The 5 Most Common Challenges: Life Science Lead Generation

As powerful as having a lead generation strategy is, it doesn’t come easy. The concept of lead generation itself may be simple, but that doesn’t mean it can be done without a well thought out strategy in place.

This is especially true in life sciences, where prospects are highly educated, and what’s more – they’re time-poor. Frequently, these contacts are well-read, and stick to trusted publications and networks or communities. Furthermore, the purchasing process can be lengthy and involve numerous decision-makers and stakeholders.

Here are 5 lead generation challenges that are encountered by most life science executives:

1. “WE ARE NOT GETTING HIGH QUALITY LEADS”

You may have an extensive list of leads in your sales pipeline, but are any of them converting into qualified prospects? If not, it may be time to rethink your lead segmentation and qualification frameworks.

Lead segmentation refers to the process of categorizing and grouping potential leads or prospects based on specific criteria relevant to the industry. Lead segmentation allows life sciences companies to better understand their target audience and tailor their marketing and sales strategies accordingly.

Lead qualification consists of asking targeted questions to ensure that the prospective client meets your company’s ideal customer criteria. There are a variety of ways to qualify, and some methods include BANT, CHAMP, MEDDIC, ANUM, FAINT etc. You must know these methodologies if you want to succeed.

B2B life sciences companies typically experience longer sales cycles due to the complexity of their products and services as well as the need to involve multiple decision makers, including management departments, investment teams, and industry regulators, who need to review and approve the purchase. B2B life sciences companies also typically sell higher-priced, specialized products so that customers may need to invest more time researching and evaluating the product and its features before deciding whether to buy. Additionally, B2B sales cycles often involve complex contracts and negotiations that can take weeks or even months to finalize.

Through effective lead segmentation and qualification, outbound sales teams can be more efficient, increase their conversion rates, and effectively allocate their resources to prospects who are most likely to become customers. This approach ultimately leads to better sales outcomes and improved overall performance for the sales organization.

2. “WE MAY BE MISSING LOTS OF OPPORTUNITIES”

With so much prospects in the sales pipeline, it can be difficult for lead generation teams to keep up with the amount of work needed to follow-up. This is especially troublesome when high-converting business opportunities get lost in the mix.

If your sales or marketing teams are struggling to follow up with the right leads for your business, it’s essential that you implement the right strategies and tools to help you keep up with them and connect at the right time. You don’t have to use the latest technologies – this isn’t rocket science. It can be done through the same CRM platform that you already use.

With the right extensions, your marketing and sales teams can set a date and follow up with qualified prospects. The worst thing that can happen besides not having a full pipeline is to have a pipeline full of missed opportunities.

3. “WE ARE LACKING ACCURATE PROSPECT DATA”

Generating quality leads starts with having accurate data about your prospects. Lots of B2B companies struggle with prospecting simply because they don’t have a process for lead segmentation. Companies rely on business referrals or word of mouth, while other companies purchase prospecting lists. Either way, salespeople should follow up with these contacts to verify whether or not that they are, in fact, the right leads for you.

Some of the most common challenges are encountered when dealing with gatekeepers (the people who answer the phone). When calling the prospective business and asking for a specific person, gatekeepers may say that the person you want to speak to is no longer the best point of contact. You should thank them and ask for the contact person of the new person involved in making purchasing decisions. Also, remember that gatekeepers don’t patch calls through, unless you have the exact contact name. Always research the company before calling. Sales prospecting platforms may be valuable resources to use because you can find the most up-to-date information about potential decision-makers, including their name, job title, email address, and more.

4. “WE ARE NOT GOOD AT NURTURING LEADS”

Without a proper lead nurturing campaign, your outbound sales efforts may not be sustainable. Most prospects do not respond to unsolicited emails. If you email a prospect once and qualify them out of the sales pipeline after the second or third attempt to connect, you may be losing opportunities

Lead nurturing is often the most challenging part of an outbound sales strategy. Not only because it’s the phase that most leads stay in, but also because it requires a lot of strategizing, creating a follow-up plan, and trusting your intuition.

Here are some of the most common challenges that sales and marketing teams face with respect to lead nurturing:

Life Science Lead Generation: Choosing the best content

Life sciences products and services are often scientifically and technically advanced. Communicating the value and benefits of these offerings to potential leads can be difficult. Lead generation efforts need to bridge the gap between you nd the target audience's level of comprehension.

Another common challenge of lead nurturing is picking the best content to create and present to leads. That is why researching leads before contacting them is essential for lead nurturing because it enables to present a more targeted content. Developing effective content requires really knowing your target audience and understanding what they may be interested in learning more about.

Knowing when to follow-up

Many sales representatives struggle with identifying the right time to follow-up with leads in the sales pipeline. If you wait too long to reconnect with a prospect, you could miss a major opportunity (market research studies have shown that leads are 21 times more likely to convert into a customer if they respond within 5 minutes!). If you reach out too frequently, you risk turning off the prospect from ever doing business with your company.

Determining the proper follow-up method

Some follow-up methods are more effective than others, but many sales teams struggle to follow-up with leads through the right platform. If you are more successful at getting sales appointments by calling leads, then calling the prospect is the best way to build that relationship. Always consider your target audience, their stage in the sales funnel, and their habits when determining the best follow-up method.

How to measure lead nurturing success

Many sales teams struggle to figure out what they’re supposed to be measuring. As you analyze your lead nurturing strategy, consider the following metrics:

• Number of calls made until a prospect turns into an appointment

• Number of pitches made to a prospects in the lead nurturing phase

• Number of leads that convert to meetings

• Average number of calls to appointments ratio

• Sales appointment no-show rates, etc.

A good way to find, track, and analyze these metrics is by integrating a customer relationship management (CRM) platform into your outbound sales efforts. Gathering and interpreting this data manually can be time-consuming, which leaves sales teams less time to call and pitch leads in the sales pipeline. By understanding the metrics of your lead nurturing plan, you have the opportunity to understand if your strategy is working. If not, then you can make adjustments accordingly.

5. “IN-HOUSE COSTS ARE TOO HIGH”

Here is arguably the most common challenge (yes, we have intentionally kept it for last!). Executing a successful lead generation campaign costs money – a lot of money. Here is a general cost breakdown:

HR costs

These are the costs associated with recruiting, interviewing, and hiring new staff members. It can take months of searching to find the right sales or marketing professional for your company. Managing job postings, calling potential hires, handling scheduling, attending interviews and managing paperwork. Depending on how long the process takes, you might end up spending thousands of dollars in labor before your new sales reps reach their first day.

Training costs

The average company spends over $1k on training. Combine this with the hidden costs of training new employees — onboarding time, mentors, instruction materials, learning management systems and lost productivity - you could easily dropping a few thousand dollars to train your new sales person.

Salaries

Depending on geography and experience, the average sales rep’s base salary ranges between $50-100k. That is equivalent to about $4-8k per month in base salary alone.

Taxes, benefits, and bonuses

Salary isn’t the only way you compensate employees. In some cases, you most likely contribute to various employee benefits, including medical insurance, life and disability insurance, and retirement plans. On top of all that, sales jobs typically include some type of supplementary income, which means you could be spending a few extra thousands on bonuses and commission each month.

Tools, licenses and software

Costs associated with automation tools, software systems and sales databases that you would have to purchase for your team members, an inside sales team can easily cost you hundreds of dollars each month.

So, why would any business choose to generate leads in-house?

The most common reason is surprisingly simple: they are not aware of the cost benefits of outsourcing. When you hire an outsourced lead generation company, the benefits are obvious from the very beginning:

• A list of promising prospects in your target area, complete with thorough and accurate information about their company

• A guaranteed number of appointments each month

• A team of outbound marketing professionals dedicated to your account

• Custom marketing collateral designed to support your sales program

• Weekly or bi-monthly check-in meetings

In addition to these benefits, you also get perks that are harder to quantify. For example, if you are looking for an experienced business development professional, salary costs would be even higher than the ones mentioned above. With a more junior profile, it might take them years to nail down a structured lead generation strategy that gets you consistent results.

When you outsource your lead generation campaigns, you are getting a team of professionals (e.g. Partner Success Managers) working for you, and a guaranteed number of qualified sales meetings during a given period. Fluctuations in sales activity don’t impact your bottom line as they do with an internal sales team. Your upfront payments are predictable and additional (contigency) fees may be due only when you make a sale.

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