Improve Lead Quality with CRM
You might have seen, read, or heard a lot about lead generation and lead quality here and there on the internet or in different articles. But, what is it really? Why is it so important to pay extra attention to your lead generation process to ensure that the leads you acquire are of the highest quality? Is it even possible, or is it something out of your control? If yes, how can a CRM system help you in this way? All these questions are going to be discussed here in this article.
So, let’s start with the basics.
What are “Leads”?
Leads are potential clients found by your sales team. These are people or businesses that might be interested in your services. This way, you can focus your attention in marketing and campaigns on these targets because you know there is a higher chance that they will start getting services from your brokerage company than other people. CRM systems have helped marketing teams considerably in this sense since their emergence. They have the ability to suggest or generate leads for your business. CRM does so based on clients’ interests, hobbies, social media activities and posts, age, sex, location, educational background, purchase history, and so many other factors.
In addition to this, advanced CRMs these days have taken the lead generation to a whole new level. They are able to tell you which of these leads are more likely to start investing at your brokerage company and buy your services using a complex algorithm known as “lead scoring.”
Why does the “Lead Scoring” system NOT always work?
If you have ever supervised or just observed the work of a marketing team, you must have seen them tossing some of the leads aside when they are making calls or contacting people via email. This is because they are using the Lead Scoring system that believes these leads are not “ready” to invest yet. The idea of the lead scoring system is that it is supposed to improve the quality of your lead generation. Well, not necessarily. The high quality of the generated leads in this case only means that the chances of them making a purchase at your company are higher than the rest of your leads. In addition, the lead scoring does not help you with how much money this lead will be bringing to your brokerage or what kind of services they are interested in buying.
So, in other words, the lead scoring system only increases your chances of closing a deal with a lead but does not guarantee an increase in your ROI (Return On Investment). Also known as Return On Costs, Return On Investment is a percentage or ratio that measures or evaluates the efficiency or profitability of an investment. In this case, the investment you are making for your brokerage company is the campaign or the marketing techniques you develop in order to attract more clients.
Even though CRM systems use artificial intelligence in their operations and run almost flawlessly in many cases, they are still not that smart to take all your preferences as a business owner into account when it comes to lead generation and scoring. Later in the article, we will discuss your preferences if you wish to increase your profitability and ROI.
Lead Quantity vs. Lead Quality
Sales and marketing strategies traditionally suggest that you try to reach as many people as possible. In fact, in most cases, the ability to attract a high volume of contacts during a lead generation process or campaign is often preferred over lead quality. This was because the official dogma used to dictate that the more leads you have, the higher the chances are that some of these leads will convert into actual sales. It makes sense, right? The answer is yes. It does make sense. However, if you look at it from a different perspective, it does not.
Think about where these potential clients might be from. For example, if they are from countries where their local or fiat currency is much weaker than your currency or the one that you have set up your brokerage company with, then it is improbable that they will bring a lot of profit to your business if any at all.
In these cases, your Return On Investment (ROI) plays a crucial role. First, you need to calculate how much you have spent or invested to generate that lead. And then, somehow estimate what kind of services that potential client will purchase from your business, or in other words, how much money they are likely to invest at your company. If the maximum amount of money they will bring to your business is less than the money you have spent in order to generate that lead, do you really think this lead is of high quality? Even if you have a large number of these clients, in most cases, due to the economic situation in their countries and the low value of their local currency in the international market, no matter how many of these clients you have and regardless of the amount of money they bring to your business, it is not going to compensate for the money you have invested in campaigning for marketing your services. Therefore, it is not worth it. You are spending the same amount of money and making the same amount of effort but getting less profit from clients from some territories.
How Can CRM Help Lead Generation?
A good CRM system from a reliable provider like ClickaCRM can help you a lot in finding high-quality leads. The CRM system can calculate and issue regular reports to let you know how much money you have spent or invested in order to generate each of your leads. Advanced CRM systems can also estimate how much each lead might be willing to invest at your brokerage company or what kind of services they might be interested in.
You can use this information and these figures to go through your leads carefully and focus on the ones that are likely to bring your business the most profit, who we call really high-quality leads.