April 25, 2024

The Pitfalls of Over-Reliance on Sales and Events in Pipeline Generation

By Michael G. · 2 minute read

Here we go again, bashing our sales counterparts. Don’t worry, we love you, however, we’ve noticed a ton of organizations heavily relying on traditional sales methods and periodic events to generate their sales. Those that do so tend to play a very risky game. In sales-led companies with limited budgets, the approach of learning so much on sales is proving to be ineffective and unsustainable long term. Here’s a deeper dive into why this model is not only problematic, but how you and your team can shift toward marketing-driven strategies to stabilize and enhance pipeline generation… TL;DR, this all helps to boost sales outcomes, haha.

The Limitations of a Sales-Heavy Approach

Most sales-led companies shift all of their focus on direct selling tactics and event-based marketing which includes trade shows, seminars, and networking events. While these methods can yield somewhat immediate results, they also have a ton of limitations.

Sustainability: Sales cycles that depend on events are vulnerable to external disruptions, as seen during the COVID-19 pandemic.
Scalability: There's a cap on how much and how quickly you can grow when relying on physical events and traditional sales calls.
Buyer Engagement: Modern buyers spend considerable time online. A strategy that does not engage buyers where they spend most of their time — digital platforms — misses out on significant engagement opportunities.

The Case for Digital and Buyer-Centric Channels

Transitioning to more buyer-centric channels doesn’t only align with where the buyers are, but it also increases the likelihood of meeting aggressive sales targets. Here’s why investing in such channels is beyond beneficial:

Broader Reach: Digital marketing allows you to reach a larger audience more effectively and efficiently than traditional methods.
Enhanced Targeting: Technologies in digital marketing enable more precise targeting and personalization, which can lead to higher conversion rates.
Continuous Engagement: Unlike events which are time-bound, digital channels allow for ongoing interaction with potential customers, keeping them engaged and moving through the sales funnel.

Growing Marketing Generated Pipeline

When putting together the puzzle of hitting aggressive sales projections, the key is growing a marketing-generated pipeline. This would mean a company has to undergo a strategic shift from being predominantly sales-led to marketing-led. Here are steps organizations can take:

Diversify Acquisition Channels: Invest in a mix of organic and paid digital marketing strategies to attract and convert leads across various platforms.
Content Marketing: Develop valuable content that addresses potential customers' pain points and establishes your brand as a thought leader in the industry.
Utilize Data Analytics: Harness the power of data analytics to refine marketing strategies and improve ROI.

Navigating Organizational Change

This shift doesn’t just mean you have to transfer to marketing tactics. It means a change in the company’s mindset and allocation of resources. Marketing leaders need to advocate for more substantial budgets that reflect the importance of digital marketing. Here’s how:

Lobbying for Support: Marketing leaders should present data-driven cases to CEOs and Boards to secure the necessary budgets for digital transformation.
Education and Training: Invest in training for marketing teams to stay abreast of the latest digital marketing tools and techniques.
Cross-Departmental Collaboration: Foster collaboration between the sales and marketing departments to ensure alignment on strategies and goals.

Takeaways

Companies have to put their foot down and let go of the old, traditional, sales-heavy approaches to meet modern market demands and consumer behaviors. If, or when, a company turns to investing in digital marketing and buyer-centric channels, business can achieve a more stable and scalable pipeline, positioning themselves for more success that’s actually sustainable. The transition to a marketing-led approach may take some time, however, it’s essential for companies aiming to meet and exceed their sales projections in the new market landscape.