when it comes to emails, you can easily partner with a remote B2B lead generation agency to generate leads for your business.