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B2B Friday: Is it a Lead or Is it Not?

Posted by Trish Bertuzzi on Fri, Oct 02, 2009 @ 11:36 AM
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Welcome to the 4th Quarter. Or as IDC's Lee Levitt put it "the most important quarter of the decade." Now onto today's B2B thought.

B2B Thought: Addressing the Definition of a "Lead"

I participated in a conversation over at Robert Lesser's blog on An Identity Crisis for the Sales Lead.  Here is Robert's premise:

Do you find it startling that many sales and marketing teams still cannot agree on the definition of a sales lead?

The irony of course, is that the deliverable for sales is crystal clear - the sale. The contract is signed and the PO received. The heavy lifting from sales is finished and that of accounts receivable begins.

But for marketing, whose key deliverable is often the qualified lead, the picture is confusing: the definition of a sales lead can be all over the map. Is a lead an appointment a qualified lead(or both)? Is a lead an inquiry, a trade show visitor, a webinar registrant, a downloader of a white paper or a referral?

Good question and one that organizations ask themselves on a regular basis!

Here is how I responded:

Let me add a twist. Lead definitions are fluid. Sometimes sales cares more about "activity" and other times more about "opportunity".

"Activity" based lead definitions often occur when you have just introduced a new product and need to talk to anyone and everyone. Or, when you have a significant number of new sales reps and need to get them out there talking to prospects as quickly as possible.

"Opportunity" based lead definitions often occur when you have a mature and stable product and sales organization that want well qualified leads that have true potential.

I agree with Brian Carroll when he talks about the need for sales and marketing to have consistent huddles to discuss this topic because the requirements of sales are often fluid and they need to communicate that effectively to and with marketing.

So, what do you think and how do you address lead definition in your organization?

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COMMENTS

Given the proliferation of systems designed to 'suss' out visitors to web sites, AND the intersection of a generation of marketing people who have never engaged in direct sales, the confusion is not surprising......and it is very deep.  
 
Going back to a very old, yet simple filter we used to use in the early days of selling email software (yes Virginia, it wasn't always 'free'!), the steps we're Suspect, Prospect, Lead, Qualified, Projected.  
 
The real mess in the 'biz' happens around Suspects and Prospects. Suspects are/we're folks who have mad an unqualified expression of interest. Unqualified meaning that we know they are interested in something, but what, and why we do not know.  
 
Prospects are/we're folks where we know something about their interest, but have not yet created a trust relationship with. Either they are not able or willing to disclose, or the seller has not spent enough time with them yet for anyone to open their kimono enough - yet! 
 
A sales lead is when they are willing to open up enough to share info about the problem/issue they are trying to solve. Once we have some understanding about what is 'bugging' them, or what their 'desire' is, they are ready to be qualified. More questions. If they don't / won't open up, they are not a lead, AND will ultimately waste a ton of your selling time looking for free consulting and competitive data to support the decision they've already made. All at your expense.  
 
Qualified leads have many characteristics, not the least of which is 1. Urgency to solve a problem 2. Budget or ability/willingness to get some 3. Decision authority, or confirmed access to it 4. Decision process AND due diligence process 5. A decision date // implementation date 
 
Qualification is the bar-none most important part of the selling process. These 5 pts are the minimum, and it gets a lot deeper.  
 
Projected is your affirmation of your qualification process. It means that the business comes in, at a determined budget level, within the time interval you specify. Once you project, sales management gets an expectation of that business. If you can't project, they are not fully qualified.  
 
This is the professional selling perspective, relating to products/services that must be sold, not simply bought ie; web books, widgets, canned software, etc.) 
 
One definition of the relationship between Sales and Marketing is this. Marketing creates demand, Sales fulfills it (gains commitment).  
 
Ultimately conversion = $, the track that drives the whole process. 
 

posted @ Friday, October 02, 2009 1:17 PM by marty tascona


I also agree with Brian Carroll that sales and marketing should “huddle” frequently to make sure they are in alignment on the definition of a qualified lead and that everyone is delivering on their commitment. Prior to that, however, sales and marketing leadership needs to define what constitutes a lead that sales will follow up on and what needs to be put into a nurturing track. (still not inconsistent with Brian’s views)  
 
 
 
The litmus test to whether or not you have true agreement is whether sales is following up on every single lead sent to them. If not, it may be that the definition is wrong and the leads are unqualified. Or, it’s possible that the sales team didn’t understand their commitment. In either case, sales and marketing leadership needs to “huddle-up” once more. 
 
 
 
All the best! 
 
 
 
Melissa Paulik

posted @ Monday, October 05, 2009 1:45 PM by Melissa Paulik


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