Every business is aware of the necessity of sales leads. But how many businesses have taken the time to actually define what a sales lead is to their organization? Leads come from many marketing channels but you need the right type of leads to send over to the sales department. The wrong type of leads results in unqualified prospects that only end up wasting time and money for the sales team.
How to Define a Good Sales Lead
Instead of thinking that every lead can convert into sales, you need to qualify the leads first to allocate the right resources to them. This can be done by defining various roles for handling the leads. For example, there should be team members putting in the effort to generate new leads. Another group should qualify these leads and move them over to different processes depending on the quality of the leads.
Some leads will need to be moved over to a lead nurturing process in order to turn them into qualified leads. Other leads may be ready to buy and can be sent directly to the sales team. By breaking down the lead generation process into multiple parts, businesses can define what good sales leads are. This will allow the sales team to do their jobs and close the sale instead of wasting time and resources on low-quality leads or leads that are still not ready to buy.
Why This Whole Process Is Important to Your Business
Creating multiple roles for dealing with leads adds value to the business beyond the sales numbers. First of all, it helps businesses accurately assess the quality of the leads. Many businesses make the mistake of thinking that a lead source is of low quality when they actually haven’t done a good job in separating the leads that need to be nurtured from the leads that are ready to make a purchase. They don’t qualify leads and as a result, many of the leads end up being lost.
Second, it allows businesses to work on improving their lead nurturing process. It’s becoming more important to build a lead nurturing funnel as people want to do business with people they know and trust. Working on this process requires a lot of research and experimentation. You’ll have to create a marketing message that resonates with various segments of your target audience and see what approaches or selling points work best in getting a response from them.
Finally, it can help you figure out your numbers. By creating multiple roles or processes for lead generation, you’ll get more accurate numbers on your average ROI from various lead sources, customer acquisition costs, lifetime customer value. These numbers can help you drive your business forward at a rapid pace. If you know that your lifetime customer value far exceeds your customer acquisition costs, you can really ramp up your marketing campaigns. You’ll also be able to outspend your competition.
Learning About the Opportunity Cost of Generating Leads
Sometimes the challenge isn’t generating leads but choosing with lead sources to work with. If you’re like most businesses, you have limited man power and advertising dollars. You may be able to get access to high-quality leads but those leads may be very costly. Other lead sources may be cheaper but may require a longer process to nurture them into customers. That’s why you have to evaluate the opportunity cost of your lead sources and work with leads that are right for your business.
When the problem lies with the lack of resources being available, the best thing that you can do is to look at your analytics and figure out which lead resources produces the highest ROI. To get accurate results, you’ll need to factor in both the time and resources being spent as well as the advertising dollars. “A B2B marketer can choose an appropriate strategy applicable to an array of platforms such as content marketing, social selling, and partnerships. When a carefully chosen strategy is applied in the right circumstances, it can lead to speedier and efficient lead generation” – Jeff from InfoClutch
In conclusion, it’s imperative that you do the work in defining what your sales leads are and coming up with a campaign to nurture leads that are not ready to buy. This will allow you generate more leads, better connect with your audience and give you more accurate numbers which you can then use to scale your business.