In an era of digital communications and technology, some of the business rules become quite different. In the past, it was very hard to reach for customers since mass media were inaccessible and too expensive. Because of that, every new lead regardless of its quality was very valuable. Nowadays services and customers become more and more connected and, even with smaller budgets, lead quantity is almost guaranteed.
But, do you need all those leads? Do you have time to get them and then to deal with them? Do you have the capacity to service all interested leads in a timely manner? If not, do you really expect they will wait for you or you think they will go somewhere else? And if they wait, what will be their overall experience about your company?
And not just that. Even if you get some new resources for that bunch of leads, what you really have from those leads? The better question is: do you get money from them? Probably not from the most, from those unqualified.
This is why lead quality is crucial. Only qualified leads will make you happy, you will make them happy, and based on that experience you can go for more. Don’t chase numbers, chase better closing ratios!
How to qualify leads in order to get better closing ratio?
By improving the quality of lead generation process you will improve the quality of leads. In another word, it is important to understand that quality of your lead depends more from you than it depends from the lead itself.
Key characteristics of high-quality leads are customers awareness about the process, pricing range, minimum quality, as well as their basic knowledge about what, when and how it have to be done. Some of this information should certainly be a part of your marketing content that is provided to your leads. Also, additional information should be filtered through different sales channels (salespeople, call center, road shows, contact forms on your, or your partner’s website).
The smartest approach is to design your marketing content and promotional activities in a way that it generates good prospects to your sales.
Now we are talking about closing ratios improvement. Let’s continue!
Difference between unqualified and qualified leads
Most of the unqualified leads have not been cherished enough to close their sales cycle. They are often unsure of what your company offers. One of the most important issues is that your product or service is out of their price range.
Whatever, it is possible to convert unqualified leads into customers but the churn rate is sky high.
Every qualified lead has already completed or still is in the process of completing your campaign cycle. They are in control of their own buying cycle: completing self-education research, brainstorming and listing their exact needs for a solution, clearly defining budget to work with and researching solutions. Of course, churn rates become low because they closed on their own terms.
Decision time: under or over qualified leads?
What is happening with your business if you under-qualify leads?
You are losing time. Your time and a time of both potential customers and other leads. You will not be able to contact all your leads at the same time. Also, you won’t have tools to differentiate leads by quality once when you already launched the campaign. The campaign is not targeting the right people, without well-set expectations anywhere where you are providing your offer and contact information.
Losing time equals losing money. Sometimes, even processing all your leads means losing money due to negative ROI. Sometimes, this negative impact will not show itself immediately but later in the sales process, since more leads mean more work, more cancellations, and even more complaints (usually unreasonable ones).
Please note that Centah pricing model is also based on a number of leads in the system, but we still highly recommend our clients to target higher quality leads in order to be successful in their business. Just as we understand that too many leads will bring us higher revenue for a short period of time, we are asking our customers to focus on quality since the lead quality is the only guarantee for future continuous success.
Service quality drops with pointless meetings. Don’t bother your sales with contacts they won’t be able to turn into customers. Maybe they will, but with so large amount of effort that the ROI could be close to zero. Even the first month of generating as many leads as possible will choke your sales ability to finish the jobs.
Your brand is losing. Some of the unprepared leads may be low-quality leads, but they are still potential buyers. Maybe they have never thought about how much something can cost. Few months or a year later they find out more about the topic. Will they contact you again if they were contacted by you (directly or indirectly) and then they had to wait for days and weeks for a phone call? No. They will try with someone else, this time with a prepared budget. So, in this case, you promoted the offer, you prepared the lead for a sale, and then, at the end, you have sent him/her to your competition!
What is happening with your business if you over qualified leads?
Of course, there can be a different problem of collecting only overqualified leads. You don’t want to do this as well. They are basically buyers. Leads are potential buyers and some level of risk is necessary to grow in business. Please take this into consideration when organizing campaigns and lead quality targets.
“So what should I do in order to generate better leads?”, you can still ask.
With properly qualified leads, you will be able to have a more efficient sale, better conversion rate, less cancellations, and, at the end, higher ROI and revenue.
Don’t stop here! Read more about lead qualifications economics and tips.
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