The debate between sales and marketing on who should claim credit for lead generation, and consequently, revenue generation, is not a new phenomenon. What most fail to recognise is the close-knit relationship between the two functions. In this article, Rainmaker SOS seeks to address the question: Is lead generation a sales or marketing function?
Understanding Lead Generation
Lead generation involves attracting and engaging potential individuals who could eventually convert into clients or customers. The process may seem daunting for many companies, but the key lies in understanding your audience and the channels that you will employ.
As businesses aim to stabilise their revenue and continue expanding, lead generation has become increasingly crucial. As experts in lead generation, Rainmaker SOS provides robust solutions to help your business plan and generate more revenue in the long run.
The Case for Sales
So why could lead generation be considered a sales function? When it comes to pursuing leads and pushing them down the sales pipeline, it often falls under the sales domain. Salespeople often resort to cold calling or prospecting to gauge a customer’s interest in the company’s products or services. Later in this article, we delve into SQLs (Sales Qualified Leads) and their role in the lead process.
The Case for Marketing
Contrary to sales, the marketing approach leverages social media, email marketing, and SEO content to build and promote your brand, ultimately generating leads. While marketing does indeed generate leads, the main difference between the sales and marketing approaches lies in the conversion time. The marketing process may require multiple content pieces or social media interactions before converting a lead into a sale.
MQL vs SQL
A critical aspect of lead generation is lead qualification, involving Marketing Qualified Leads (MQLs) and Sales Qualified Leads (SQLs). Both marketing and sales approach lead generation differently.
An MQL is a prospect deemed by the marketing team as likely to turn into a sale, though not quite ready to buy yet. These leads generally require more marketing, taking longer to convert.
In contrast, an SQL is a prospect who has journeyed through the sales funnel from engagement and is prepared to progress down the sales process. These leads have shown purchasing intent and meet the criteria to be potential paying customers.
The primary distinction between the two lies in the readiness to buy, underscoring the need to understand this difference, as it directly affects potential customers’ position within your sales process.
The Common Ground
So, what’s the common ground? The debate is unlikely to cease anytime soon due to the compelling arguments both sides present. However, it’s crucial to understand that both sales and marketing play integral roles in lead generation, closing leads, and promoting a healthy revenue pipeline. The synergy between these teams is indeed a winning combination.
When determining a lead’s position in the process, both sales and marketing consider specific criteria, including the lead’s behaviour, whether they are a first-time or repeat visitor, and their stage in the buying cycle.
The Final Verdict
In conclusion, the debate over whether lead generation is a sales or marketing function will continue. The key takeaway is the importance of generating revenue to stabilise your business and create additional offerings. The most effective strategy is to have the entire business work as a unified force.
If you would like to find out more about Rainmaker SOS and how we can help you, then click here to find out more.
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