B2B Lead Generation Best Practices Guide 2023
Not all lead generation tactics for B2B companies are made equal. We've studied the best strategies for generating fresh sales leads for years, and we share them with you in this post.
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Overall, the best course of action is as follows:
To assist you in understanding what will work best for B2B organizations in 2023, we will expand on these stages below.
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Best Practice #1 for B2B Lead Generation: Calculate your marketing budget by comparing CAC to LTV
Your LTV and CAC are your two most potent lead generation B2B lead generation instruments. It's okay if you don't know them exactly at this time; instead, you should make a cautious estimate and run your math past the other team members until you arrive at a figure you feel confident in. LTV is determined as follows for businesses with recurrent revenue:
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Subtract the number of clients from your annual gross earnings.
After that, increase that figure by the typical number of years a customer remains a client.
NOTE: Since the computation is independent of the unit of time, you may also perform it on a monthly basis.
LTV is determined by multiplying the average order value by the typical number of purchases made throughout a customer's lifetime for businesses that sell items.
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Knowing your LTV enables you to calculate your ideal CAC, or how much you should spend (on average) to bring in just one new client. If you knew you would make $40,000 in gross profit from a new client, you would spend no more than $10,000 to acquire them, which is an excellent LTV to CAC ratio of 4:1.
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In order to carefully choose channels that will enable you to acquire clients at or below your goal CAC, you may use public CAC benchmarks of different B2B lead generation channels after you have your marketing budget for the year. You can calculate how many new clients you'll get that year by doing this.
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But before you commit your marketing money, you'll want to utilize some of it to make a few carefully chosen one-time investments that will set your marketing up for success.
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B2B Lead Generation Best Practice #2: Invest wisely in one-time campaigns:
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For B2B companies, certain one-time marketing efforts might provide disproportionate returns. Here are three situations where a smart one-time investment sets the path for long-term success, to assist you in deciding if that is the case.
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You want to invest in SEO since you are aware that your target market searches for your good or service on Google. You run an expensive Google Adwords PPC campaign for 60 days prior to doing this to help compile a list of the top keywords in your sector in terms of conversion rates.
Traditionally, your company has not produced leads from its website, and when visitors do arrive, conversion rates are low. You make the pricey investment in a website makeover that provides you with a well-branded, conversion-optimized, swift, and secure online presence.
In a new market with limited overlap with your present clients, you are evaluating a new product or an old one. You can determine interest by displaying this product at trade exhibitions and launching a 90-day advertising campaign.
The risk is that since companies will always have to pay for each lead, while PPC price inflation pushes costs higher, it leads to progressively rising CACs over time when these one-time campaigns are used as a company's primary method of lead generation. Instead, spend most of your lead creation budget on inbound channels.
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B2B Lead Generation Best Practice #3: Fill your marketing funnel with reliable inbound sources.
Anything that "pulls" interested visitors in is referred to as an inbound lead generation. The primary benefit of inbound lead generation is that it makes potential clients believe that contacting you was their idea, which shortens sales cycles (thus lowering your CAC). When compared to B2B lead generation tactics overall, inbound strategies have an ROI that is above average.
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The three tactics listed below are the ones we've discovered to be most successful in 2023's post-pandemic economy. We have taken into account each strategy's learning curve, total cost, time commitment, and time before you start to see benefits in addition to ROI:
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speaking in public. Nothing else can compare to the prestige that comes with speaking engagements and the importance of presenting directly to your potential clients in a situation that fosters trust. As a result, public speaking is very successful at generating leads. However, there are certain restrictions, such as the requirement that you have a confident and experienced speaker on your team, and set aside time for travel to events, I already enjoy enough name recognition in the sector to receive invitations to speak on those occasions.
thought leadership and SEO. This is the next-best strategy for generating inbound leads. You may bring in a consistent flow of visitors by posting material on your website that influences the debate in your sector. Those visitors will be prospective clients interested in purchasing your goods or service when you combine this with SEO that recognizes search intent. This type of lead generating is also the most scalable, but it takes time to see results.
Networking informally. Any networking with potential clients that takes place in a setting where selling isn't the main goal is referred to as informal networking. This works well since it's rather cheap, so you can always have it running in the background, but it moves more slowly than the other approaches.
Following your selection of the most effective investment channels, you should continue to refine your strategies to maintain your funnel filled.
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Best Practice #4 for Generating B2B Leads: Iterate, Test, and Adjust
Whatever your lead generation strategies are, you should always be searching for ways to make them better. Establish the KPIs you'll use to gauge campaign performance before you launch it. When doing so, consider the campaign's duration; for example, if you're adopting a method that won't provide returns until six months in, Making immediate fixes won't benefit from looking at your total ROI. You may create a lead-generating pipeline that is long-lasting by iterating, testing, and making improvements on a regular basis.
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