The truth about BANT: what you need to know and 3 tips to make it successful
By Marco Perotti, Founder of Accelera
As a sales or marketing professional, you've likely heard of BANT (Budget, Authority, Need, and Timeframe). Often publicised as the holy grail of lead generation, BANT leads are seen as a cornerstone of a structured sales process. But do they really deliver? In our experience, the answer is a bit more complicated than a simple “yes” or “no.”
While they can be a valuable addition to your lead generation strategy, they are not a silver bullet. It's essential to understand the limitations and requirements for effective BANT leads to make informed decisions and maximise your ROI.
BANT Leads Vs. Non-BANT Leads
Initially conceived by IBM in the 1950s as an efficient lead identification system, the BANT sales approach and process has been adopted by several successful companies throughout the years. The acronym stands for Budget, Authority, Needs, and Timeline.
In terms of the overall framework, the considerations it asks salespeople to make are pretty straightforward:
Budget: Does the lead in question have the financial resources to purchase the product or service?
Authority: Does the prospective lead have decision-making authority, or do they have a team or superior they must speak with first?
Needs: Does your product or service fulfil the specific needs or solve the pain points of your leads?
Timing: When will the lead be ready to purchase your products or services?
These four criteria have long been used to assess the viability of a sales opportunity and to help sales teams prioritise their efforts. However, as we'll explore, the effectiveness of BANT can vary significantly depending on various factors.
The Reality Check
Let's face it, the industry knows that only a small percentage of companies - around 5% - are actively looking for a solution at any given time (Source: Forrester). This means that relying solely on BANT leads can be a bit of a gamble, unless you're targeting a large enough set of accounts or market. Even then, there are no guarantees, and you'd be wise to be cautious.
The Truth Behind Generating BANT
Companies that generate BANT leads often have well-trained reps, but not always. And even with the best reps, the pressure to make a certain number of sales calls every day can lead to a focus on ticking boxes rather than really understanding the lead's needs. This can result in false positives that are difficult to quality check, which can be a real headache for your sales team.
To make matters worse, the people being called often don't want to share sensitive information with strangers, regardless of who's calling. They might give inaccurate answers just to get off the phone, making it tough for sales reps to figure out what's really going on. It's a bit like trying to get information out of a not talkative friend - it's just not going to happen.
The Importance of Intent
One thing that can make BANT leads more effective is intent capabilities. When a BANT provider can identify genuine interest and intent, it can significantly improve the quality of leads. However, this is not always the case, and it's essential to carefully evaluate a provider's capabilities before investing. You wouldn't buy a car without taking it for a test drive, would you?
Setting Yourself Up For Success
So, can BANT leads work? Yes, but only if you do things right.
Here are our top 3 tips that can significantly increase your chances of success:
Target a large set of accounts or market: this increases the likelihood of finding that 5% of companies in the market for a solution. It's all about the numbers, really. Targeting a small set of ABM accounts? It can work, but expect low delivery numbers and consider removing job title filtering. If someone can lead you into a company’s project, it shouldn’t matter if that person is outside your usual targeting criteria - as long as that lead is a verified insider of that project.
Choose a BANT provider with intent and capabilities: Make sure they can identify genuine interest and intent to improve lead quality. Don't settle for anything less. Ask questions such as: “How do your callers prioritise the accounts to call? What information do your callers use to gain trust and time to talk to the end user?”
Enable your sales reps: this may seem obvious, but make sure they understand that BANT leads are still cold leads and require careful handling to convert. BANT information should be used to offer something related to the lead’s topics of interest, such as an exclusive or personalised whitepaper or landing page (such as using PathFactory). One thing to absolutely avoid is to push the rep re-qualifying the information provided.
What Can ROI Tell Us?
Our ROI conversion stats measured across hundreds of campaigns reveal that only a small percentage of BANT leads result in ROI greater than spending on regular 1-touch content syndication leads. This is a meaningful reminder that BANT leads are not a magic solution. You need to be realistic about the returns you can expect.
The Bottom Line
BANT leads can be a useful addition to your lead generation strategy, but it's essential to approach them with a critical eye. By understanding the limitations and challenges of BANT, you can set yourself up for success and avoid disappointment. Please remember, BANT leads are not a guarantee of success but rather one tool in your marketing arsenal. Don't put all your eggs in one basket and always keep your expectations with everyone involved in check.
Additional Considerations for BANT Implementation
When implementing the BANT methodology, it's crucial to incorporate it seamlessly into your existing sales strategy. Here are some additional steps to ensure success:
Integrate with your sales funnel: ensure that BANT criteria are integrated into your overall sales funnel. This means aligning your lead generation process and qualification frameworks with BANT principles to streamline the decision process.
Leverage digital tools and social media: utilise digital tools and social media platforms to gather additional information about your leads. This can help in understanding the prospect’s needs and the right time to approach them.
Train your team members: regularly train your sales representatives and marketing teams on the best practices for using BANT. This includes asking the right questions and understanding the economic buyer's decision-making process.
Monitor and adjust your strategy: continuously monitor your BANT strategy's performance and be ready to make adjustments. Analyse conversion rates and identify any areas where the process may be falling short.
Foster a natural conversation: encourage your sales reps to have a natural conversation with prospects. While the BANT questions are structured, the conversation should feel organic to avoid making potential clients feel like they're being interrogated.
BANT and Longer Sales Cycles
For businesses with longer sales cycles, incorporating BANT can help maintain focus and direction. It ensures that your sales efforts are targeting qualified prospects who have an immediate need or a necessary budget. However, be mindful of potential buyer fatigue, especially if they are not yet ready to make a purchasing decision.
Building Relationships & Trust
The BANT qualification process is not just about ticking boxes. It's about building relationships and trust with potential customers. By genuinely understanding and addressing their specific challenges, you position your product or service as the ideal solution.
Conclusion
BANT is a valuable tool in the lead qualification process, but it must be used wisely. By understanding its limitations and incorporating it into a broader sales strategy, you can improve your chances of sales success. Remember, the key to effective BANT is asking the right questions, targeting the right people, and being prepared to adapt your approach based on the prospect’s budget and needs.
If you are unsure and would like an expert assessment of your strategy, Accelera is here to help. Our independent agency has helped numerous clients in the technology sector increase their ROI and marketing efforts with a careful, data-driven approach.
Not only do we not charge fees, but we also offer integrated campaign analysis and lead generation reports both throughout and after their completion. Feel free to contact our team at Accelera here.
By following these best practices and incorporating BANT into your sales process, you can enhance your lead generation strategies and drive higher conversion rates. Good luck, and happy selling!