Diagnosing B2B Business Pain Points: Do You Have A Sales Problem or A Lead Generation Problem?

Diagnosing B2B Business Pain Points: Do You Have a Sales Problem or A lead Generation Problem

Lead generation and sales play a significant role in all organizations. The ability to generate leads and successfully convert them into a sale impacts the growth and future of an entire organization. Frequently, people encounter obstacles within their lead generation and/or sales efforts.

Identifying the root cause of underwhelming sales results can be challenging. Is it the sales team’s performance in the later part of the sales process, or the effectiveness of lead generation that’s stalling growth? This article will guide you through the process of distinguishing the differences between a sales problem and a lead generation problem, allowing you to better streamline your efforts and processes to ultimately drive growth.

1. Understanding the Basics: Sales Problem vs. Lead Generation Problem

Before diving into the diagnostics, it’s crucial to understand the core differences between a sales problem and a lead generation problem:

Sales Problem: If you have a sales problem, your sales team is struggling to close deals despite receiving a healthy flow of leads. The issue lies in the conversion process, potentially indicating problems with your sales strategies, communication, or follow-up tactics.

Sales problem
Lead Generation problem

Lead Generation Problem: On the other hand, a lead generation problem arises when your sales team is skilled and motivated, but they lack enough quality leads to engage with. This can be attributed to weaknesses or lack of a lead generation strategy, targeting, or positioning in the market.

2. Analyzing the Symptoms

Sales Problem Symptoms:

  • High Number of Unsuccessful Closes: If your sales team is consistently losing deals at a higher rate than industry norms, it’s a sign that there might be a problem with your sales process.
  • Difficulty in Overcoming Objections: If your sales reps struggle to address objections effectively and guide prospects toward a close, your sales strategy, marketing materials or nurturing approach might need refinement.
  • Low Conversion Rates: When your conversion rates are significantly below industry averages, it’s a red flag for a sales problem.

Lead Generation Problem Symptoms:

  • Inconsistent Lead Flow: If your sales team frequently experiences periods of low or erratic new business lead flow, your lead generation strategies could be falling short.
  • Lack of Quality Leads: Quality matters more than quantity. If the leads generated are not aligning with your target audience or ideal customer profile, it’s a clear indication of a lead generation problem. 
  • High Sales Team Idle Time: If your sales team finds themselves with too much idle time due to a shortage of qualified leads to engage, you likely have a lead generation problem.

3. Data-Driven Analysis

To diagnose whether your issue stems from sales or lead generation, gather and analyze relevant data:

Sales Analysis:

  • Review conversion rates at each stage of the sales funnel.
  • Analyze sales team performance metrics, such as call-to-close ratios and average deal size.
  • Collect feedback from the sales team regarding challenges they face in closing deals.
Sales analysis
Lead Generation analysis

Lead Generation Analysis:

  • Assess the sources of your leads and their conversion rates.
  • Study demographic and firmographic data of leads to ensure they match your target audience.
  • Monitor the effectiveness of lead nurturing campaigns and content engagement.

4. Feedback from the Frontlines

Engage in open conversations with your sales team to gain insights into their challenges. Are they struggling to connect with leads, or are they finding it tough to seal the deal even with interested prospects? Their feedback can provide valuable information about the root cause of the problem.

5. Implement Solutions

Once you’ve identified whether the issue is a sales problem or a lead generation problem, take strategic actions to rectify it:

Sales Problem Solutions:

Provide sales training and coaching to improve objection handling and closing techniques: when implementing this into your strategy, you can see more positive results in your sales process as well as a better customer experience.

Review your sales processes and identify bottlenecks that might hinder conversions: this allows you to see what you might be doing wrong and even what you are doing right so you can make changes and adjustments to your strategy to better overcome those challenges.

Optimize communication channels for better engagement: doing this can be a great way to keep your audience engaged with your brand and what you’re offering as well as creating brand awareness and nurturing your leads.

Lead Generation Problem Solutions:

Refine your target audience and ideal customer profiles: this ensures that you are directing your efforts to the right audience and avoids wasting time on people you may be uninterested in what you are offering.

Experiment with different lead generation channels to diversify lead source: doing this allows you to reach a wider audience of prospects that can benefit from what you are offering and are more likely to convert into customers. Another benefit to doing this is creating more brand awareness.

Create compelling and relevant content to attract and nurture high-quality leads: creating content that attracts your audience can be a great way to interest them in your brand and what you’re offering. Continuing to post high quality content keeps you relevant and at the top of their mind.

Pinpointing whether your business has a sales problem, or a lead generation problem requires a thorough analysis of data, a holistic view of the sales process from start to finish, and candid conversations with your sales team. Once you have the problem identified, it can take some trial and error to find the best methods to resolve the issue and create an active sales pipeline with tailored strategies and efforts in the competitive B2B landscape.

Check out our previous blog Houston We Have a [Sales] Problem to learn more about how to better handle problems that come up during your sales efforts.

Are you facing problems with your sales or lead generation? Let us help! MPI has worked with a variety of clients from different industries, conquering their sales and lead generation problems using sales strategies that meet their unique needs. Connect with us today to learn more: