5 Steps to an Effective Lead Process

8/8/2019 5 Steps to an Effective Lead Process

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Five Steps to an Effective Lead Process

By: John M. Coe

President, The Sales and Marketing Institute

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Five Steps to an Effective Lead Process

INTRODUCTION

One of the most difficult and misunderstood business processes today is the entire subject of

leads. Starting with the stimulation to generate inquiries all the way through the challenging

hand-offand follow-up by a sales resource, this area sees more wasted money, lost opportunity

and downright mistakes than any other area in business-to-business (B2B) marketing and sales.

Here are a few reasons to consider revamping your lead process:

worse. A good lead process can therefore become a competitive advantage and enable

your company to beat the competition to the sale.

that, when applied to your business situation, will turn the lead process from marginal to result

producing success.

FIVE STEPS TO LEAD SUCCESS

1. INQUIRY GENERATION

2. LEAD QUALIFICATION

but produces a positive feeling for those inquiries that do no move forward in the sales process.


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3. LEAD DEVELOPMENT

to the sales channel is appropriate for both the prospective buyer and the sales person.

4. HAND-OFF & FEEDBACK

properly followed up and reported on by the sales person.

5. CONVERSION

so that you might have some insight on an effective lead process.

I. INQUIRY GENERATION

rates for ads, direct mailings and trade shows have gone down while their cost per inquiry has

continued to increase.

A new approach is required to generate the right inquiries and it rests on two primary pillars.

SEGMENTATION

of segmentation.

lies in the desirability, and ability for us to drive relevant messages to unique slices or


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1. Demographic

of importance in your particular situation. Geography, year started and type of facility are three

additional demographic facts that may help in building a micro-segmentation scheme.

2. Relational Demographic

information that, if known, would create powerful opportunities to segment the target audi-

a wide variety of applications and it would make a major difference in our micro-segmentation

process that the targeted company employs to manufacture its products.

advertising agencies, it might be if the company had an agency of record, used freelancers or

created marketing communications in-house.

segmentation approach.

3. Behavioral

that have engaged in some behavior that tips offtheir interest or situation. Attendance at a

are three that are common.


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or enhancement procedure and while this is not an easy task, it has the potential to be very

much worth the effort.

4. Competitive

information on prospective customers so a good telemarketing research program should do

the trick, as very few public data sources or lists have such information.

-sumer market as psychographics), need based and even econometric models that asses the

health of a geographic area. Some or all of these may be valuable in your situation but are

segmentation criteria listed above for best results.

OFFER

world of direct marketing, the offer is usually the second most important element of a success-

on the preceding segmentation section.


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of interest or value. Offers such as free software trial, technical report, product comparison

response these soft offers should also contain an end date or limited time to the offer, as that

will spur response.

contact from the company. Attendance at an off-site seminar, phone call or even visits from the

offers are combined with limited time and, if appropriate, limited quantities.

the targeted segment an offer of high interest and relevancy can be created that will drive the

inquiries that are truly interested in your product or service.

buyers that are in the early stages of the buying process will be more responsive to soft offers.

As they reach the end of their buying process, hard offers should contain more value and

individuals can self-identify as to where they are in the buying process.

II. LEAD QUALIFICATION

asking this question to individuals, add these parameters for an even richer variety of feedback:


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2. Timing

Be careful on this one as frequently in the early stages of the buying process a person with

less authority may be performing the investigation. As the buying process goes further, the

situations that where the budget question was asked too early in the buying cycle, and the

lose a potential sale.

scoring system should be developed to rank the leads.

How to qualify an inquiry


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III. LEAD DEVELOPMENT

steps before the purchase, then you may want to consider a lead development process.

database to capture the information on the current status of the lead and the multiple contacts

required to develop the lead to the proper stage in the buying process for hand-offto sales.

some to consider:

information given by the individual.

All of these contacts are intended to move the buying process forward to the point where a

sales call is appropriate. By the way, the sales resource might be a telesales group or business

partner/distributor.

A key component of a lead development program is the availability of an individual that the

they still may resist a sales call. Also, a fully descriptive web site is mandatory today, particularly

-

monials are all of interest to site visitors.


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Leads that come back

Simply, the sales group can hand back a lead that for some reason was not ready for a sales

lead development group can handle this potential customer. Otherwise the sales group would

drop the lead to focus on more important or urgent sales opportunities and customers.

IV. HAND-OFF

then the chances that they all will be called upon in a timely fashion are small. Salespeople

question and the adherence to their desires can help obtain commitment to the lead process.

commitment from the sales group as you do on developing a high quality lead system.

V. CONVERSION

they created the sale. Obviously they conveniently ignored the role the sales force played in the

responses and also like to measure results. But it is not at all realistic to take credit for the sale.

celebrated and rewarded accordingly.


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Secondly, while measurements are important all along the way to the sale (e.g. percent

response, cost of inquiry, lead, etc.) it is now critical to tie the sales result back to the entire

judged to be poor. On the other hand if these leads produce a high sales dollar and margin

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that can be a daunting challenge.

SUMMARY:

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5 Steps to an Effective Lead Process

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