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Which is Harder: Sales Lead Generation or Closing?

sales lead generation

 

Sales are one of the most crucial parts of any organization that keeps the lights on and the business running. So it’s natural that there would be some debate for ages about which part of the sales process is more challenging: lead generation or closing.

 

Some entrepreneurs might say that sales lead generation is the hardest part of running a business. Others might say that the last part is the hardest. Of course, generating leads is always challenging for sales teams, but is it more complex than closing the sale?

 

Both the sales processes are intricate in their ways. For example, a sale cannot be made without a lead, and a lead cannot be converted into a customer without being closed. So which one is harder? Let’s explore the differences and decide which is more challenging.

 

Sales Lead Generation vs Closing – Which is more complicated?

 

Lead Generation

 

Lead generation is vital to the success and growth of all businesses. It identifies potential customers and creates a chance to sell products or services. Therefore, you must be very creative, using various methods such as social media and email marketing to reach potential customers. 

 

This is why 61% of marketers say generating leads is their greatest challenge, and almost 53% allocate more than half of their budget to leads. 

 

The key to successful lead generation is generating high-quality leads. Conversely, low-quality leads are a waste of time and resources. Therefore, you should focus on generating leads with a high likelihood of closing. 

 

Also Read: How to Close More Deals in Sales with Deal Review Tips

 

Now, let’s take a look at the other side — closing. 

 

Closing Sales

 

Closing is the final step in the sales process, where you ask the prospect to purchase. Regardless of the different approaches, 30% of the sales reps say dealing with the decision-makers and closing the deal are the most challenging parts of the sales process.

 

A successful closing always needs a delicate balance between convincing and pressure. Too much stress can scare away potential customers, while too little can result in lost sales. The key is to find the right mix of convincing and pressure to make the prospect buy without making them uncomfortable. 

 

The key to a successful closing is having a solid understanding of your product or service and being able to read the customer’s needs and know their level of interest. If you’re not getting good vibes from the customer, it’s probably not worth trying to close them. 

 

Challenges of Sales Lead Generation

 

  1. Identifying the Right Audience: Pinpointing the ideal target market requires research, analysis, and often trial and error. It’s a continuous process of refining and adjusting strategies to reach those most likely to convert.
  2. Building Trust and Credibility: In a world inundated with marketing messages, gaining the trust of prospects is no easy feat. Establishing credibility through effective communication and value proposition is essential.
  3. Overcoming Resistance: Prospects often need to be more open to sales pitches, leading to resistance or reluctance to engage. It seems that convincing them of the benefits of your offering requires finesse and persistence.

Challenges of Closing a Lead/Deal

 

  1. Handling Objections: No sale is without objections. Addressing concerns, overcoming objections, and alleviating doubts require a deep understanding of the prospect’s needs and the ability to provide tailored solutions.
  2. Negotiation Skills: Negotiating terms, pricing, and contracts demands tact and strategic thinking. Finding a balance between meeting the client’s needs and protecting your interests is a delicate dance.
  3. Timing and Persistence: Knowing when to push for the close without appearing too aggressive is crucial. Following up diligently while respecting the prospect’s timeline requires persistence and skill.

So, Which is Harder?

 

There’s no easy answer here. Both lead generation and closing are challenging tasks that require a specific skill set. Which one is harder probably depends on your strengths and weaknesses. 

 

If you’re good at generating leads but struggle with closing, you might find generating leads easier. Conversely, if you’re good at generating leads but find it challenging, you might discover closing easier. 

 

For a business, you know that generating leads is necessary. But what do you do after generating those leads? Closing them can be tricky – but it’s not impossible. 

 

Here are some tips to simplify the process, from lead generation to closing.

  • First, start by identifying your ideal customer. Who are they? What do they need? What are their pain points?
  • Please choose the best day and time to contact them. Don’t use their personal or leisure time.
  • Be in touch with them through emails and keep them warm.
  • Be honest and transparent and build trust with your prospects. Let them know that you have the best solution for them.
  • Offer valuable insights. Share your knowledge and expertise with prospects to show them you can help them resolve their issues.
  • Be persistent but not pushy. Keep in mind that people need time to make decisions. 
  • If a prospect is interested, follow up regularly without being too forceful.

Conclusion

 

By following these tips, you can make it easier for your sales team to have a seamless process.

 

It’s also worth noting that neither task can be accomplished without the other. For example, you need high-quality leads to close successfully and complete them to generate revenue. So, even though one might be more complex than the other for you, they both still need equal attention to succeed.

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