25+ Essential Lead Generation Statistics [2023]: Facts And Trends

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Research Summary: Identifying and growing new customers is an essential part of any successful business. This process is typically referred to as lead generation and is a varied process used by businesses and marketers, large and small.

If you want to find out more about the importance of lead generation, here are some crucial insights our research uncovered:

50% of marketers view lead generation as a top priority.
53% of marketers spend at least half their budget on lead generation.
37.1% of marketers find generating high-quality leads to be the biggest challenge.
73% of b2b marketers use content to generate leads.
80% of leads never convert to sales.

For further analysis, we broke down the data in the following ways: Content Marketing | Conversion | Marketer Opinions | Nurtured Leads | Lead Behavior

average lead generation cost by channel

Lead Generation Strategy Statistics

Though similar, every company develops its own method for successful lead generation. To do so, companies develop strategies that suit their individual needs. For example, here are some key lead-generation strategy statistics:

84% of marketers use form submissions to collect inbound leads.

Submission forms are the most common method used by marketers to collect leads, especially in the online space. Even non-online businesses use this method, as 74% of all companies use web forms for lead generation.
50.3% of marketers use phone calls for conversions.

Phone calls are the second most common method companies use in an attempt to generate leads. Calls are growing less common over time, though, as younger consumers prefer filling out simple forms.

Most Common Methods Used to Collect and Convert Leads

Method Share of marketers

Form submissions 84.0%

Phone calls 50.3%

Live chat 33.2%
72% of marketers with 5+ years of experience believe social media is effective for lead generation.

With experience comes a fondness for social media. For instance, only 42% of marketers with less than a year of experience say social media is effective.
77% of marketers use automation software to convert more leads than those who don’t.

Lead generation is by far the most popular reason for automation, as 35% of business owners and marketers say the top reason they use automation is to generate leads.
49% of marketers say organic search leads to the most leads.

The reason why 69% of marketers invest in SEO is because organic search leads are one of the easiest and most effective ways to gain leads. Further, 61% of B2B marketers say organic search generates the most leads, making SEO even more valued in that marketing sphere.
80% of B2B leads come from LinkedIn.

97% of B2B companies and marketers use LinkedIn as the driving force for their marketing strategy.

Method	Share of marketers
Form submissions	84.0%
Phone calls	50.3%
Live chat	33.2%

Content Marketing Statistics

Creating content is one of the most basic and essential methods of generating leads, on top of other benefits. To find out more about how content marketing affects lead generation, here are some key facts:

Blogging increases lead generation by 126%.

Businesses who choose to blog generate 126% more leads than those who don’t, while businesses who post frequently (two to four times per week) generate up to 450% more leads.
Content marketing costs 62% less than traditional marketing.

Content marketing costs significantly less than traditional marketing. In fact, a lot of content marketing is free for small businesses that know how to create compelling, SEO-optimized pictures, blog posts, and more.
Content marketing generates 3x more leads than traditional marketing.

While not directly correlated with ROI, the content market tends to have a higher ROI due to reduced costs paired with better outcomes.
67% of marketers say content marketing generates leads.

The majority of B2C and B2B, 70% and 73%, use content marketing as part of their lead generation strategy.

Conversion Statistics

Leads are a crucial first step when it comes to running a business but being able to convert those leads into sales and consumers is just as important. To dive deeper into how lead generation must lead to conversion, consider these statistics:

68% of companies have not identified their sales funnel.

It’s impossible to optimize a marketing strategy when sales funnels aren’t identified. For example, if a company earns most of its consumers through the process of organic search but doesn’t fully know or understand that, they can’t optimize their SEO in order to create a more effective sales funnel.
Companies with lead-generation strategies generate 133% more revenue on average.

Being able to generate an average of 50% more sales at 33% lower costs inevitably leads to much higher revenues for companies, showing just how important it is to prioritize lead generation.
44% of sales representatives are too busy to follow up with leads.

This can be a huge oversight, given that the average sale requires at least five follow-ups after the initial lead.

Marketer Opinions on Lead Generation

Given that marketers specialize in creating positive outcomes for businesses through content and other advertisements, their opinions on lead generation can help guide businesses toward what is most effective. Here are some examples of marketer opinions on lead generation:

68% of B2B businesses struggle with lead generation.

Some of the most common reasons why companies struggle with lead generation include:
- Lack of funding
- Lack of organization
- Small teams
- Miscommunication
- Failing to follow up and nurture leads
95% of marketers believe they know which channel generates the most leads.

27% of marketers say that organic search generates the most leads, while 20% claim social media generates the most. Of course, the majority of marketers make use of both channels.
Only 18% of marketers think outbound lead generation provides valuable leads.

Outbound lead generation (i.e., contacting prospects directly through phone calls, direct mail, emails, etc.) has become less and less popular.

Nurtured Leads Statistics

Being able to nurture leads is essential for creating customers and growing sales. Unfortunately, many businesses still neglect to nurture their leads. Here are the facts:

Nurtured leads generate 50% more sales.

That’s the difference between making $500,000 in sales per month, or $750,000, which can make a huge difference for small and large businesses alike.
Nurtured leads cost 33% less on average.

Not only do nurtured leads generate more sales, but they also end up costing less in the long run. For example, a company with unnurtured leads might have $500,000 in expenses per month, while a company that nurtures its leads would only spend $375,000.
The average business generates 1,877 leads per month.

The average cost per lead across all industries is $198.44. With so many leads, reducing cost per lead through nurturing starts to make a big difference very quickly.

Lead Behavior Statistics

The way consumers and businesses react to leads can make a big difference in the outcome. For instance, ignoring leads can have a catastrophic effect on sales. Here are some examples of consumer behavior:

87% of people ignore cold calls.

Cold calls are a highly ineffective way of growing leads and generating new customers, as only 2% of all cold calls result in an appointment being made.
50% of consumers make at least one monthly purchase after reading a brand’s email.

Emails are an inexpensive and effective way to grow leads and generate customers. In fact, 49% of all consumers actually want to receive weekly promotional emails from their favorite brands.

Lead Generation FAQ

What is a good lead conversion rate?

A good lead conversion rate is 2% – 5%. The global average for a good lead conversion rate is 2.4%; however, companies that can achieve conversion rates of 4% or higher are much more successful.

Of course, these numbers also change from industry to industry, with B2B E-commerce only having an average lead conversion rate of 1.8% and Personal Services having an average lead conversion rate of 4.6%.

industries by average lead conversion rate

Average Lead Conversion Rates by Industry

Industry	Average lead conversion rate
Professional Services	4.6%
Industrial	4.0%
Auto	3.7%
Legal	3.4%
Dental & Cosmetic	3.1%
Finance	3.1%
Healthcare	3.0%
B2B Services	2.7%
Real Estate	2.4%
Travel	2.4%
Agency	2.3%
B2B Tech	2.3%
B2C	2.1%
B2B E-commerce	1.8%

How much should you spend on lead generation?

The average company spends $198 per lead on lead generation. However, different lead generation channels have different average costs, which can ultimately increase or decrease the amount you need to spend. Here are some examples:

Average Lead Generation Cost by Channel

Channel	Average lead generation cost
Online retargeting	$31
SEO	$31
Email marketing	$53
Social media advertising	$58
Display advertising	$63
Webinars	$72
Referrals	$73
LinkedIn advertising	$75
Content marketing	$92
Search engine advertising	$110
Video marketing	$174
Public relations	$294
Traditional marketing (TV, radio, print)	$619
Events & Tradeshows	$811

How do you calculate lead generation cost?

To calculate lead generation cost, you must divide your total marketing spend by the total number of new leads. For example, if you spent $400,000 on marketing and received 2,000 leads in return, your lead generation cost would be $200 per lead (cost per lead or CDL). This would also be on par with the average CDL of around $198 per lead.
Is it hard to generate leads?

Yes, it can be hard to generate leads. Successfully generating leads can be time-consuming and expensive, but it is worth it in the long run. The key to easier lead generation is to:
- Identify where the majority of leads come from so you can focus on that channel
- Invest in channels that are proven to cost less and have better results (i.e., SEO, social media, or content marketing)
- Identify and improve your most prominent sales funnel
- Ensure that all leads are properly nurtured
What is a good number of leads per day?

A good number of leads generated per day depends on the size of the business. Given that the average number of leads generated per month is 1,877, that means the average number of leads generated per day is between 60 and 62.

However, a very small business might be healthy with less than 50 leads per day, while a larger business might need 150 or more to offset expenses.

Conclusion

Lead generation is a crucial piece of the puzzle for maintaining and growing a successful business. While lead generation can be expensive, there are certain methods and channels that are proven to be more cost-efficient than others.

Search engine optimization (SEO), Content marketing, and emails are just a few examples of some of the most cost-effective channels. On the other hand, cold calls are almost always proven to be a massive waste of money.

When in doubt, it’s vital for companies to analyze their consumer base and identify their most effective sales funnel. That information can then be used to hone in on the channels and methods that generate the most leads.

References

Author

Jack Flynn

Jack Flynn is a writer for Zippia. In his professional career he’s written over 100 research papers, articles and blog posts. Some of his most popular published works include his writing about economic terms and research into job classifications. Jack received his BS from Hampshire College.