How to Stop Wasting Time on Unqualified Sales Leads

Too many B2B companies are squandering valuable time by talking to unqualified sales leads. It sounds hard to believe, but it’s true: according to stats cited by HubSpot, only 56% of B2B sales organizations do not make any effort to verify valid sales leads before passing the leads on to the sales team. As a result, sales reps are being burdened with too many bad sales leads that could have been avoided with a simple process to pre-qualify leads prior to starting the sales follow up process.

 

The cost of unqualified sales leads is bigger than merely wasting time – you’re also missing out on better sales opportunities. By spending time chasing after bad sales leads, you are missing out on the chance to talk to prospects who are much more likely to buy. Better sales results are not always achieved by improving your conversion rates – bigger sales often happen when you improve your upfront processes to better qualify the sales leads that are coming in to your organization in the first place.

 

Asking the Right Questions for Lead Qualification

 

The key to effective lead qualification is to ask the right questions. Don’t ask “yes or no” questions – instead, look for ways to further open up the conversation and draw out more information from the prospects so you can learn more about them. The goal of asking lead qualifying questions is to probe for “pain” points – problems and issues and frustrations that the prospect is having with their current solution. By asking questions in a smart, subtle way, you can uncover previously unstated pain and figure out which leads are really the highest priority. This makes it easier to rank your sales leads – even if it’s just a simple scale of “1, 2, 3” – to sort and follow up with the best short-term sales leads while saving your long-range leads for further nurturing.

 

Here are a few examples of good lead qualifying questions to help open up a dialogue and draw out valuable information from your prospects:

  • “How are you using your current solution?”
  • “What’s your overall situation with your current vendor? How satisfied are you with their performance?”
  • “How does this solution fit into your overall business operations?”
  • “What you are the biggest business challenges that you’re dealing with right now?”
  • “How soon do you think you might be ready to make a decision?”
  • “Who else at your organization needs to be involved with approving budget or giving input on the purchase process?”

 

All of these questions are good ways to create a fuller picture of the prospect’s overall business operations, and see how your solution fits into their organization. You will also get a sense of “pain” issues such as dissatisfaction with a current vendor, inefficiencies or productivity problems caused by the current solution, and the prospect’s overall timeframe for making a decision. Using this information, you can make a well-informed estimate of which sales leads are truly “warm” and which ones require more time, attention, and nurturing before they’re ready to buy.

 

Sales Lead Follow-up: Ask them to Commit

 

Qualifying sales leads is an ongoing process. That first phone call to qualify your leads is important, but you also need to keep evaluating and perhaps re-ranking your sales leads as you acquire more information throughout the sales process.

 

After your initial lead qualifying conversation, if you have a prospect who seems like a good fit and who seems like they’re receptive to buying, you need to start them into your organized, methodical sales process or “sales funnel” of working through a series of steps. At each step of the sales process, you need to clearly ask the prospect to commit to agreeing to the next step of the process.

 

For example, your first step might be “Phone call to thank them for their inquiry, and ask them to agree to have an online demo or web presentation.” Your next step might be, “Ask the prospect to agree to provide information to help create an ROI calculation to show how much money your solution can save them.” Every step gets you closer to making a sale – but you might need to adapt your approach along the way in case a prospect objects or hesitates. Sometimes good leads go stagnant; sometimes buyers get cold feet. Keep adjusting, re-ranking your leads as needed, and keep building relationships and working through your sales process with disciplined focus, regardless of the status of any particular lead.

 

How to Get Rid of Unqualified Leads

 

One of the best ways to stop wasting time on unqualified leads is to stop allowing unqualified leads into your pipeline in the first place. Unfortunately, too many B2B organizations are not doing any meaningful work to qualify their sales leads prior to passing the leads on to the Sales team. For example, according to stats cited by HubSpot, 61% of B2B marketers send all of their leads directly to Sales, but only 27% of those leads are actually qualified.

 

Lots of B2B companies have only a very basic, inadequate process for accepting and handling inbound sales leads. Maybe you have an administrative assistant who answers phones and forwards calls to the Sales people, maybe you have an auto-response email that automatically goes out to all of your inbound inquiries. Either way, if you don’t have some kind of early stage lead qualifying process set up, you are missing out on opportunities.

 

Just as your decision makers have “gatekeepers” who work to stem the flow of information and control who gets on these busy people’s schedules, your company also needs to have a “gatekeeper” to prevent bad sales leads from getting through to your sales team. Your sales people’s time and attention are just as valuable as your decision makers – anything you can do to free up your sales people’s time from talking to the wrong sales leads, and keep them focused on the right sales leads, is going to pay big dividends for your company.

 

 

3 Reasons Why You Shouldn’t Underestimate the Importance of Inbound Lead Qualification

Many B2B sales people and business owners are constantly complaining about their sales leads. “We have too many bad sales leads,” they’ll say. Or, “These leads are no good.” Being frustrated with the quality of the sales leads often causes B2B sales teams to fall into a trap of constantly demanding more and more sales leads (with all of the marketing expenses and lost time that this involves), only to discover that they end up back on the same treadmill of “too many bad sales leads.” Instead of wanting “better” sales leads, perhaps your company needs to ask, “What can we do differently to get better results from the sales leads that we already have?”

 

One of the biggest reasons for complaints about “bad sales leads” is very simple: a lack of inbound lead qualification. Many B2B companies do a surprisingly lackluster job of qualifying their sales leads upfront – lots of companies simply forward their new sales leads to the sales team, without ever asking any questions or doing any preliminary sorting. Or you might see situations where B2B companies route all of their sales leads through a single overworked, undertrained gatekeeper, like a receptionist or administrative assistant, who doesn’t have time to do anything other than take a message and pass it along to the sales team.

 

Don’t fall into this trap. Instead of merely passing along your sales leads (your new prospective customer phone calls, inbound e-mail inquiries, etc.), you need to put a process in place to ask sales-related follow-up questions early on – and start to rank, sort and strategize around your sales leads before the first “sales call” ever happens. Spending a bit of time and resources on creating a coherent process for initial inbound lead qualification will pay off big time in the form of long-term sales results – and it will save time for your sales people and make your sales process more efficient at every step of the sales cycle.

 

Here are a few reasons why you should not underestimate the importance of inbound lead qualification:

 

Who’s the First Person to Talk to Your Customer?

 

Who answers the phone when a new customer calls your company for the first time? Often, this first contact will make a big first impression on the customer – for better or for worse. Aside from basic professionalism and courtesy, today’s B2B buyers are expecting a bit more from the sales process – they need responsiveness and quick answers to questions. If your prospective customer has already started to research prices and features of the solution or category that you sell, then they might be ready to have a more advanced and detailed conversation than a receptionist can provide. That first customer phone call is your chance to start building a sales relationship by asking good questions and uncovering unstated customer needs. This is too important to foist off on a low-ranking staff member who hasn’t been trained in sales skills.

 

Lead Qualification Helps Build Trust and Create Customer Relationships

From the moment a new customer calls you for the first time, this is your chance to ask sales-related questions and start to uncover the customer’s unspoken needs. You need to ask good open-ended lead-qualifying questions, such as, “What difficulties are you having with your current solution?” or “How is your current solution impacting your overall business operations?” This shows the customer that you care about their overall situation and that you want to build a broader business relationship – you’re not just robotically asking them for their name and contact information. Lead qualifying questions are a way to gauge the customer’s interest, but they’re also a way to demonstrate your curiosity and care for the customer’s overall challenges.

 

Lead Qualification Gives you a Jumpstart on the Sales Process

 

Lead qualification questions will help you determine which sales leads are the most promising and highest priority. Instead of passing along all of your sales lead to the sales team, you can figure out which ones are most likely to buy, which ones are most eager to buy, and which ones might need more time for long-range lead nurturing. You can do this as simply as you prefer – for example, by setting up a lead scoring system of “A, B, and C” leads (where “A” leads are the best sales leads and “C” are the least likely to buy). This is an inexact science, but over time you will get better at reading between the lines and hearing the subtle messages in the customer conversations, so you can better predict which leads are “serious buyers” and which ones are just “tire-kickers” who are still doing their preliminary research.

 

Inbound lead qualification is an underrated, under-appreciated skill that more B2B companies need to consider investing in. It helps you gain valuable visibility into the intentions of your sales prospects, and gives you a way to organize your sales process around your best sales leads. From the moment that customer calls, you can hit the ground running by asking good sales-focused questions and by starting to build a relationship. All of these activities will help make your sales process more efficient and more profitable for the long-term.  You can learn more about our lead nurturing services by clicking here.