High-quality data has become an inseparable part of many efficient business operations. And when it comes to lead generation, the importance of data is especially great. Leads are recognized and converted precisely by utilizing various types of data. Among the many important types of information for lead generation, one that could and should be utilized more is alternative data. This is the information of how and by whom the company has been funded at its various stages of development. Utilizing this data can significantly improve lead generation.
Founding and funds
Anyone who has ever tried to start a company from scratch will tell you that it is far from easy. Even if you have a great business idea, obstacles are sure to promptly present themselves.
And as with many things in life, money is among the first issues that need to be solved before moving forward. Thus, most people looking to found their first company will also immediately have to look at how to fund it.
Initially, a startup may be funded by friends and relatives of the founders or an outside angel investor may be attracted from the offset. Later there will most likely be several rounds or series of funding when more investors will join to propel the company's growth. As the risk is higher at the first stages, it should be easier to attract investors later - when the business has proven capable of becoming successful.
Alternative data is the type of financial data that informs on these various sources of funding that the business received at different stages of development. It includes information on who, when, and how contributed to the funds of the company and what they are due for the contribution.
The benefits of alternative data for lead generation
Different types of data are used for various operations by businesses to improve their efficiency and profitability. Information on how a particular company is funded is among those kinds of data that can be used for many purposes.
Let us look at how it can be beneficial to one of the most important operations for many businesses - lead generation. Customers and potential customers are what keeps businesses alive and growing, therefore it is wise to utilize any available means to get high-quality leads.
Firstly, alternative data will help to evaluate and categorize the companies themselves as leads. If we are selling to other businesses, we research the market and try to gain as much information on other companies as possible. When we collect data to use for lead generation, funding data should not be neglected as it may reveal a lot about whether a certain company is a good prospect for us.
From the alternative data, we will be able to determine the stance and future prospects of the company. The information on what individuals or institutions have invested in the company will tell us a lot about its reliability. Furthermore, the analysis of the history of funding will help us see whether the company has grown as expected or not.
This information will allow us to see how the company measures against other firms as lead for us. This will improve lead scoring which will have a big positive impact on our conversion rates.
Another way to use alternative data as a source for leads is looking at the investors themselves. The individuals or companies who have invested in certain startups are to be considered as potential leads as they almost surely have the buying capacities. By looking at the kinds of startups that they chose to invest in we can better determine whether they are likely to be interested in our product or service.
Thus, alternative data immediately generates leads and provides the basis on which they could be evaluated. Combined with other types of data, firmographic information is sure to assist in improving the process of lead generation and deliver high-quality prospects.
Behavior behind the data
Lead generation, as well as most of marketing tasks, is in many ways related to understanding human behavior. First of all, one has to be able to read the data and see the behavior behind it. After analysis, the numbers in the datasets will tell something about the choices of certain people.
This can be utilized very beneficially for lead generation when we have alternative data. The history of funding and who were the leading investors at what point will tell a lot about the way these investors make decisions. Naturally, this is helpful when trying to figure out which of them are likely to make the decision to become your customer.
Additionally, this data can later be used for figuring out the best approach of the salespeople to the particular leads, thus making their job easier and more likely to pay off.
