Lead Generation – Quality Vs Quantity

On the topic of lead generation, Lead Quality and Lead Quantity are two factors which create an issue for any business

However it has been found that the top priority of many companies is the lead quality. Yes! It does matter a lot because generating more lead i.e lead quantity is easy but making them qualified or valuable is little tougher than the former. Quality lead tells you if the customer will buy your product or if he/she is interested in your products or services.

Hence it’s a big challenge for companies to generate more leads with highly qualified lead since they have to increase their ROI. Here we will see how lead quality and lead quantity holds its importance in B2B marketing.

Lead Quality

It is something which shows how much your customers are interested in your product and services or how likely he/she is willing to become your customer. Your customer can be any individual or any organization who are in-market depending on their kind of activities, behavior and response towards your brand.

Lead Quantity

Lead quantity means generating number of leads i.e number of leads you or your company generates within a particular interval of time. For more number of leads, your main goal should be a lower cost per lead because when the product is relatively low, more number of leads are sold.

How does Lead Quality affect ROI?

ROI is return-on-investment which means effective gain on the money you put in. It measures the amount of return on an investment relative to the investment’s cost. Higher the ROI, better will be the investment. If you improve lead quality, it will improve each customer’s lifetime value by nurturing relationships and enhancing loyalty with current clients. As a result, your ROI will be improved over an extended period.

It’s true that if you focus more on lead quality then the volume of leads will decrease because when you concentrate on lead quality, you entail shifting resource expenditure to target selected leads only. So you may be getting few leads in general, but the good thing is that your resources are being spent efficiently and you will be producing more bucks.

How does Lead Quantity affect ROI?

When you are new in the market, you are at your initial stage and so you should concentrate on lead quantity rather than concentrating on lead quality. At the initial stage you need to make people aware of your brand and so you need to sell less expensive products so that people can buy it.

Later when your brand gains popularity, you will get more potential customers and later on you can focus on target audience. This way generating more leads will result in high ROI. But it doesn’t hold true for every firm. Big firms should rather focus on lead quality to increase ROI.

Lead Quality and Lead Quantity Works in Parallel Contrast

As the sales team is supposed to concentrate on conversion rates so they look after lead quality whereas the marketing team is supposed to care about generating more leads so they mainly focus on lead quantity.

It’s always difficult to decide which would work better. However for a successful business it is necessary to focus on both. One cannot achieve success without the other. So both goes hand-by-hand. Getting more leads always be imperative for number of lead conversions and making lead quality a priority becomes important once business operations achieve a certain level of maturity. This leads to improved ROI in the long term and will reduce overhead costs.

How to create balance between the both?

• Set some goals that should be clearly stated and understood by both marketing and sales team. The best way to do it is by introducing a Service Level Agreement between both the teams where sales team will focus on converting leads i.e will take care of lead quality and marketing team will focus on providing number of leads i.e lead quantity.
• Appoint a person who will balance the needs of both team. That particular person should be able to create a harmony between both marketing team and sales team.
• You should come up with a concrete plan that both the teams can follow so that both can be on the same track.
• Rewarding you best performers so that it will not only motivate the top performers for their effortless work but will also motivate those who are below them. This will help them to put more efforts into their work in achieving target or even more than that.

Conclusion

From the above discussion we can conclude that both lead quality and lead quantity should be prioritised at the same time. It would be incorrect to say that that one is more crucial than the other. We need to keep balance between the both. Both should work in synchronisation.

Hence for a successful business both lead quality and lead quantity should be equal attention. If one converts the lead then other nurture relationship with potential customer. It will remove any kind of doubts regarding the next action for your lead generation strategy.