Boost Revenue with the Right B2B Marketing Funnel
One of the most important decisions to be made when designing a lead-to-revenue (L2R) strategy is the type of B2B marketing funnel model to support your revenue goals. There are lots of permutations but fundamentally, it comes down to a choice between two major flavors: wide or narrow funnel. I’ve talked to CEO’s who want a large number high-quality leads at a low cost-per-lead. While this sounds great in theory, there is almost always a trade-off between quantity and quality – unless you are willing to spend exorbitant sums to achieve this goal.
Wide Funnel – Type A: As the graphic illustrates, this type of funnel is designed to create lots of activity early in the lead-to-revenue process by casting a wider net. The goal is to get lots of suspects to opt-in, and use personal (usually telephone) or automated methods to qualify suspects and turn them into prospects. You ask for very little information (e.g. name and email address) in order to encourage response and your content offer is targeted at those who are earlier in their buyer’s journey. In this model, you attempt to separate the wheat from the chaff after the opt-in.
Narrow Funnel – Type B: This funnel model is narrow at the top, because the goal is to generate fewer opt-ins – but with a much higher average quality than type A. To accomplish this, you offer content that is useful for prospects that are closer to a buying decision and you ask for lots of information from the prospect. This will definitely reduce response from those who are early in the buyer’s journey and in this model, you attempt to separate the wheat from the chaff before the opt-in.
Note what the two B2B marketing funnels have in common. First, you still have to go through the same qualification and selling steps and once the leads are qualified, you should achieve the same conversion metrics with either model. In other words, you can be just as productive with either model from a revenue standpoint. Second, the costs to fill the top of the funnel may be the same with either model, although you can save some expense because of the reduced cost of personal lead qualification on the narrow funnel.
Funnel B has the advantage of keeping your inside and direct sales reps focused on prospects that are more likely to buy in the short-term. This is because you are using your marketing messaging and opt-in process to discourage those not currently in the market for your products or services. However, the narrow funnel has a huge disadvantage – you don’t get to keep talking to the people who opted-in but were not yet ready to engage.
Using the examples above – if you implement Funnel B, there are 600 inquiries that you don’t get a chance to nurture and convert into qualified leads at a later date. And remember, once you have paid for the initial acquisition, you can often convert these prospects into opportunities at little or no cost. Our experience shows that you can often get another 50-75% sales downstream from the pool of those not ready to engage in the short-term. Again, using the above numbers, this would cost you another 10-15 sales.
So which B2B Marketing funnel is right for you? For the reasons mentioned in the two preceding paragraphs, I usually recommend the wide funnel (type A), but there are exceptions. Best to carefully consider the ramifications of each approach and make the right decision before you lock in your marketing programs.