Does the Quality of Leads Matter?
3 Things You Need to Know
In the sales world, it's often said that if you're not following up on leads, you're losing them to other, more determined people. However, you can't follow the age-old, now-somewhat-outdated maxim to Always Be Closing if the quality of leads available to you suffers. Let's face it, sinking hours of your valuable sales time into dead or weak leads puts you miles behind your competitors and leaves you lagging on quotas.
Why is lead quality so important? How can you determine if the leads you have are worth pursuing? What can you do for lead generation if your current pool lacks? Here's what you need to know.
1. Poor Leads Waste Company Resources
We alluded to this in the introduction, but the quality of leads can directly and often negatively affect your company's performance. Chasing down poor quality leads can waste massive amounts of:
- Time: Every hour you spend chasing a bad lead is an hour lost closing on a good one
- Resources: Physical and digital marketing is expensive and bad leads generate wasted marketing budget
- Missed chances: If your leads are inaccurate or incomplete, you're missing the opportunity for another customer
None of these are things that any company can afford to throw down the drain. So, what can you do if you think your leads don't pass muster?
2. Rethink Your Metrics to Track the Quality of Leads
Some companies track the success of their leads by scanning hundreds, if not thousands of metrics. Don't overcomplicate matters. focus on these three metrics to simplify and improve your lead scoring:
- Visitors to leads: How many people who call, visit the website, or go to the storefront actually leave their information?
- Leads to opportunities: How many of these leads, upon qualification, present actual sales chances?
- Conversion time: How long does it take these potential sales to convert to hard sales?
By following these three metrics, you can vastly improve your lead quality and stop wasting time on leads that won't go anywhere.
3. Lead Quality Is Time-Sensitive and Industry Specific
One last thing to note: The quality of leads is highly specific to an industry and quite time-sensitive. For example, a personal injury lawyer following up on a collection of older personal injury marketing leads might find that most of their opportunities still exist even months after the initial accident. Legal proceedings can take months or years to complete, after all.
However, a business that needs new data servers constructed ASAP might no longer need your company's services within a month. If your industry moves fast, leads over a certain age have no business remaining in your queue.
Let's Review the Basics
The quality of leads your business can access has direct impacts on your business's overall performance. Nothing will drive your business into the ground faster than wasting all your time, money, and energy on a pile of bad leads.
If you need further assistance figuring out how to qualify and simplify your lead generation and sales processes, then check out our blog. We update each day with more helpful and informative articles like this one.