Lead Qualification

A study by Harvard Business Review says that companies responding to leads within an hour are seven times more likely to qualify for the lead. So, you might have an idea of how important it is for companies to automate lead qualification.

Conversion of potential leads into customers and the creation of a loyal customer base is the end goal of any company. But the truth is, that not all the leads convert into actual buyers.

Lead qualification is a strategic process that improves the overall efficiency and success of a business by focusing efforts on the most promising opportunities.

With lead qualification, there is resource optimization, time savings, improved conversion rates, and better customer relationships.
So, let’s dive deeper into this for an in-depth understanding.

Understanding Lead Qualification

Lead Qualification means a process of evaluating leads (prospects) to find out their likelihood of making the purchase. It is a tool used for choosing those prospects on which the company should focus.

Simply put, lead qualification is a filtration process of sieving the leads to find the optimum ones with maximum ROI. It helps in finding out which leads are worth pursuing and which ones should be dropped. In short, it involves the filtration of actual buyers from casual shoppers.

In this filtration process, sales representatives use a framework and lead-scoring system. The system involves posing questions to prospects as part of the research and assigning a score based on their responses.

Once completed, the aggregate score is utilized to determine whether the prospect qualifies as a sales-qualified lead.
This approach enables representatives to make informed, data-driven decisions regarding which prospects to prioritize and follow up with.

Process of Lead Qualification

  • Step 1: Create a lead magnet
  • Step 2: Set up an automated lead capture form
  • Step 3: Ask qualifying questions
  • Step 4: Flag your high-quality unicorn leads
  • Step 5: Deliver qualified leads to your sales team

Why is Automation of Lead Qualification Important?

In a sales funnel, there is a wide range of prospects. It is quite obvious that you can’t convert them all. Therefore, you need to realize where to put most of your lead nurturing efforts to get the desired results.

As per Forrester Research, companies that are proficient at lead nurturing generate 50% more sales-ready leads at a 33% lower cost. This means if you struggle with qualifying leads, then how will you excel in nurturing it? Think!

Wherever there is repetition of tasks, automation is necessary. This not only saves time and effort but also increases efficiency and reduces costs. Automation of workflow streamlines the process, reduces costs and delivers more sales leads at the same time.

It accelerates the lead qualification process, allowing sales teams to focus on high-priority tasks.
Automated systems instantly respond to leads, providing timely information and maintaining engagement.

It applies consistent criteria for evaluating leads, reducing the likelihood of human error. This also ensures uniformity in the qualification process.

Further, as the volume of leads increases, automation ensures that the qualification process remains scalable without overwhelming human resources.

How to Automate Lead Qualification?

Studies have proven that about 40% of marketing and sales professionals accept that a lack of effective strategy is the biggest obstacle to lead generation success.

Automation helps overcome this obstacle by developing an integrated process for lead generation. The process starts by converting website visitors into leads and nurturing them as they proceed till they buy the product. The three ways to automate lead qualification are:

Lead Scoring

The two common ways for automating lead qualification are lead scoring and grading. These help in determining whether a lead is worthy of passing from the marketing team to the sales team.

Lead scoring is a numerical system wherein points are assigned to the leads depending on various attributes, including demographics and firmographics like industry, company size, job title, and location. It lets you prioritize leads based on their level of engagement and readiness to buy.

The most effective way for lead scoring is to use Customer Relationship Management Software, which helps you attract, track and manage leads from different sources.

On the other hand, lead grading, as the name suggests, is a system in which grades are assigned to leads based on their behavioural and psychographic attributes. These attributes can be website visits, email clicks, content downloads, pain points, interests, etc.

Smart Forms

As the name conveys, smart forms can be used on web pages. These forms change the fields displayed depending on their previous submission. Suppose your company deals in cosmetic products; you can add a field on your form that asks if they are men or women.
Once the customer makes their selection, your dynamic smart form can serve accordingly.

Chatbots

When the prospective customers start a conversation with the chatbot, it collects the required information, which qualifies the lead.

Final Words

Lead qualification is the process of assessing and categorizing potential customers or leads to determine their likelihood of becoming actual customers. It involves evaluating the quality and fit of leads based on specific criteria, helping sales teams prioritize their efforts and focus on prospects with the highest probability of conversion.

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