Lead Generation is probably one of the most important aspects of any company.
However, the debate of quality lead & quantity lead has been going on for a long time.
Now before going into the topic, let understand the importance of lead generation for any business.
Importance of Lead Generation Strategy
People often assume that paying a smaller price for a larger amount of leads will automatically refer that they will receive a greater value of leads, which is not true always.
Lead generation should have a strategy & the two most important factors that play a part are- your product & target audience.
For example, if you have a brand that sells promotional services for events, weddings & parties, where the price is decent but sign up is free. Now, people may get interested to sign up but that doesn’t mean they will interested in the service.
Figures from Marketing Metrics show that the probability of selling your product or service to a new customer is just 5-20%.
Your target as a brand should be able to promote your brand enough so that customers actually revisit your page & request for service.
Lead Generation actually depends on your lead quality.
No, not quality lead, which is a type of lead generation.
Lead quality is the factor that will drive your lead generation. It usually refers to the type of buyers that your brand attracts. Lead quality can be measured using a method called lead scoring.
The score determines which ones will be prioritized and what type of engagement is appropriate for each lead. User data is an important aspect of finding quality leads.
Lead Generation can be approached in two ways. The Quality Lead Generation & the quantity lead generation.
Which One Is Better?
Honestly, being in the business for quite some time it really depends on what kind of market you want to target & the product you are primarily selling.
There is no right or wrong approach to it, really.
For instance, if you are a software company that sells around $50,000 dollars of business per month, then it is better for you to focus on quality leads as you can get a better ROI using alternative approaches like advertising.
On the other hand, if you are new in the business of e-commerce you might want to focus on quantity leads at a cheaper price to test the waters.
Bigger companies prefer quality leads over quantity. This is because for them brand image is the foremost factor that plays before a tie-up.
A data from HubSpot shows that while 61% of marketers contact all of their leads, only 27% of those will actually be ready for a sales call.
Let’s take an example, you have a software company & you are paying $500 a month to a company that will generate leads. The price is much cheaper & the company has boosted you with more than 50 leads. Your mailbox is blasting with emails. But at the end of the month, you get only 2 leads actual converts. Therefore, you get a mere 4% conversion rate.
Now, for another company, you are paying $1000 a month for lead generation. They provide you with 20 leads at the end of the month & get 10 conversions.
Apparently the amount seems to be very high for the number of leads right? But these leads are qualified, researched ones. Your conversion rate is 50% which is much effective than the other scenario.
Out of these 10 conversions, maybe 5 will become your loyal customers which means a lifetime of effective business.
The Role of Data
Data analysis is like the nervous system of any marketing. This is where marketers get to study the customers’ journey, buying habits, company’s output & future prospects.
The activities & behavior will decide the next strategy for the company. High-quality data collection and analysis makes it easier to take advantage of tools like targeted content that help influence the buyer’s journey to improve the likelihood of conversion.
The availability of CRM tools can help you gather all the customer data right from their journey.
Try to use features like pop-ups, chat boxes, online prompts to make your site more interactive.
A Proper Balance
In an ideal situation, the right balance will serve your needs. The best strategy involves testing, implementing, monitoring, and analyzing on a consistent basis.
Both quality and quantity drive overall success when it comes to lead generation. Marketing and sales must work hand in hand to find the right criteria for quality assessment that are based specifically on your business requirements. Achieving the right balance will grow your business forward.
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