Lead Generation: Quality or Quantity?
Lead generation is an important benchmark marketing companies use to monitor success or failure in their marketing efforts. Lead quantity can increase phone call and email numbers, but lead quality is what really matters to get consumers locked into what your company is offering. Understanding lead quality early enough in the marketing funnel process can be a pivotal moment to securing those leads.
What Exactly is Lead Generation?
According to WorkCast, lead generation is a strategy used by sales and marketing teams to develop and maintain a healthy sales pipeline through audience building. Marketing and sales teams use a mix of inbound marketing tactics, paid advertising, email marketing, and other activities to introduce a steady stream of leads into their pipelines. Once that lead is in your system, it becomes cared for in the sense that it enters the marketing cycle. Once in this cycle, the main goal is to turn this lead into a customer.
How Would You Define a High-Quality Lead?
High quality leads typically have a strong product or service fit, which increases their customer lifetime value and retention, according to WorkCast. Lead quality starts from the moment someone hits your website. In other words, the quality of your leads is dependent on the quality of your traffic. To improve the quality of your leads, you need to measure and improve the quality of your website traffic.
Why Should You Want High Quality Leads?
Marketing Insider Group says when you focus on lead quality the chances of converting a lead into an actual sale significantly increase, and the resources spent on acquiring that lead actually pay off when they become customers. Lead quality and quantity go hand in hand and it’s important to prioritize both. Because your company is unique, not every marketing approach fits into the scope of your goals.
McCarthy and King states, “Advertising and marketing campaigns are often declared winners or losers based on the number of leads they generate. But that’s a very simplistic measurement. You also need to take into account lead quality. Instead of looking at your response rates or cost-per-lead, establish some benchmarks for a qualified lead (how much are you willing to spend per booked or sold job), and then start looking at your qualified response rates or cost per-qualified-lead.”
At Custom Marketing Solutions, we prioritize lead generation and base your marketing plan on the needs/goals of your company. By creating a healthy balance between lead quantity and quality, we can be proactive in current processes that work specifically for you.