Cost of Inefficient B2B Lead Management
Lead management concerned inefficiencies are one of the most costly mistakes a B2B firm could make. The consequences of poor lead management translate into low conversion rates, a negative impact on a firm’s reputation in the marketplace, and most importantly, a loss of revenue.
B2B lead management is also referred to as customer acquisition management and is described as the process of collecting a prospect’s information (i.e., email, name, employment info), and managing/tracking their progress through the sales funnel.
However, the ideal process concerning lead management includes:
- Lead Generation
- Customer Query and Acquisition
- Lead Segmenting, Sorting, Distributing, and Contacting Leads
- Lead Qualifying
- Lead Nurturing
Bad lead management is one of the leading causes of stagnation concerning company growth. When this system is mismanaged, cracks are created, allowing leads to falling through, equating to a waste of precious company resources.
Symptoms of Bad Lead Management
Bad lead management can manifest in many ways, including:
Bad Prioritization of Leads
Converting leads can be a lengthy process. Some prospects know exactly what they want and are ready to perform whatever action it is that you hope for them to perform, and other times, prospects are just curious about the products and services you provide. The moment a lead responds to your firm’s marketing efforts, it’s up to you to decide how they’re classified. They should be categorized based on their likeliness to follow through. When leads aren’t categorized, sales departments are left to contact an array of prospects, whose statuses are uncertain, concerning their interest to make a purchase. This creates a great deal of inefficiency in the sales process because a sales teams gamble with regard to customer acquisition via emails or calls is much higher than it would be if leads were prioritized based on established criteria.
Not Following up on Leads in a Timely Fashion
Timing is everything when it comes to making a sale. The sooner you contact a lead who’s shown interest, the more likely they are to make a purchase. This claim is backed by a Harvard Business Review study that audited 2,241 American businesses. According to the study, you are seven times more likely to convert a lead if they are responded to within an hour. If you allow leads to sit stagnate within your sales funnel for too long, not only do your odds of converting them dwindle, but they are more likely to look elsewhere to fulfill their needs, such as one of your competitors.
Therefore, following up on leads efficiently can have profoundly positive impacts on your business’s bottom line.
Evidence that validates this statement includes information gathered from HubSpot.
- 50% of sales go to firms that make the first contact with prospects.
- A firm’s costs are cut by up to 33% if they are the first to make contact.
- Vendors who respond to web leads within 5 minutes and 30 seconds are around nine times more likely to convert prospects into customers when compared to firms that wait longer to make the first contact.
- 80% of conversions require up to 5 follows ups.
The cost of inefficiencies within your lead generation system can have a profoundly negative impact on your firm’s ability to generate revenue, as your time and money are often wasted losing potential customers.
For B2B firms in need of a strong lead generation strategy that focuses on aggressive growth, consider hiring the lead generating savants at Lead Angel.
We use an array of tools and technologies to figure out the best approach to generating the highest quality leads for your firm. So, to learn how we can help boost your business’s conversion rate, contact Lead Angel today.