Hand on your heart, how would you answer these questions: Is your team truly delivering effective lead management? In your business today, do you think there might be missed opportunities, wasted resources, or a stagnant sales pipeline? If you are grimacing (just a little bit) as you read this, then the answer is probably ‘yes’. The good news is that by amping up your lead management process you should be able to address these issues. It is easy enough (but not quick) and will almost certainly produce better conversion rates and drive revenue. In fact, with a recent customer, we have seen a 19% conversion rate of prospects to Marketing Qualified Leads (MQLs) of those 32% converted into customers, 9 months after implementing a new lead pathing process and streamlining lead management. Prior to that MQL to SQL (Sales Qualified Lead) conversion sat at 21%. In this particular example, it meant that there was potentially thousands in revenue being left on the table.
MQLs v SQLs and why both are important
MQLs represent potential customers or customers who have shown interest and engagement, and are more likely to become a customer or make a repeat purchase because they meet the criteria established by marketing and/or sales as being ready to be passed to the sales team for follow up and conversion. Those not quite ready to take that step are in the perfect place to be nurtured with relevant content that guides them towards purchase.
SQLs indicate prospects who have met specific qualification criteria established by marketing, and then been vetted by sales as having expressed an intent to purchase, enabling sales reps to focus their efforts converting them into active customers.
Tracking MQL to SQL conversion rate is important because it provides valuable insights into the effectiveness of your lead qualification efforts, measures marketing-sales alignment, and facilitates process efficiency enhancements over time.
The true cost of ineffective lead management
Neglecting paying attention to lead management ultimately means leaving money on the table.
While conversion rates can vary depending on factors such as product complexity and market saturation, a standard benchmark for conversion from MQLs to SQLs in Life Sciences typically ranges from 15% to 25%. Achieving a 32% conversion, as we did for one client, translated into a whopping 17M in first-touch revenue. Not bad for proving the value of content marketing, right? So, what was the process that we followed?
The process
Guiding from curiosity to conversion
It all begins with lead-generating content, the backbone of marketing efforts. Providing consistent value (not just relevance) is crucial for building trust and credibility. Some of the most effective pieces of content at this stage are webinars, case-studies and editorials featuring scientists talking about a specific issue they have experienced, and how they solved their problem(s). We recommend setting up automated nurtures based on prospect behaviour to help move them toward a purchasing decision. In every email within our multi-part lead nurture streams, we ensure call to actions (CTAs) are clear (you only need one) and we try to keep those fuss-free. Much experience and testing in our sector has shown that Europeans and the US folk prefer text-only (rather than HTML format) emails (although we would still advocate testing as this might not be the case for all target audiences). Our own email performance data suggests that the shorter the message, the better, and focusing on measuring outcomes (aka CTA activation rather than open rates) is the best way to judge effectiveness.
Quality over quantity: scoring & CRM
One of the ways to really turn the needle with your lead management is to implement a robust lead scoring system to help prioritize high-quality leads for sales follow-up. Start by identifying characteristics of your ideal customers (ICP) and then pinpoint actions indicating a lead’s interest and engagement, like website visits, content downloads, and webinar attendance. For each engagement criterion (it has to be high value like a demo request or a webinar attendance) assign point values based on relevance to your ICP, then you can establish thresholds for lead scores that indicate different levels of engagement or readiness to buy. For example, leads with scores above a certain threshold may be considered MQLs and passed to sales or telemarketing for follow-up.
Finally, integrating your lead scoring system with your CRM platform and marketing automation software streamlines data handling, eliminating manual tasks. This part takes time and a specialist who knows the ins-and-outs of your particular CRM and other platforms that it may need to be ‘talking’ to.
Post-implementation, continuous monitoring, measuring, and reviews are crucial. Involve your sales teams throughout and develop training and documentation to support these efforts for optimal results.
Fool-proof follow-up tips
In the fast-paced world of lead management, speed is essential. Every company has room for improvement in this area. Aim for immediate, highly personalized follow-ups tailored to each lead’s interests and needs. Offer something valuable with every interaction, using a varied suite of content such as case studies, technical notes, infographics, or whitepapers. Utilize multiple channels like email, phone calls, social media, and personalized video messages to engage effectively. Implement automated follow-up sequences to ensure no leads slip through the cracks. Finally, listen, respond, and continuously monitor signals from potential customers to deliver timely information and drive conversions.
Benefits of doubling down on lead management
- Increased conversions: By nurturing leads through targeted engagement, we optimize the conversion process, driving revenue growth and maximizing ROI.
- Enhanced efficiency: A structured lead management system streamlines operations, empowering teams to focus their efforts on high-potential prospects and capitalize on opportunities effectively.
- Improved customer experience: Personalized communication fosters trust and loyalty, cultivating enduring relationships with customers and bolstering brand reputation. And who doesn’t want happier customers?
- Alignment between marketing and sales: Clear criteria for lead qualification facilitates seamless collaboration between marketing and sales teams, ensuring a cohesive approach to customer acquisition and retention.
- Informed decision-making: Insights gleaned from lead management analytics inform strategic decision-making, enabling agile responses to market dynamics and emerging trends.
In summary, effective lead management isn’t just another box to check; it’s pivotal for gaining a competitive edge. Mapping out your lead journey and ensuring segmentation, scoring, nurturing, and alignment are in place can double conversions within a year. Consider partnering with Qincade to navigate these steps systematically and reap the rewards of your hard-earned leads.
Science marketers, do you agree? Tell us which strategies have been most successful for you. Email us at hello@qincade.com
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