How to determine good leads from bad ones

Striking up a digital profitable relationship with complete strangers seems quite intimidating, but this process of generating new leads keeps your business moving forward. 

Unfortunately, as we all know, the internet is overflowing with leads however not all the leads that come are considered good and qualified. 

Thankfully, though, we hunted down a checklist for you to determine whether a lead is worth pursuing. 

Before launching your lead generation game plan, you have to understand what a lead is and what lead generation is. 

What is a lead?

A lead is any person who indicates interest in your product or service in some way, shape or form. Leads are part of the lifecycle that consumers follow when they transition from visitor to customer. 

What is lead generation?

In plain and simple terms, lead generation is a way of warming up potential customers to your business. 

Lead generation is a strategic pursuit that involves finding unique ways to attract people to your business. You want to provide them with enough goodies to get them interested in your brand and eventually want to hear more from you. 

Ok, let’s tick each item off one by one. 

Consider where the lead came from

Leads that come from marketing efforts are generally worth pursuing such as an event, online form, webinar, social media campaign, your blog or video marketing. Regardless of where they came from, they need to give you enough information to connect them with your business or industry. 

Gauge their level of interest

Think of it like a conversation. Do they show interest in having a conversation with you? A good lead would ask questions, easily respond and participate. A bad lead doesn’t actively engage with your messaging and content at all. If it takes work to communicate with the lead, then you need to reassess your efforts. 

Means of do business

You need a crystal-clear idea of their financial situation before you even begin to solve any problem. Can they realistically service the loan? If they don’t have enough funds then there is very little you can do to accommodate them. Cut them loose. 

Decision making power

You have to determine if the person you are pursuing has the authority to actually make a purchase. Bad leads are individuals who have little to no power. Cut and run. 

Lead scoring

Lead scoring is a powerful weapon that allows you to apply a point system for contact action or inaction based on what’s important to your business. 

There are platforms with lead scoring capabilities and specific criteria is up to you to decide. Pursue the leads with high scores to increase your chance of success for a potential sale. 

Lead nurturing 

Sometimes your leads need further nurturing to take action so lead nurturing is a way to educate and persuade them and convert them into a sale. Regular content and communication are key. 

Final words

Let the leads flock your way, analyse them and weed out those leads that will never close a deal. Remember to follow up without delays as soon as the lead makes an inquiry on your website or fills in the opt-in form on your landing page. 

Don’t be discouraged if your service isn’t flying out the door. Be open to feedback from customers, watch what they respond to the most, then try tweaking things a little bit (improve your landing page experience and your lead magnet) and give it another go. 

Don’t beat about the bush and don’t be shy to tell people what you want them to do. It’s all about being clear, honest and confident: “I have a great service, it’s great for these reasons, so choose my service”. But there’s a fine line between being confident and being too intense. Much data has shown that toning down your language encourages more click through and eventually more sales (instead of ‘Buy Now’ say ‘Learn More’). Let people poke around and investigate further, ease them in slowly and you’ll have a better chance of getting that sale at the end of the process. You’ve got this.