Companies that are new or inexperienced at lead generation often suppose that generating more sales leads is always a good thing. But that’s only half true: Quality of leads (particularly B2B sales leads) is more important than quantity.
In fact, unqualified sales leads are worse than having no leads at all. Why? Because unqualified sales leads cost your business in the following five ways:
1. Unqualified Sales Leads Cost You Time
Nothing is more valuable than your sales team’s time. Without qualified sales leads, your salespeople have to wade through more cold calls, follow-ups and lead qualification questions – all in the hopes of finding a qualified lead that might turn into a finalized sale.
Your sales team’s time would be better spent following up on only marketing qualified leads that are certain to convert into closed deals at a higher rate.
2. Unqualified Sales Leads Cost You Money
Lead generation is one of the most expensive parts of your sales process. Between in-depth analytics, marketing automation software, lead databases and the cost of hiring sales personnel, your lead generation has a lot of costs to justify in terms of ROI. If you aren’t receiving high quality leads while simultaneously absorbing all of these fixed costs, your lead generation is bleeding money.
If your cost of generating sales leads isn’t paying off, consider outsourcing your lead generation to a firm that specializes in that stage of the sales cycle.
3. Unqualified Sales Leads Cost You Cleanup
When one of your salespeople gets off the phone with a dead-end sales lead, his or her work on that lead isn’t done – the salesperson still has to go into your lead database and clean out the contact’s information. Now, imagine that small expense of time and opportunity cost multiplied by hundreds or thousands of unqualified sales leads.
You can’t afford that scale of cleanup year over year. Rather, you need a B2B sales lead database that’s clean and qualified at all times so your sales team is able to focus more on closing significant sales.
4. Unqualified Sales Leads Cost You Customers
Not only are unqualified sales leads less likely to close into finalized deals, but they’re also more likely to perceive your cold calls as interruptive or irritating. As a result, prospects’ negative association with your brand is likely to hurt your overall reputation as a company once word spreads about your aggravating cold calls or misplaced sales calls.
When you decide to pursue only qualified sales leads, prospects (even ones that don’t eventually close) don’t perceive you as being interruptive or annoying – and your reputation remains intact.
5. Unqualified Sales Leads Cost You Morale
The experienced salesperson lives for the close – not the initial cold call. By feeding your sales reps a bunch of unqualified sales leads, you’re costing your company a substantial morale drain. In fact, if your sales team didn’t have to do any outbound prospecting at all, not only would your close rate increase, but your team’s morale would experience a significant boost.
Instead, leave lead generation to the experts and let your team get back to what they love most: closing the deal.
Unqualified sales leads are costing you, and in at least five ways, they’re actually costing you more than having no leads at all. So next time you’re reviewing your lead generation efforts, remember to look first at quality before quantity.
Need help with B2B sales lead qualification? Contact Invenio Solutions® and discover how a closed-loop sales cycle gives your sales team the insight it needs to drive revenue more effectively for your business.