Traditionally, all the sales and marketing strategies would mainly focus on lead quantity by casting a wide net to capture maximum leads. So, stress was paid to get a higher volume of contacts during a lead generation campaign and less importance was given to lead quality. Higher the lead counts, higher are the chances of sale was the ideology.
Eventually, this concept is changing drastically. Now stress was placed on lead quality over lead quantity as the main priority. Researchers concluded that B2B marketers give a clear preference for generating high-quality leads over generating a high volume of leads. Furthermore, it was deduced that improving the quality of leads has become the most important objective of a lead generation campaign.
Lead quality refers to the prospective buyers who have a clear intent to buy along with the means to do so. These can be individuals or organizations that have shown interest in their activities, behavior, and interactions with your brand. It can be measured using a method called lead scoring. This method ranks the prospective customers on a scale that represents each lead’s perceived value to the organization. The score determines which leads should be prioritized and what type of engagement should be followed for each lead.
User data is used to find quality leads. So, data is collected based on the visitor’s behavior on different online platforms or websites. These activities include:
- Types of pages they visit
- Time spent on each page
- How did they find this page?
The analysis made on these questions provides a clearer idea about customers’ profile. And a good understanding of the prospective customer’s profile helps in optimizing and personalizing the sales/marketing campaign.
- Lead Quality and ROI
Return on Investment (ROI) is an important measure to calculate the success of any lead generation campaign. This implies that the higher the ROI, the better that investment is considered to be. Businesses make sure that the campaigns are efficient enough to get the best ROI. When the focus is placed on improving the quality of the lead, the chances of converting a lead into an actual sale significantly increase. Also, it improves a customer’s lifetime value by nurturing relationships and enhancing loyalty. Ultimately, this improves the ROI over time.
- Lead Quantity and ROI
Capturing huge amounts of leads is like playing any numbers game. The success is judged by the number of leads generated. Usually, most of the sales and marketing efforts are focussed on the volume of leads. In many situations, many companies prioritize on lead quantity over lead quality. This usually happens in the initial stages when a brand has very less brand awareness and finds it difficult to gather target audience data. This strategy is comparatively less expensive and since the brand doesn’t directly know their target audience, so they target a wider group.
- How are both important?
The value of one can’t be undermined by others. Sales teams usually focus more on the quality of leads to get a higher conversion rate while marketing departments look at the number of leads generated to measure the success of a lead generation campaign. However, it must be realized that one is baseless without the other. Both the metrics are equally critical to success as it should be noted that one cannot function without the other. Attracting more leads will always be the first requisite to increase the number of sales conversions, and getting good lead quality becomes a necessity once the business operations achieve a certain level of maturity. This is an effective tactic to reduce overhead costs and improve ROI, especially in the long term.
- Achieve a Healthy Balance
The best results can be achieved if an equal priority is given to lead quality and lead quantity. The best strategy involves testing, implementing, monitoring and then analyzing consistently. The issue isn’t where to focus? But the solution is attracting and acquiring the right kind of leads specifically for your company. Both the quality and quantity together will drive overall success when it comes to lead generation.
Sales and marketing teams have to come together and form a unified front to achieve the right balance between lead quantity and quality. Finding, acquiring, attracting and then nurturing higher quality leads ultimately result in better chances of conversion. So, focus on the quality as it also improves a customer’s lifetime value and brings loyalty to customers.
Each business has an optimal point where both metrics are balanced but aren’t that easy to be calculated. Find a balance between the two to get the best from your operations to maximize the efficiency and ROI from your lead generation efforts.
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