Understanding Lead Generation – Insights from a Global Survey

Lead generation is a critical component of business growth, especially in the B2B sector. It involves attracting and converting potential customers into paying clients. But what strategies are companies using? Which methods are most effective? To answer these questions, a comprehensive survey was conducted by TechBehemoths, involving 1,062 B2B service providers from 48 countries. The survey provides valuable insights into the state of lead generation, revealing the most popular channels, effectiveness, challenges, and opportunities for improvement.

Survey Demographics

The survey targeted B2B service providers of various sizes, providing a diverse perspective:

Company Size

Most respondents were from small companies (2-9 employees), making up 33.7% of the sample. Companies with 10-20 employees followed at 25%, while 18.8% represented firms with over 50 employees.

Roles

The majority of respondents were CEO/Founders (50.8%), with marketing professionals (14.3%), business development, and CTOs (12.7% each) also significantly represented.

Understanding Lead Generation

Awareness

A high 98.5% of respondents are familiar with the term “lead generation,” indicating broad awareness within B2B SMEs.

Definition

Lead generation involves attracting potential customers and converting them into paying clients.

Popular Lead Generation Channels

Top Channels

The most widely recognized lead generation channels include social media (95.2%), search engines (94.7%), email marketing (91.8%), and networking (90.4%). Business directories are used by 87%, while outsourcing is less common at 66.8%.

Active Use

Social media is the most utilized channel (85.1%), followed by search engines (82.2%), networking (76.4%), and business directories (71.2%). Email marketing (54.8%) and outsourcing (29.8%) are used less frequently.

Effectiveness of Lead Generation Channels

Business Directories

Rated moderately effective by 32.7% of respondents, with 16.3% considering them very effective.

Paid Search

Viewed as moderately effective by 27.5%, with higher ratings from 52.7% of respondents.

Organic Search

Highly effective for 75% of respondents, with 40.9% giving it the highest rating.

Organic Social Media

Considered moderately effective, with 31.7% rating it as such.

Paid Social Media

Opinions vary, with 45% finding it ineffective, but 46.5% seeing moderate to high effectiveness.

Networking

The most effective channel, with 81.9% of respondents rating it highly.

Lead Generation Challenges

B2B service providers, particularly in the IT sector, face several challenges in lead generation:

• Securing High-Quality Leads: 80.3% of respondents highlighted this as a major challenge.
• Budget Constraints: Affecting 51.4% of respondents.
• Targeting the Right Audience: A challenge for 44.2%.
• Measuring ROI: Cited by 33.7% as a significant hurdle.

Opportunities for Improvement

Despite the challenges, there are clear opportunities for improvement in lead generation:

• Partnerships & Collaborations: Seen as a key opportunity by 74.4% of respondents.
• Lead Nurturing: Simplifying lead management processes is crucial for 66.7%.
• Content Quality: 60% of respondents emphasize enhancing content quality.
• New Marketing Technologies: 51.2% believe in the importance of investing in new tools.
• Expanding Markets: 44.9% see potential in exploring new markets or industries.

Budget Considerations

When it comes to budget, companies have varying approaches to lead acquisition:

• Investment in Lead Acquisition: 31.7% of companies plan to invest, while 26.7% are already doing so. However, 9.9% do not intend to invest, and 4.5% plan to reduce their spending.

Lead Volume Insights

The survey also provides insights into the number of leads generated through various channels:

• Business Directories: 36.4% of respondents receive 1-2 leads monthly, but 33.5% report receiving none.
• Organic Search: Generates 1-2 leads for 32.6% of companies, with 30.2% getting 5+ leads monthly.
• Paid Search: Ineffective for 45% of respondents, while 21.1% receive 5+ leads monthly.
• Social Channels: Organic social media generates 1-2 leads for 43.5%, but 31.9% get none. Paid social media is ineffective for 52.2%, but 15.3% get 5+ leads.

The report highlights the importance of strategic lead generation, particularly through organic and paid channels, networking, and content quality. While IT businesses face challenges, opportunities exist in partnerships, advanced technologies, and market expansion.

Read the comprehensive report here.