Qualifying leads
“All animals are created equal,” explained a character in George Orwell’s
classic novel Animal Farm. “But some are more equal than others.” As it turns
out, so it is with sales prospects, as well.
And yet, so many salespeople act as if all prospects deserve their undying
attention. “Prospects are people too!” some seem to proclaim. Fine. Be nice to
everyone. But do yourself a favor and take some advice from me: if you want to
succeed in sales, never let a prospect interfere with your commission plan, just
because they’re nice to talk to.
Enough said.
In an August 2002 edition of The Sales Generator, we discussed “Closed-Loop
Lead Management.” In that edition, we told you that the third step in a lead
management system is to “Qualify and Prioritize the Lead.” In this edition,
we’ll discuss the fundamentals of how to do that.
The most basic qualification systems consider three criteria: money,
authority, and the desire to buy. Clearly, without those three things, there
isn’t much hope that a sale will be made. However, with experience gathered
through deal flow, qualification can become much more sophisticated and
accurate. Factors such as the following may also be considered:
Purchase time frame Specific product of interest Geographic location of the
prospect Existing customer or not Number of previous inquiries Vertical market
the prospect is in Vertical market(s) the prospect’s organization sells to
Company size
Which of these things are indicators of sales success for your business? What
other factors are common among your customers or clients? How much weight does
each factor carry, in determining whether or not a prospect will buy? These are
the necessary considerations when developing a lead qualification system.
Considering the number of diverse industries and market segments with whom I
work, it’s not possible to recommend a system that will apply consistently for
everyone. However, the following grading schema is fairly generic, and is a good
start for most businesses. How can you adapt it to work for yours?
Grade description
- A - Prospects are ready to buy and are assigned to Sales as a
qualified opportunity
- B - Prospects have demonstrated a need and are nearing a purchase
decision. Emphasize the competitive advantage of your product or services,
and the expected return on investment.
- C - Prospects have identified a potential need and are beginning
to gather information. Education is necessary to promote informed decisions.
- U (unaware) - Prospects have a potential need buy may not realize
it. Awareness campaigns are needed to initiate an information exchange.
- D (disqualified) - Prospects express no interest or do not meet
predetermined criteria. Information is recycled to a database for potential
future use.
Back to free resources list » |
