Lead Generation Tips | How many Qualified Leads do to you want?
It's the perpetual tug-of-war in lead generation: quality versus quantity of leads. Being in the sales business for a long time and running a company, I've had to help referee this battle for a number of years and I don't foresee a winner emerging anytime soon - but there really doesn't need to be one.
Businesses want sales-ready leads of the highest quality, and they want a lot of them.
Makes sense, but there is a significant amount of work that goes into lead generation and establishing a quality lead. Often times that comes at the expense of quantity. We must weed out the bad to get to the good which is both art and science. Our goal is to provide the best quality possible for our clients while understanding that the lever must be carefully monitored to ensure quality.
You've got to run the numbers.
The good news as we all know is that lead generation is a numbers game. If your business receives 50 ‘”qualified” leads in a month that cost $50 each, you will have spent $2,500 for a pool of 50 potential buyers for your product or service that are qualified. Not kick the tires type of people. To get to the 50 is another discussion.
But keep in mind - all of those buyers are different. They have different needs, different schedules, different interpretations of sales techniques, and some may just flat out change their mind about what they wanted in the first place. That comes with the territory when trying to extract sales leads from multiple locations and verticals.
Rather than measure your ROI on a lead by lead basis, remember to focus on the overall margin of your lead program. If you close just 4 of the 50 leads you received at an average sale price of $4,000 (dependent on product of course), you'd wind up with a 15.6% gross profit margin not bad, right?
Balance in all things, too often, it's easy to get caught up in the minutiae of individual leads rather than focusing on your lead program as a whole. Let's not forget that even pristine leads can decide to go in another direction, so there should be an intrinsic balance between your expectations of quality and your need for enough opportunities to close sales.
In the end, your sales team shouldn't have to pick a side here, but instead understand that quality and quantity can often be opposite forces. The key is to find the equilibrium between the two to maximize the ROI of your lead generation endeavors.
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