Converting prospective customers into real customers is the ultimate goal of any marketing endeavour. In order to achieve this, prospective customers must first be qualified.
What is Lead Qualification?
‘Lead qualification’ is the process of discovering your target market and determining whether prospective customers fit within this market. Those that do may be possible leads for your business.
How to Qualify Leads
To qualify a lead, information must be gathered regarding prospective customers. This information is analysed to determine if these prospects can be converted into real customers.
Prospective customers that do not fit within your target audience are disqualified. However, it may be worth saving their information as it could be used elsewhere in the future.
Only pursue prospects that fit within your target audience. These prospects are often known as ‘warm’ or ‘hot’ prospects depending on their suitability.
A Calculated Method
Successful business people use detailed methods when qualifying leads. Use best practice models that exist within your business to standardise your sales process. For example:
Define contacts – contacts should be placed into ‘like’ groups such as – suspects, prospects and leads.
What is a Suspect?
A suspect is a lead in name only and can include an individual or company. While the buyer may be unknown, a connection between your products or services and the suspect exists.
What is a Prospect?
A prospect is a suspect that has been involved with your business in some form. They may have visited your website, phoned you or taken some other form of action.
We qualify prospects to ascertain who the decision maker is and the nature of their interest.
What is a Lead?
When a future need is established, prospects become leads. A need is deemed to be ‘hot’ if it is considered immediate.
To determine how immediate a lead is, we assess the lead’s decision-making processes, time frames and business interests.
Customers
When someone purchases a product or service from you, they are considered to be a customer.
How can Customer Relationship Management Help?
Qualify leads is a challenge for even the most successful sales person. Ever suspect, prospect and lead operates within different timelines. As such, a lead qualification method should:
Determine which leads have the ability to purchase.
Have a process for managing income leads effectively and efficiently.
A Customer Relationship Management tool or CRM is a software used to effectively manage leads. CRMs use checklists and other collation tools to effortlessly categorise data and determine leads.
Information is inputted into a centralised system that can be universally accessed and effectively filtered.
The Benefits of Using a CRM
Generally, leads are visible to sales teams, management and marketing specialists. A CRM ensures those who need to view leads have the access they require. This approach promotes solidarity within team environments. A CRM also ensures critical information is properly safeguarded.
Staying competitive in an increasingly global marketplace requires businesses to employ effective sales processes. A CRM is an effective strategy for businesses looking to stay ahead of their competitors.
