In the high-stakes world of Demand Generation, a glaring, uncomfortable truth emerges: our incentive systems are not just outdated—they’re sabotaging our success. Rooted in antiquated practices, our approach to engaging buyers is fundamentally flawed. Extensive research, including Kerry Cunningham’s insightful study, It’s (Nearly) Over Before You Know It, reveals that while buyers typically meet vendors at 70% of their purchasing journey, they consume content throughout. Yet, our DemandGen incentives remain focused on setting meetings, ignoring crucial buying behaviors.
Let’s look at an example
An individual downloads a whitepaper, becoming a Marketing Qualified Lead (MQL). At this early stage, they are gathering information about the industry, not ready to commit to a meeting. However, our current incentive system pushes us to prematurely lure this person into a meeting using tactics like offering free lunch, gift cards, gated content, cold calls, etc which often deter rather than engage potential buyers. When we notice multiple leads from the same company, the signaling effect can lead to even more aggressive tactics that ultimately create a poor impression and diminish buyer confidence.
The Fallout of Faulty Incentives
Here’s the hard truth about our misguided incentive structures:
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Engagement at the Wrong Time: By incentivizing BDRs and sales reps to engage late in the buyer’s journey, we’re essentially ensuring that we miss the boat.
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Wasted Resources: We’re squandering our best tools and talents at times when they’re least effective.
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The Neglected Early Journey: The start of the buyer’s journey, where opinions are formed and preferences are shaped, is critically undervalued. If you’re not there from the beginning, you’re practically handing the competition your share of the pie.
Why is this happening?
How did we end up creating such ineffective practices? The reasons are deeply ingrained and tied to outdated modes of thinking:
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Buyers in Control: Today’s buyers control their journey. They research, compare, and make informed decisions well before engaging with sales teams. They do not want to be sold to; they want to be understood and helped. Traditional metrics like MQLs, SQLs, and DEMO meetings originate from a time when the buyer’s journey was much more linear and less informed.
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The Convenience of Simple Metrics: Leaders love simplicity. Numbers like leads, meetings, MQLs, and SQLs are easy to digest and report on, but they do a poor job of capturing true engagement and intent.
The New Rules of Engagement
In contrast, brands that are crushing their revenue goals and commanding market dominance see the buyer’s journey differently. They adopt strategies like:
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Early Enablement by BDRs: The role of BDRs isn’t to book meetings; it’s to empower and educate potential buyers long before they’re ready to talk.
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Nurturing with Precision: Forget spamming inboxes. Intelligent nurturing means engaging with potential buyers by providing valuable, targeted information that they consume willingly, setting the stage for a deeper connection.
Conclusion: A Call for Radical Change
It’s time for a radical realignment. As CMOs and CROs, it’s our duty to question and overhaul how incentives are structured. We must shift from a simplistic, metric-focused view to a nuanced strategy that respects and reflects the complexity of buyer behavior. Only then can we claim true alignment with our market and pave the way for sustainable, impactful success.
