The Leads Aren’t Always the Problem

Before demanding more opportunities from marketing, find out what happens to the ones you already have.

Boulder Punch Lead Funnel Infographic

There’s a conversation I’ve heard some version of throughout most of my career. Sales says Marketing isn’t generating enough good leads. Marketing says Sales isn’t following up on the leads it generates. Leadership gets frustrated with both sides and eventually arrives at what seems like the most straightforward solution: we need more leads.

Sometimes they’re right. Every business needs a healthy flow of new opportunities, and there are certainly companies where marketing simply isn’t creating enough demand. But whenever I hear that complaint, I’ve learned to ask a few questions before recommending another campaign or increasing the budget. How many leads are we generating now? Where are they coming from? How quickly does someone follow up? What percentage are qualified? How many become opportunities? How many opportunities close? What happens to the people who aren’t ready to buy right now? Most importantly, where are we losing them along the way?

The answers are often much more interesting than the original complaint.

I’ve reviewed sales pipelines where leads sat untouched for days before anyone contacted them, opportunities that hadn’t been updated in months, and CRM records with no clear owner or next step. I’ve seen prospects repeatedly engage with marketing content without ever receiving meaningful sales outreach. I’ve also seen marketing teams proudly report growing MQL numbers while salespeople quietly ignored most of those leads because experience had taught them that the qualification criteria meant very little.

Marketing isn’t always innocent in this discussion either. Lead scoring can create a false sense of precision. Someone downloads a white paper, visits the website a few times, attends a webinar, and suddenly crosses an arbitrary point threshold that transforms them into a “qualified” lead. Sales calls and discovers that the person was doing research, has no budget, doesn’t fit the ideal customer profile, or isn’t remotely close to making a decision. After enough of those conversations, Sales stops trusting the leads altogether.

That’s when the familiar finger-pointing begins. Marketing believes Sales isn’t following up. Sales believes Marketing is throwing junk over the wall. Leadership sees a pipeline problem and asks Marketing to generate more volume. Everyone is looking at a different piece of the same system and reaching a perfectly reasonable conclusion based on what they can see.

The problem is that customers don’t move through businesses according to departmental boundaries.

A prospect doesn’t know when they become an MQL or SQL. They don’t know whether Marketing or Sales technically owns the next step. They simply know that they asked for information and nobody called them for four days, or that they downloaded an educational report and immediately received three aggressive sales emails, or that they had a promising conversation with someone and then never heard from the company again. What appears internally as a lead-routing or lifecycle-stage issue is simply their experience with your business.

This is why I’ve always thought of lead management as a shared growth responsibility rather than a handoff between Marketing and Sales. Marketing should understand what happens after the lead is generated. Sales should understand what happened before the lead reached them. Both teams need to agree on who the company is trying to reach, what makes someone genuinely qualified, what behaviors indicate meaningful interest, when a sales conversation makes sense, and what happens when someone isn’t ready yet.

That last group is particularly important because B2B buying rarely happens on the schedule we would prefer. Someone can be a perfect prospect and still not be a current opportunity. The budget may not exist yet. Their contract with another provider may have another year to run. Leadership may have pushed the project into the next planning cycle. They may simply be educating themselves before they’re ready to have a serious conversation.

That doesn’t necessarily make them a bad lead. It makes them early.

A good lead-management process recognizes the difference. Sales shouldn’t waste time repeatedly chasing someone who has no immediate reason to buy, but Marketing shouldn’t throw that relationship away either. Relevant content, occasional communication, product updates, research, events, or a well-timed follow-up can keep the company familiar until the prospect’s circumstances change. Some of the best opportunities I’ve seen spent months or even years somewhere between initial awareness and a real buying decision.

Lost opportunities deserve the same attention. Companies often spend enormous energy measuring how many people enter the funnel and surprisingly little understanding of why qualified opportunities leave it. Did the prospect choose a competitor? Decide to do nothing? Lose the budget? Change priorities? Was pricing the problem? Did the sales process stall? Was the product missing something important? Did another company simply do a better job demonstrating value?

Those answers matter because they tell you whether generating more leads is actually going to solve anything. If qualified opportunities consistently disappear at the same point in the sales process, adding more prospects at the top may simply give you more opportunities to lose. If a competitor is winning because its positioning is stronger, that’s a different problem. If prospects repeatedly reach the proposal stage and then go dark, that deserves investigation too. If Sales is converting well but simply doesn’t have enough opportunities to work, then you probably do need more demand.

The point is to know which problem you have.

There’s also a basic economic reality here that sometimes gets overlooked. Creating demand is expensive. Companies invest in paid media, content, events, SEO, email, agencies, marketing technology, internal teams, and countless other activities to attract prospects. Every lead represents some portion of that investment. When leads are routed poorly, ignored, contacted too late, or abandoned because they aren’t immediately ready to buy, the company isn’t simply losing a name in the CRM. It’s wasting part of the money and effort it already spent acquiring that person's attention.

That’s why one of the most useful exercises I’ve done with companies is surprisingly simple: take a sample of actual leads and follow them through the entire process. Look at where they came from, what they did, how they were scored, when they were routed, who contacted them, what happened next, and where the relationship ultimately ended. Don’t review what the process is supposed to do. Review what happened.

You can learn a lot from twenty leads.

Sometimes you discover that Marketing is generating exactly the wrong people. Sometimes you discover that strong opportunities are getting buried in a messy CRM. You may find that response time is terrible, qualification standards differ by salesperson, or nobody has clear responsibility for prospects who aren’t ready to buy. You may also discover that the system is working quite well and the business genuinely needs more leads.

Any of those conclusions is useful because now you know what to fix.

I’m a big believer in demand generation, and I’ve spent a substantial part of my career helping companies create more of it. But more volume is only valuable when the rest of the organization can turn that interest into something meaningful.

Before you spend more money filling the funnel, make sure you understand where it’s leaking.

You may already have more opportunities than you think.

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