In today’s rapidly evolving business landscape, many IT service companies face a significant challenge: the changing dynamics of lead generation. While these companies often have highly optimized processes and tools for managing leads once they come in, there is a noticeable lack of focus on actively generating new leads. Instead, the prevalent approach is largely passive, relying on Requests for Proposals (RFPs) from both existing and new clients, as well as leads that emerge naturally through ongoing client relationships.

Passive lead generation can be effective to a certain extent. After all, existing clients and incoming RFPs provide a steady flow of business opportunities, and maintaining strong relationships with current clients is a fundamental aspect of any successful service-based business. However, relying solely on these passive methods poses a significant risk. When the volume of passive leads declines or fails to keep pace with business goals, companies may find themselves facing an insufficient sales pipeline, threatening their growth and competitiveness.

“To fill your pipeline, you need to be relentless in your pursuit, always following up and ensuring you are top of mind for your prospects.”, Grant Cardone

The crux of the issue lies in the fact that many sales organizations within these IT service companies are primarily designed to handle and process leads rather than actively seek out new ones. This approach is ingrained in their culture, with established processes and tools that support pipeline management but do little to encourage proactive lead generation. As a result, these companies often struggle to adapt when the passive influx of leads does not meet their needs.

To address this problem, it is essential to explore how a sales organization adept at processing leads can pivot toward generating new leads. This involves a fundamental shift in mindset and strategy, requiring both the development of new skills and the implementation of targeted initiatives. By understanding the limitations of the current passive approach and recognizing the need for proactive lead generation, IT service companies can build a more resilient and dynamic sales pipeline, ensuring long-term growth and sustainability in an increasingly competitive market.

Navigating the New IT Services Buying Landscape

The buying environment in IT services is undergoing a significant transformation, driven by technological advancements and shifting client expectations. Historically, many IT services were specialized offerings that required bespoke solutions and personalized attention. Companies could rely on the uniqueness of their services to attract clients. However, as the industry has matured, a substantial portion of these services has become commoditized. Routine IT functions like basic support, infrastructure management, and standard software implementation are now widely available from numerous providers, often at competitive prices.

Commoditization means that the same rules of lead generation no longer apply. Clients looking for commoditized services are typically driven by cost efficiency and ease of access, rather than deep relationships or tailored solutions. This shift has made traditional lead generation approaches less effective, as potential clients can easily compare providers and opt for the most cost-effective option. Consequently, IT service companies need to adapt their strategies to stand out in a crowded marketplace, emphasizing not just cost but also reliability, speed, and additional value-added services.

“The computing industry is undergoing a sea change. For decades, its focus has been on the rapid improvement of individual products—microprocessors, disk drives, operating systems, and software applications. But as the industry matures, and as IT services become more of a commodity, the focus is shifting to larger, more complex systems.”, Nicholas Carr

Despite the prevalence of commoditized services, there are still many areas within the IT landscape that demand more intelligent and sophisticated approaches to lead generation. Advanced and emerging technologies, such as artificial intelligence, machine learning, cybersecurity, and digital transformation consulting, remain complex and highly specialized. Clients seeking these services require more than just a transactional relationship; they need strategic partners who can understand their unique challenges and deliver customized solutions.

In these complex service areas, the need for proactive and intelligent lead generation becomes paramount. Companies must employ targeted strategies to identify and engage potential clients who are likely to benefit from these advanced services. This involves deep market research, understanding client pain points, and positioning the company as a thought leader in these specialized domains. Active engagement through personalized outreach, educational content, and industry networking can help build relationships and demonstrate the company’s expertise and commitment to solving specific client problems.

The Real Reason Your Pipeline is Empty: Sales Teams Avoiding Lead Generation

Many proactive lead-generation approaches happen beyond salespeople, primarily under the marketing department. For example, content marketing involves creating valuable materials such as blogs, whitepapers, eBooks, and case studies that address the target audience’s specific pain points and needs. These resources attract potential leads by showcasing the company’s expertise and offering practical solutions:

• Social media engagement is one of the key strategies managed by marketing. Leveraging platforms like LinkedIn, X, and Facebook, marketers share content, engage in industry discussions, and connect with potential leads. They participate in relevant groups and forums to build relationships and establish authority within the industry.
• Search engine optimization (SEO) is crucial for increasing organic traffic. This involves optimizing the website and content to rank higher in search engine results, using keywords that the target audience is searching for, and ensuring the site is mobile-friendly and fast-loading.
• Pay-per-click (PPC) advertising, such as Google Ads and LinkedIn Ads, targets specific demographics to drive traffic to landing pages designed to capture leads. This method requires continuous monitoring and optimization, skills that typically reside within the marketing team.
• Email marketing campaigns are developed to nurture leads through the sales funnel. These campaigns are personalized based on the recipient’s behavior, preferences, and engagement history, requiring a sophisticated understanding of marketing automation tools.
• Webinars and online events are hosted to provide value, demonstrate expertise, and capture leads. These events are promoted through various channels to attract a wide audience and require significant planning and execution by the marketing team.
• Participation in networking and industry events involves engaging with attendees, exchanging contact information, and following up with potential leads. Marketing teams often organize the company’s presence at these events, designing promotional materials and arranging speaking engagements.
• Lead magnets, such as free templates, toolkits, trials, or assessments, are offered in exchange for contact information. These resources must be highly relevant and valuable to the target audience, making them an effective tool for capturing new leads.
• Account-based marketing (ABM) focuses on a targeted set of high-value accounts. Personalized marketing campaigns are created for each account, requiring close alignment between marketing and sales to identify and engage potential leads effectively.

These are all good and nice approaches done by non-sales people. But there are two major problems. First: in 2023, 50% of B2B marketers did not meet their 2023 marketing goals (see above). Second (and even worse): These marketing-driven lead generation activities give salespeople all options and arguments to hide behind the lead generation efforts of marketing, blaming them for an empty pipeline instead of taking proactive steps themselves. While marketing plays a crucial role in attracting potential leads, it is unacceptable for salespeople to shirk their responsibility and rely solely on these methods. Effective lead generation is not just a marketing task; sales teams must step up and take ownership, actively seeking out new opportunities rather than passively waiting for leads to be handed to them.

B2B salespeople often avoid proactive lead generation by maintaining a pipeline filled with a significant number of poor-quality leads. This strategy keeps them ostensibly busy and gives the appearance of a full and active sales funnel, allowing them to sidestep the challenging task of actively seeking new, high-potential prospects. However, this approach is ultimately a recipe for failure. Bad leads rarely convert to sales, leading to wasted time and resources. This not only hampers immediate sales performance but also undermines long-term success by preventing the development of a robust pipeline filled with genuinely viable opportunities. Proactive lead generation is essential for sustained growth, and avoiding it by hiding behind a facade of activity is a short-sighted tactic that will eventually erode the salesperson’s effectiveness and credibility.

From Passive to Proactive: Stop Waiting and Start Generating Leads Now

Shifting the focus to active lead generation requires a radical change in mindset for most salespeople in the IT services industry today. Too many sales professionals have grown complacent, relying on marketing to hand them leads and blaming an empty pipeline on everyone but themselves. This passive attitude is no longer acceptable. The days of sitting back and waiting for leads to come to you are over. It’s time for sales teams to take ownership and become fanatical lead generators.

First, every salesperson must start cold-calling potential clients. This approach might seem old-fashioned, but it’s a direct and effective way to reach prospects. Research your target companies, understand their needs, and pick up the phone. Cold calling forces you to engage directly with potential leads, allowing you to tailor your pitch in real time and handle objections on the spot. It’s a skill that needs practice and persistence, but it is fundamental to active lead generation.

“The more you practice cold calling, the less terrifying it becomes. Repetition and persistence turn cold calls into warm opportunities.”, Brian Tracy

Second, leveraging LinkedIn for social selling is crucial. Stop passively scrolling and start actively engaging. Connect with decision-makers, join relevant industry groups, and share insightful content that showcases your expertise. Comment on posts, participate in discussions and send personalized messages to potential leads. LinkedIn is a powerful tool for building professional relationships, and using it effectively can open doors to numerous opportunities.

Third, personalized email outreach is a must. Generic emails won’t cut it. Craft customized messages that address the specific needs and challenges of your prospects. Show them that you understand their business and have a solution to their problems. Follow up consistently and track engagement to refine your approach. Personalized emails demonstrate your commitment and knowledge, making prospects more likely to respond positively.

Fourth, attending networking events and industry conferences should become a priority. These are golden opportunities to meet potential clients face-to-face. Prepare thoroughly, have your pitch ready, and engage with as many people as possible. Collect contact information and follow up promptly after the event. Networking events are not just about being present but actively engaging and building a rapport with attendees.

Fifth, utilize referrals aggressively. Ask your satisfied clients for introductions to other potential leads. A referral from a trusted source is incredibly powerful and can significantly shorten the sales cycle. Don’t be shy about requesting referrals and make it a regular part of your sales process. Offer incentives if necessary to encourage your clients to refer new business your way.

“A pipeline isn’t something you have; it’s something you do. Activity creates outcomes, and consistent prospecting fills the pipeline.”, Anthony Iannarino

The truth is, many salespeople in the IT services industry need a wake-up call. It’s not enough to nurture and convert leads handed to you by marketing. To thrive in today’s competitive environment, you must take proactive steps to generate your own leads. Cold calling, social selling on LinkedIn, personalized email outreach, networking, and leveraging referrals are examples of strategies that can and should be employed immediately.

The responsibility for lead generation does not rest solely with marketing. Salespeople must embrace these strategies, change their mindset, and take full ownership of their pipeline. The era of passivity is over. It’s time for sales teams to step up and become relentless, fanatical lead generators. Only then will they see a significant and sustainable increase in their sales pipeline and overall success.