Outbound Lead Generation: when to use it and when not

Outbound lead generation in B2B SaaS and Services has many aspects (cold email, LinkedIn, cold calling, multichannel, …) but the most important aspects are common to all outbound sales activities:

 

Unlike other tactics such as Inbound, Content Marketing, and Paid Ads, outbound lead generation is super effective in B2B and especially in the high ticket enterprise space.

Outbound lead generation is the only scalable and repeatable sales method to grow faster and export a business to new market segments. Selling through personal relationships and referrals is not predictable and can’t be systematically scaled.

 

When you should use Outbound Lead Generation

 

Need for uninterrupted flow of leads

Outbound lead generation is all about generating an uninterrupted and repeatable flow of qualified sales leads and meetings, independent of all the other mostly time-limited marketing campaigns and sales experiments. Done right, outbound leads feed your account executives (AEs) with a constant flow of calls with new potential customers.

 

Entering new market segments

Outbound lead generation is also used to objectively test new market segments (geographically, different industries, different company sizes).

Unlike other tactics (inbound, and paid ads) you also get unbiased and direct replies from which you can learn your market segment specifics, such as: no such pain/need in the market segment; the market segment is not ready; the total addressable market segment is too small; one or two dominant competitors; no relevant differentiators in a very crowded market segment, etc.

 

 

Don’t use Outbound Lead Generation for

 

Urgently find one next customer

The ramp-up time for outbound lead generation (sourcing target companies and their buyers, preparing your value proposition and testing various sales messages) is relatively high. Outbound lead generation is optimized for leads/month but at the cost of time-to-first-lead.

 

Small target audience

If your target audience is very small (let’s say below 20 companies in a particular country) outbound lead generation is not the most effective way to get in contact with their buyer personas. If you have a small TAM (total addressable market) you have to use EVERY possible way to get and stay in contact with your audience.

 

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