You’ve begun to warm up your prospects by scheduling demos and conducting sales meetings. But how do you decide if a lead is worth your time or if nurturing a lead beyond your first meeting is the best course of action? This is when lead qualification enters the picture.
What is the definition of lead qualification?
The process of establishing whether a prospect meets your target customer profile, has a possibility of becoming a customer, and, most crucially, has a chance of being a successful, long-term client is known as lead qualification.
What is the significance of lead qualification?
Assume you’re running a lead generation campaign on Facebook and LinkedIn. Aside from the marketing you run, your website generates a regular stream of organic leads. You end up with a list of roughly 100 people who appear to be interested in what you have to offer.
How will you know which of these people will become long-term clients?
Of course, you could start with the very first lead you generated, but by the time you get to the last one, there’s a good chance you’ll have lost an opportunity to engage with someone who was very eager to utilize your product at the time.
According to research, only 25% of leads qualify as ideal clients for a company, and a shocking 75% of them never convert. According to the same report, approximately 73 percent of leads generated online are not sales-ready, and approximately 50 percent are qualified but unwilling to buy.
Simply, failing to qualify leads will result in failure.
- Time wastage
You’ll waste a lot of time following up with leads who aren’t a good fit for your firm if you don’t qualify them before scheduling sales meetings.
For example, you can find yourself chasing a prospect who doesn’t have the financial means to take advantage of what you’re offering. You’ll never be able to clinch this deal, no matter how many sales sessions you have with this lead.
- Missing out on opportunities
Some of your most promising prospects may require more time and effort to convert. You’ll miss out on opportunities if you waste time following up on every lead you create.
When you take too long to follow up or don’t follow up at all because you were trying to convert a cold lead, market-fit leads are lost. You’ll lose your chance to market to them at the correct time if you don’t know who is worth the effort or who is your high-value prospect.
- Closing transactions that aren’t going to last
If you approach every one of the prospects in your funnel, you could get a few sales. However, it’s likely that you’ll close more short-term sales, leaving more lucrative long-term ones on the table.
When it comes to commissions and sales targets, this is a common occurrence. They then concentrate on closing deals that will only benefit the customer and your firm in the near run. Part of the problem can be remedied by establishing clear qualification criteria so that salespeople don’t waste time on leads who don’t suit your ideal customer profile.
The disadvantages of not devoting time and resources to lead qualification are obvious. Despite this, 46% of firms still find it difficult to succeed.
According to Steven Tulman, unqualified leads account for roughly 67 percent of your missed sales.
So, how can you efficiently qualify your leads so that your sales strategy remains optimized and focused on market expansion?
- Sales lead qualification procedures
While gathering as much data as possible about your lead is the best course of action, there is a procedure to follow to guarantee you have all of the necessary data sets to qualify a lead. The BANT framework was developed by IBM to address this issue.
- Make lead qualification a sales driver
There is no such thing as a one-size-fits-all strategy to lead certification. Every company has unique requirements and a target market that evolves at its own pace.
As a result, your lead qualification process must adapt to shifting market demands as well as your company’s objectives. It will also assist you in maintaining a healthy pipeline, predicting shifting consumer patterns, and developing concrete forecasts that can be utilized to improve sales processes and increase conversions.
Always remember to qualify before selling.
- Determine the prospect’s requirements
Many leads may end up in your lead nurturing system, even if your solution isn’t the best fit for them. It’s possible that if you provide a lot of knowledge on your website content and offers, they’re just learning from you and don’t require your products or services.
You should figure out what the prospect needs and what problems he or she is seeking to solve as part of the lead qualification process. There’s no purpose in sending them to sales if they don’t have a need right now.
- Verify that your solution is a good fit
It’s time to assess which product or service you have to offer as a solution to the problems your prospect is encountering. If your organization sells a variety of products, possibly to cater to clients of various sizes, you’ll want to assign a sales team member to make follow-up calls.
- Learn about the prospect’s financial situation
Not every lead who enters your nurturing program can afford your top-of-the-line solution. When making lead qualification calls, you should inquire about the prospect’s ability or willingness to invest in your solution. This provides a starting point for your sales staff to build bids or proposals. It could also utterly disqualify a prospect if they just do not have the financial means to purchase your goods or services.
- Determine your prospect’s level of influence
Visitors to your website are likely to come from different levels of management and influence.
It’s critical to understand who your prospect is: are they a product end-user, an influencer, or a decision-maker?
In some small businesses, the same person may meet all three descriptions, although this isn’t always the case.
Knowing how quickly the lead needs a solution in place can help your sales team focus their efforts. A prospect seeking a rapid solution will require more urgent attention than one who is currently under contract but considering options for when it ends in six months. We, Aiozium, come in handy in such situations.
Use our inbound marketing and lead nurturing services to not only generate leads, but also to collect the information needed to define and classify marketing-qualified leads before passing them on to sales. That way, you’ll get the most out of both departments’ resources.