• by Ray Schultz , Columnist, May 9, 2025

Most B2B brands use email as a lead generation device. But there is one little problem:: 33% are struggling with declining engagement metrics, including declining email open rates and form fills, according to the State of B2B Pipeline Growth, a study from Pipeline360. 

AI might help them, but this is not yet clear. 

Of course, metrics are not their only challenge. They also worry about: 

• Economic uncertainty—45%
• Unrealistic expectations—36% 
• Engagement challenges—33% 
• Resource challenges—32%
• Content and channel issues—32% 
• Organization alignment issues—29% 
• Technology issues—25%
• Data concerns—25% 

Another challenge is that sales cycles have gotten longer for 74% of the respondents.  

Then there is funnel friction. These are the most problematic stages:

• Closing deals—38% 
• Retaining customers—38%
• Qualifying leads—36%
• Nurturing leads—34% 
• Generating leads—28%

Meanwhile, 31% report flat budgets and 32% budget decreases. In contrast, 38% see increases. Headcounts are growing at 40% of B2B firms, holding steadty at 45% and shrinking at 16%. 

Budgets aside, email marketing retains its usage dominance as a lead generation channel. The respondents use:

• Email marketing—66%
• Paid social—58%
• Paid search—50% 
• SEO—47% 
• Email or webinars—45% 
• Direct mail or offline campaigns—35%
• Referrals or partner programs—27%

(Email usage is 3% higher than it was in July 2024). 

The respondents are also turning toward AI, with email ranking high as an imperative. They see these AI or machine-learning applications as most valuable: 

• Generative AI for content creation—36% 
• AI for email marketing optimization—36% 
• ML for customer insights—30% 
• AI for lead scoring—29%
• Generative AI for ad copy—28% 
• AI for predictive analytics—28%
• AI-driven chatbots—27% 
• ML for sales forecasting—19%
• ML for pricing optimization—14% 
• None of the above—5% 

Pipeline360 surveyed 534 B2B marketing professionals in the U.S., UK, Europe and Asia in February 2025.