Sales teams need to catch leads which can be converted in the quickest time with the least amount of effort. Prospects which are highly profitable, and likely to convert what sales reps call high-quality leads. So how can you reduce the amount of calls and maximize the profit with your leads? How can you sieve through the open leads to find the best? With 56% of sales managers prioritizing high quality leads, its crucial to save time, save energy and maximize your profit.
What makes a high quality lead?
The quality of a lead is determined by three factors: the profit margin of the lead, the likelihood of conversion and the effort needed to made the sale. Sales experts prepared a formula to identify the best lead. The likelihood to close and the expected profit should be higher than the effort required to close the deal.
How likely is your prospect to close the deal?
The shorter the sales cycle, the more likely the lead is to convert. How can you identify a buyer that is ready to sign?
1. Check the job title
Talk to the head of the business, not the body. Speak directly with the decision maker and not with the middle man or other personnel to increase the likelihood of conversion.
2. Meet their need
The two best ways to get the client to close is to solve their problem or give them what they need. To maximize the chance of closure, the buyer must need your product now, not down the line.
3. Matching customer profile
Ensure the lead’s company aligns with what service your business provides. The client needs to reflect your product’s benefits too to enhance the likelihood of a deal.
4. Interest in sales
Mark their response to your product. Read how genuinely interested they are. If your prospect seems keen and engage during the sales process, this greatly increases the chances of closing.
Weigh up these criteria and compare your leads according to how easily they can be closed. Use CRM to map out where your leads are in your sales cycle. These leads are the ones to focus on and will save you time and energy chasing clients and negotiating deals.
How much profit will this lead give you?
Compare the value of the prospect by identifying what your profit will be. The client may bring a lot of profit to their own business, but how much of that will be left for you after their high pricing demands, customer service and management costs?
The big fish could actually be a red herring, so don’t miss out on smaller enterprises which could offer more profit to you as they do not generally set their demands too high.
Here is how to compare your leads in order of profitability:
1. Where is your lead?
Take into account the lead source, i.e., where your prospective consumers find you. The source can be social media, networking events or by referral.
2. What does your lead need?
Look at what made them choose you rather than your competitors. Why did they choose your product? What brought the customer to buy?
3. How much priming does your lead need?
Consider the communication or strategies involved in bringing them to sign on the dotted line. Did they contact you first or did you have to communicate with them? Researching this shows you steps in the sales cycle they would need to take to make the purchase.
With these in mind, you can find your most profitable lead with the least effort. You can also tailor your marketing campaign to suit the most likely lead to close, i.e. if the best prospects respond to social media strategies, invest heavily in this area to capitalise on that market. By the same token, if the least likely cases are to be found at networking events, this avenue can be omitted from your campaign as you save time and effort chasing poor quality leads.
How much effort do you need to put in to close this lead?
In our final step, we need to reduce the amount of calls and chasing required to close the deal. Compare your leads according to how much time and energy needs to go into converting. All the communication and litigation can be costly on your valuable time and money. So prioritize the leads which keep your output to a minimum. CRM can highlight the cases with the shortest time required from opening to closing deals.
How do we spot the lead with the least effort required?
1. What motivates the lead?
Find out what influences the buyer to close. Research and discover what your lead is drawn to and then make sure that you are fulfilling that need.
2. Discard the poor quality leads
A lot of energy can be saved by omitting your low quality leads. This will also supply you with more time for your more lucrative prospects.
3. Use the sales tools available
Keep an eye on the quantitative and qualitative data to see what leads are worthwhile and which are not. CRM and sales analytics software are some of the useful software tools to help you identify and calculate the quality of your leads.
To reduce your open leads to just the high quality leads, you can save a lot of time and energy by comparing the leads before you even pick up the phone. This lead generation will also ensure that your leads are the most profitable and the quickest to close.