Velocify, provider of sales acceleration platforms, announced the results of its “Lead Trends Report,” revealing that the fastest-growing companies get better sales results by purchasing leads at a higher volume and price. Based on responses from hundreds of sales and marketing professionals, the report finds that companies still rely on purchased leads more heavily than any other type of lead, despite concerns that purchased leads are becoming too expensive or are low quality.
The report uncovered that lead quality is of the greatest concern among lead buyers, with 84% believing lead providers must improve lead quality. Yet the survey findings suggest that purchased leads still hold the greatest value:
- Respondents reported that purchased leads account for 27% of their total lead volume, which is higher than any other lead source.
- Despite the planned growth of non-purchased lead types, fewer than 20% of respondents reported planned decreases in purchased leads and more than 30% plan to increase purchased leads.
- 45% of lead buyers plan to increase their investment in high-quality leads.
“The report findings help dispel the common myth that all purchased leads lack quality and are not worth the investment,” said Velocify CEO and President Nick Hedges. “In fact, many high-growth companies have found great success not only by choosing to invest in purchased leads, but by increasing their investment in those opportunities.”
Survey participants reported from a wide range of industries that have traditionally relied heavily on purchased leads for growth, including mortgage, business and professional services, technology, and insurance. The majority of companies reported annual revenue of greater than $10 million, with 10% reporting greater than $1 billion.
Respondents from high-growth companies (revenue growth of more than 20% annually) are purchasing a higher volume of leads compared to slow-growth or stagnant companies: 67% of high-growth companies report monthly purchased-lead volumes of 500 or more.
The new report uncovers several best practices that high-growth companies use, which can help guide companies that want to improve sales performance:
- High-growth companies are 125% more likely to evaluate new lead providers at least quarterly.
- Companies experiencing significant growth have a higher percentage of purchased leads and a lower percentage of referral and direct mail leads, compared to companies experiencing less growth.
- High-growth companies are spending more for higher quality leads. On average they spend $86 per lead, compared to the average spend of $42 per lead reported by all lead buyers surveyed.