Imagine this: You’re the captain of a ship, ready to sail into uncharted waters. Your crew is on board, but there’s one problem—everyone has a different idea of where the treasure is buried. One thinks it’s under the X on the map, another swears it’s in the next cove, and the cook is convinced it’s hidden in the galley! Confusion reigns, and before you know it, you’re drifting in circles. Sound familiar? This scenario isn’t just about pirates and treasure; it’s the reality for many businesses when it comes to defining what a ‘lead’ truly is.
What’s in a Lead?
When your marketing team throws around the term “lead,” what exactly are they talking about? Is it someone who signed up for your newsletter? Or perhaps someone who attended your webinar? Maybe it’s the brave soul who called in asking about your pricing? If your teams can’t agree on what constitutes a lead, it’s like sailing without a compass—you’ll struggle to navigate effectively.
The Importance of Sales and Marketing Alignment
Sales and marketing teams often have a rocky relationship, which is unfortunate because companies that align these two functions tend to generate a whopping 208% more revenue from their marketing efforts than those who don’t. It’s like having a well-oiled machine: when both teams work together, they can target the right leads more effectively and drive better results.
The Blame Game
Sales teams often blame marketing for providing “bad” leads, while marketing believes they’re delivering golden opportunities that the sales team just can’t close. Establishing a common definition of a lead sets the stage for collaboration and mutual understanding.
What You’ll Need
Ready to redefine your leads? Here’s what you’ll need:
- A Meeting Space: Whether it’s a physical room or a video conferencing platform, make sure everyone can participate.
- Your Marketing and Sales Leaders: Get the key players in the room—this needs their input to be effective.
How to Define a Lead for Your Business
Step One: Define What You Mean by a ‘Lead’
Start by crafting your own definition. The more specific and detailed your answers, the more valuable your definition will be. If you’re stuck, consider these questions:
- What industry do they work in? Understanding your target market is crucial.
- What is the job role of the person you’re targeting? Different roles have different needs.
- Where are they in the decision-making process? Are they just browsing, or are they ready to buy?
- What kind of budget do they have access to? Knowing their financial capability can help tailor your approach.
- Why are they interested in your product or service? Understanding their pain points can help you communicate better.
- What’s the company’s size and revenue? This can influence their purchasing power.
Step Two: Decide When a Marketing Lead Becomes a Sales Lead
Lead generation isn’t a one-step process; it’s a journey. Here’s a simple breakdown:
- Marketing Qualified Lead (MQL): A potential customer showing interest in your company who can be reached by your team.
- Sales Qualified Lead (SQL): A potential customer who has shown intent to buy and is ready for a sales conversation.
- Customer: Someone who has purchased from you and may do so again.
It’s essential to clarify what level of intent is required for MQLs and SQLs. If not, you might waste efforts on those unlikely to buy. Here are some criteria to consider:
- Made an inquiry about working together through your website.
- Described their challenges and asked how you could help.
- Converted on one of your landing pages.
- Requested to see your pricing or case studies.
- Met you at an event and expressed interest in your company.
- Asked for a proposal or quote.
Step Three: Gather Input from Your Marketing and Sales Leaders
Now comes the enlightening part. Ask your marketing and sales leaders to create their own definitions of a lead. Marketing might define it as someone who clicked a link in an email or signed up for a webinar, while sales might see it as someone who has already decided to buy and is just looking for the right partner.
Tip: Avoid leading questions. Don’t share your pre-prepared definition; let them express their views freely. This openness will yield more genuine insights.
Step Four: Discuss and Agree on a Common Definition
By now, you should have several definitions for a lead. It’s time to merge them into a cohesive understanding. This stage acts as a reality check for both teams.
- Identify Differences: Where do the definitions diverge?
- Spot Overlaps: What do they agree on?
- Find Compromises: What can both sides settle on?
If you find yourselves with completely different definitions, don’t panic! This is actually a golden opportunity to understand each other better and work towards a shared definition that will guide your targeting efforts.
Step Five: Communicate with the Rest of Sales and Marketing
Once you’ve settled on a joint definition, it’s time to spread the word! Share this new understanding with your sales, marketing, and senior management teams.
- Via Email: Send out a detailed explanation.
- Present in Meetings: Use monthly company meetings to discuss the definition.
- Display It: Hang it on the wall as a constant reminder.
Why This Matters
When both sales and marketing teams are on the same page about what a lead is, your business can more effectively target potential customers, streamline processes, and ultimately drive more revenue. You’ll no longer be sailing in circles but navigating confidently towards your business goals.
Final thoughts
Defining what a lead is for your business may seem like a daunting task, but it’s essential for success. With a clear understanding and communication, your teams can work together seamlessly to convert prospects into customers. At Empire Base, we’re here to support you every step of the way, helping you build and grow your business empire like a pro.
Ready to take your business growth to the next level?
Reach out to the Empire Base team today, and let’s turn your vision into reality!
