You’re doing some level of marketing but it’s not generating the results you hoped for. Or maybe you’ve never done any marketing (not even a proper website!) but you’re sure it’s not going to work anyway. Or maybe you simply don’t trust those sneaky, dishonest, lazy marketing agencies that have already disappointed you before. In any of these cases, you’re not seeing the bigger picture.
The reality is not that marketing doesn’t work, but that you’ve done marketing that is not results-driven. But maybe you, too, had your fair share of blame in it. All this time, you’ve been counting the quantity of your leads over the quality, losing the game in the long-run.
10 qualified leads are better than 100 random leads.
The 2 most important criteria for leads you should be looking for are:
Closing potential - Determine how easy will the lead convert into a customer.
Revenue potential - Determine the revenue that will be generated from the lead over a lifetime or the time period of your contract.
If the numbers don’t look like a promising sunny morning and a cup of homemade lemonade, the lead is not your customer, learn to let them go. Even if you do a great deal of lead nurturing, they will not become a customer. Well, even if they do, the profit won’t justify the resources you spent on nurturing them. I know it's easier said than done, so here is how you can calculate the quality of your leads starting now.
What does quality mean?
Quality is not a fixed concept—it denotes different features for different companies. The leads of one of our IT clients have 0 value for our other client who sells outdoor kitchens. So, how do you build the quality criteria for your own leads? Look at these things:
Even local and national businesses generate international leads. Globalization? Doesn’t matter. We shouldn't even talk about these leads if you’re not servicing their location. Should you keep them in the list? Not really. If your lead list is comprised of a variety of leads, qualified and unqualified, you can’t execute highly targeted and personalized email campaigns. The data is simply not right. Keep your lists clean so that your stats are credible to build campaigns on. If you think there might be potential in international leads, keep them in a separate list.
This point refers to B2B companies. For instance, we are a B2B company, we provide inbound marketing and web design services to other companies in Greenville area, SC and beyond. A lot of companies like us don’t have a focus on specific industries. It’s not my role to judge or analyze their efficiency, but based on my own experience, you are capable of doing more things with leads that operate in industries you already have experience in than those that belong to an unknown market. So, do I think leads that come from our target industry will more likely choose us over another agency who has no experience or knowledge of their market? Yes, I absolutely do. Not because the example is on our own agency, but because I would do just that if I was the lead.
One of the times you’ll wish you had buyer persona is when categorizing and nurturing your leads. If your lead list exceeds a hundred or two, analyzing them one by one might be a waste of time. Instead, group them into buyer personas and those that don’t match any of your personas can quietly await in a separate list in case you expand your focus. But right now, they are not your customers; don’t convince them they are. Examples can include entry-level employees when you’re targeting decision-makers, leads following a different philosophy than what you can offer, leads preferring a different communication and working style than you, and etc.
Income, company size and revenue
Small companies should start small; it’s the smart thing to do, unless you’re willing to take on big risk. Charging a large sum of money from a business that is having a hard time squeezing marketing into their budget is not okay. So, same way, if your leads don’t match the financial criterion, don’t spend their and your own time. If your product is expensive, don’t sell it to people who can’t afford it. With that kind of lead generation strategy, you both lose.
Finally, do your leads really need your service? If they don’t, they will stop working with you at some point. The key to long-term partnerships that bring the most profit, experience, and value is making sure that apart from the above mentioned criteria, the lead does really need your service, and that you really can help them.
Once you make sure the majority of your leads are good enough to start working with, move forward to measuring rates like visit-to-lead, lead-to-sale, and rejection rates. For now, here's a treat for our visitors who are struggling to market a high-end product. Download below.