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Leads

Sales leads are potential buyers of a product or service, generated from various methods such as advertisements, websites or other campaigns.

Alternate names:
Leads

What are Leads?

A lead is a potential customer who has become aware of a product or service but may or may not be ready to make a purchase right away.

Therefore, they require sales support to finish the process of engaging with the company offering the product/service. They can also be called as potential buyers who need to be nurtured and eventually converted. In summary, a lead is an opportunity to make a sale.

The lead may be involved in either one or all of the following-

  • Interacted with your website
  • Shared their contact information
  • Subscribed to your newsletter
  • Downloaded any marketing material

Lead Generation Process

A visitor lands on your website, blog, or social media page

That visitor click your CTA and takes some kind of an action

The visitor is directed to the landing page where they provide their personal information in exchange for an offer (a template, an ebook, a course etc.)

The visitor fills out a form on the landing page and you get a new lead

Leads generation process
Source

Lead Conversion Formula

Lead conversion metrics are important to realize how successful the marketing and sales efforts are in converting the leads into customers.

To find the lead conversion rate, divide the number of leads during a period by the total number of visitors in that same period. For example:

Lead To Customer Conversion Rate = No. of qualified leads that resulted in sales / Total number of qualified leads * 100

For example: Suppose your website generates around 10,000 visitors every month and from those, you have a total of 400 leads. Lead Conversion Rate = 400 leads / 10,000 visitors *100 = 4%

Leads to customer conversion rate formula

Lead Qualification

A sales lead is not a sales prospect because a business would need to qualify the potential new client further by examining their intent and interest.

According to Marketo, a marketing automation software company, 96% of website visitors may not make a purchase when they first arrive at a site.

Lead qualification thus helps determine the likelihood of a lead making an actual purchase.

How do you check for qualifying leads?

Analyze the profile of your lead. Consider: budget, authority level, need for your product/service and timeline. Check if this person is similar in scope to a member of your target market.

Lead Scoring- Give each lead a score based on how much they engage with your marketing assets. A lead scoring system can streamline and reduce sales teams' conversion timelines. As a result, they have a better grasp on the hierarchy of leads, are able to pay attention to the right people, resulting in closing more deals.

Struggling with Low Conversions?

Leads are the cornerstone of any business. They will determine your success. But not all leads are equal, and some lead conversion rates can be as low as 3%. Are you struggling to find an answer to this question? If so, then this article is for you.

Frequently Asked Questions
What is a Lead?
How do you calculate Lead Conversion Rate?
What is a good benchmark for Lead Conversion Rate?
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Leads
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