Five Things to Consider When Measuring Lead Quality
Lead quality affects how likely your leads convert to customers.
This makes the ability to measure lead quality critical; and by collating and managing leads from different sources and campaigns on the same management platform, you can compare different lead sources directly.
That said, Salesperson Activity and Salesperson Skills also affects your sales. Even with the best leads possible, if they are not collected properly, assigned and delivered to the best person, contacted and then taken through a workflow process – conversion is much less likely.
So what do we consider when quantifying lead quality?
The most obvious, but definitely not the only factor to consider, is lead conversion rate. Looking at just the conversion rate of a campaign can often make you miss key details about a lead source that results in you discarding it unnecessarily. For example, out of all the salespeople working on this source, is there a pocket of team members that are selling successfully? If so, then the skills and activity of the other team members need to be managed. How many leads have been contacted? How many missed deadlines are there? How many appointments to get a deal? A lead management system takes the guesswork out of these numbers.
Have you got the right turnaround time for this particular type of lead source?
When measuring lead quality it is also important to take into consideration that lead turnaround times vary according to the lead source. This is different from whether they are ready to buy but more about if you contact them in time.
Hot, quality leads, where the decision maker with a need and a budget has left their details on your website, become unlikely to convert if you take too long to get back to them. The source was good quality, but your process made them look bad.
Are they really the right type of potential clients?
Useful insights into lead quality are gleaned from the feedback you should be collecting. While the number of sales-ready leads you have can look good on paper and should be increased using propensity to purchase models or lead nurturing processes, the feedback collected during the sales process shows you if you are on the right lead source track.
For example, if evaluating leads according to the BANT sales qualification method invented by IBM, do the leads you are selling to have:
(B) Budget? – Can they afford the product?
(A) Authority? – Are they key to making the decision whether to buy or not? Decisions are often made in consultation with others but where you start the conversation affects outcomes.
(N) Need? – Do they need your product? (Even if they don’t know they do yet)
(T) Timing? – Are they are ready to buy (and as per the above points - also willing and able).
Are the contact details current?
The list may have perfect BANT qualified leads, but if too many of the contact details don’t work then outcomes will be poor. Preferably test a sample of leads upfront or monitor contact rates early so that steps can be taken to rescue the campaign and update details where possible. Maturities and orphan leads (leads where the original salesperson has left) are examples of sources that run the risk of being out of date but can be well worth finding ways to update them.
ROI reducing lead quality?
As ROI needs to be sustainable, clear reporting on your return on investment whether it is in advertising, manpower, bought leads etc. will help identify quality lead sources with good ROI sooner.
Especially when purchasing leads from partners or referrers it is vital to know how many are coming through and how well they perform – with reference to what was paid for them. Your partner/referrer will also want to know that the leads they have provided are being taken care of as it’s their name on the line too.
Value-Ad’s Smart Lead Management System measures the quality of your leads to help you identify quality lead sources, as well as manage salesperson activity and skills to help you optimise your sales.
Interested to know more about our lead management solution? Schedule a quick 15 minute chat with Andrew, and let's find out if Value-Ad can help your business.