In sales, a lead is someone who has both the interest and the authority to buy or invest in a product or a service. When a company obtains a lead, they will be given the information necessary to contact that person about making a purchase.
Leads are an essential part of business, but not all leads are created equally.
One of the best types of leads is a qualified lead. When someone obtains a qualified lead, they’ll have more than basic contact information. They’ll also have information about the individual or the company they work for so that they have a better understanding of how to sell products and services to them.
The more information a company has on their leads, the more efficiently they can use them. This is what makes qualified leads so important. When a lead is qualified, the company can evaluate the lead and decide when to pursue it.
For example, they may be able to determine whether they have the money needed to purchase the product, or whether they’re the person who will be able to make final purchasing decisions. Companies can also determine whether the product or service they’re selling will be able to meet their needs, and will know whether or not this lead is time-sensitive.
When companies have access to that kind of information, they have the opportunity to prioritize their leads. They can divert their attention to the leads who are most likely to convert to sales quickly; the qualified leads. If a company has enough qualified leads, they may focus on them entirely.
The details provided by a lead can sometimes be incorrect. In order for a company to truly determine whether a lead is qualified, they may want to do some extra investigation. This could involve an automatic check, or a phone call to verify details. That phone call can also be used an an additional opportunity to sell.
Many marketers have debated over whether or not qualified leads have a significant advantage over basic ones. Obtaining basic leads is typically far easier than obtaining qualified ones. However, the conversion rates for basic leads tends to be low. Additionally, it often takes a great deal of work to convert a basic lead into a sale.
In contrast, the conversion rates of qualified leads is very high. However, because they can be difficult and costly to obtain, the rate earned from these leads needs to be high in order for a company to see a good return on their investment. A qualified lead that doesn’t work out can cost a company valuable time and money.
When it comes to leads, knowledge is power. The additional knowledge provided by qualified leads makes their conversion rate very high, but it comes at a cost.
It’s clear that companies have a lot to consider when pursuing leads. Some companies have prospered by pursuing basic leads instead, while others still see qualified as the golden standard. No one answer is right for every company.