How Is Lead Quality Defined?
You may have finally reached a point where the leads are flowing in for your SaaS company. Maybe you’ve invested in LinkedIn ads, paid search marketing, diligent A/B testing, or other common lead campaigns. Perhaps you’ve implemented alternative methods that are leading to a steady stream of leads. Wherever you are with your marketing, you may run into the issue of leads piling up on the front end and not panning out on the back end.
This is the point where you need to be asking yourself how to get quality leads. Our Statwax team has found time and time again that lead quality in SaaS is what takes prospective clients to long-term clients. If the quantity of your leads doesn’t seem to be an issue, but none of the leads are going anywhere, then it’s time to define (or further refine) what attracts quality leads to your company.
Why Is Lead Quality Important?
Lead quality is important because quality leads usually become paying clients. The old adage of “quality over quantity” rings true, especially in the marketing world. Consider a fisherman, for a moment. If a fisherman reels in hundreds of fish, but they’re all small fish with no meat on their bones, the fisherman is most likely going to toss them all back and have nothing for dinner. Next time the fisherman goes out, they might consider better methods and baits for attracting quality fish, like a largemouth bass or sturgeon.
For another example, take a look at our case study of an email analytics and deliverability platform. The volume of leads was there, but they weren’t turning into customers. After thorough data examination and lead quality analysis, Statwax was able to help the company implement beneficial changes. These changes included a 14.75% increase in qualified leads and a 13.19% reduction in poor-quality leads. This meant more paying customers and less energy and money being spent on leads that weren’t going anywhere.
We have witnessed plenty of successful companies reap the benefits of truly understanding their lead quality meaning. But how exactly does a company find quality leads? It’s all about evaluating leads and knowing which leads to focus on for your business. Let’s discuss how to identify leads and determine quality.
How Do You Determine Lead Quality?
Determining lead quality is about defining what makes a quality lead and setting procedures for sifting those leads out from the pool of possible customers. For a familiar example, you may have begun a sales relationship with a certain person at a particular business, not realizing they have no decision-making authority. Maybe you had multiple calls and emails with that person, and when you found out they ultimately couldn’t pull the trigger on the deal, you felt frustrated at the time wasted on what ended up not being a quality lead.
Fortunately, there are methods for identifying early-on who is and isn’t a quality lead, saving time and money to dedicate to the business in another way. Rating your leads on a high to low quality scale is the perfect place to start.
High vs. Low Quality Leads
After examining multiple treasure troves of company marketing data, we have found these are some of the factors that do not make a quality lead:
- No authority or buying power
- Lack of motivation to invest in the offered services or products
- Not enough funds to spare in their budget
- Insufficient understanding of how a service/product will improve their company
- Poor communication and responsiveness
Conversely, what doesn’t make a quality lead will help you define what makes a quality lead for your company. A good quality lead will have decision-making authority, the money to close deals, responsive communication habits, among other characteristics specific to what that company offers.
To identify whether or not a lead is high or low quality, you have to be asking the right questions, continuing communication, and finding prospects in the right places. All of these methods will stem directly from your company’s particular definition of lead quality. With lead quality defined, you can truly begin utilizing your marketing data to its full potential and focus on prospects that easily become clients.
How to Improve Lead Quality with Statwax
Beyond defining lead quality, businesses should focus on the right metrics and data to narrow their audience down to quality leads. We realize there is a lot of money and energy lost on dead-end leads, and we seek to help businesses everywhere save in those areas and promote growth in others.
We are all about creating a transparent lens for companies to see and meet the needs of their audience through digital advertising, SEO, and data analytics. Once that understanding is established, our team guides companies through learning from their constantly evolving data and altering their methods to meet changing needs.
Whether you are eager to learn and grow through your data, or you are still curious to learn more before starting this journey, please don’t hesitate to contact us. We look forward to showing you the possible and profitable benefits of a partnership with Statwax.
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