Analysing your lead quality

Oct 12, 2021 10:49:19 PM | Analysing your lead quality

We all ask about the average cost of lead. Yet the real question is: How much is the given lead worth to us and based on what do we decide?

When you type cost per lead into google you receive over 2,500,000,000 results and the top five questions that people ask are:

  • How do you calculate cost per lead?
  • What is a good cost per lead?
  • How much does a lead cost?
  • Why is the cost per lead important?
  • How much does a sales qualified lead cost?

It is fair to say that when it comes to the subject of lead generation and how much a lead should cost, we are overwhelmed with the amount of data available to us. So much so that you might think that once you have a regular supply of leads the problems disappear.

So why is it that so many companies are generating leads but still aren't happy with their lead generation? Maybe they take too long to nurture, sales are complaining about the quality of the leads or they simply are not ready to buy right now.

Whatever the reason, there are many companies looking to scale that is still plagued by lead generation problems. In this article, we are going to propose a different approach to tackle your issues. Rather than concentrating on cost per lead, we will analyse the quality of your leads. 

Consider this, if high quality leads offer the greatest chance of success then shouldn’t we be analysing where they come from, how many we have and how we can get more? 

The result of this would be fewer headaches and faster growth. 

 

Define quality 

Before we can analyse our leads for their quality we must decide how we define quality. Typically this will be a combination of firmographic, demographic and technographic data. 

Common examples you could have are:

Firmographic

  • Location 
  • Industry
  • Company or department headcount

Demographic

  • Role/Job title
  • Job Function 
  • Seniority 
  • Pain point

Technographic 

  • Technology being used

By combining these data points you can create grades of how high quality a lead would be. For example a grade A lead could be:

  • Based in the UK
  • Within the B2B SaaS industry
  • Between 15 and 20 employees and at least 5 employees are in the product team
  • Your main contact is the CEO
  • Their pain point is their product team are not staying on top of bug fixes 
  • They are managing their bug fixes in Asana. 

This may seem like a lot of data points but you would be surprised how much of this can be gathered simply by knowing someone's names, email and pain point. Many CRMs have built-in AI to populate much of this information and data enrichment can fill in the gaps. 

Now we have a definition we can use to measure your leads against. 

 

How to analyse them

When it comes to analysing your leads there are two ways this can be achieved, you can analyse your leads manually or automatically. Much of this will depend on the functionality of your CRM but they both achieve the same end result. However, doing so automatically has a much greater capacity for scale as well as saving you time. 

In our example we have the following 6 criteria equating to an A grade lead: 

  • Based in the UK
  • Within the B2B SaaS industry
  • Between 15 and 20 employees and at least 5 employees are in the product team
  • Your main contact is the CEO
  • Their pain point is their product team are not staying on top of bug fixes 
  • They are managing their bug fixes in Asana. 

In simple terms, if we give each criterion that is met a score of 1 then an A grade lead would have a score of 6. We could then implement a grading system that could look something like this:

0 to 2 points - C Grade

3 to 4 points - B Grade

5 to 6 points - A Grade. 

For each lead that enters our CRM, we can apply this grading system. The result is every lead you acquire will have a grade that you can use to analyse. The goal here is to provide you with the data so you can ask the right questions.

  • Everyone is an A grade but still struggling? Maybe you misdefined the criteria or there is a problem with your nurturing or possibly sales
  • Lots of B grade leads? How can you go about adjusting your tactics to turn these in A grades?
  • Lots of C grade leads? Maybe you need to try new tactics to improve your targeting
  • Do you have a mix of grades? Look at what sources the top leads are coming from, these are the areas you should be investing more money into 

Measure the impact 

By asking the right questions you can turn more and more of your leads into A grade opportunities. 

The results will be clear: Better quality leads mean a better fit for your business and which ultimately leads to better results in the metric that matters... Revenues.

Written By: Dan Wheatley