Ed Locher Unveils Reasons Behind the Failure of MQL-Based B2B Growth Strategies

Disrupting the MQL Lie: Insights by Ed Locher

In a recent episode of the podcast Disruption Interruption, hosted by Karla Jo Helms, Ed Locher, the Chief Marketing Officer of PureFacts Financial Solutions, critically examines the long-standing reliance on Marketing Qualified Leads (MQLs) as a growth strategy in the B2B landscape. Locher, who has decades of experience in various sectors including B2B SaaS and financial technology, dives deep into what he refers to as the 'MQL lie,' arguing that the traditional metrics used to gauge marketing effectiveness are both misleading and detrimental.

The Illusion of Accountability in Marketing Automation

For the past 15 years, marketing automation technologies have promised enhanced accountability and measurable outcomes. Yet, the stark reality is that the average tenure for marketing leaders is now a disheartening 18 months. Locher points out that while these technologies were designed to predict growth, many organizations are left scrambling and experiencing revenue declines following a brief, euphoric spike — what he describes as a 'sugar rush.'

This raises significant questions about the efficacy of marketing practices centered around MQL targets. According to Locher, the heavy focus on these leads tends to overlook a large segment of potential customers. MQLs typically represent a mere 5% of the market actively seeking to purchase, leaving out the other 95% who require demand generation efforts.

Rethinking Attribution

Locher emphasizes that the common reliance on attribution models creates a false sense of clarity, one that many marketing teams chase desperately. He stated, "There will never be a cast iron steel rod of attribution that says marketing did X, which led to this person buying something. It just doesn't work that way." This chaotic approach, he argues, has bred a culture of high turnover among marketing professionals, leading to short-lived tenures that contribute to instability.

When there are at least 16 stakeholders involved in the complex B2B buying journey today, relying solely on automated email sequences or marketing-targeted campaigns falls short. Locher insists that personal connections and tailored narratives are essential — highlighting how a CFO may be more concerned about return on investment (ROI) whereas a compliance officer may prioritize adherence to regulations.

Artificial Intelligence as a Tool, Not a Replacement

As conversations continue around the fears of AI replacing human expertise in marketing, Locher makes a compelling argument positioning AI as a tool for enhancement rather than a replacement. "AI raises the quality floor but hasn't elevated the expectations for superior marketing," he remarks. The real opportunity exists in combining the strengths of AI with human empathy and insight — qualities that technology cannot replicate alone.

By automating certain tactical efficiencies, marketers can be freed from the chaotic noise of data and metrics, allowing them to focus on understanding the nuanced psychological triggers of their customers.

Fostering Growth through Insight and Emotion

Locher concludes by highlighting the critical need for marketing leaders and organizations to recognize that broken strategies don't stem from the marketers themselves but are symptomatic of a flawed foundational system. He urges leaders to be aware of their roles in creating environments where creativity, understanding, and genuine narratives can flourish, what he refers to as the 'psychological drivers' of customer engagement.

In this sensitive and evolving landscape of B2B marketing, Ed Locher paves the way for a paradigm shift. He urges businesses to reconsider their growth strategies, challenging them to think beyond traditional MQL metrics and embrace a more holistic approach that includes genuine connection and understanding of diverse stakeholder needs.

For listeners interested in the deep dives of industry disruptors, this episode of Disruption Interruption provides valuable insights into how marketing can evolve amidst the complexities of the modern financial landscape. Those seeking to explore these transformative ideas further can find the podcast available on popular streaming platforms, including Spotify and Apple's App Store.