The identification of a person or entity that has the interest and authority to purchase a product or service is a Lead. They are mainly as follows:
Online Leads
Filling internet Form(s)
Phone Calls
Physical Form
From whichever form, a lead typically constitutes the contact details of a person – either a consumer or representing a company – interested in learning more about a product or service, with a view to purchasing it. Qualified lead constitutes more than just contact details. It includes further information on the person or the company they represent, information that qualifies them for a certain product. Typical qualifying questions relate to:
► Budget – If they have enough money to buy the product ?
► Authority – If they can make a purchase decision ?
► Need – If they have a need that the product or service in question can fulfill
► Timescale – If they have a specific time when they wish to make their purchase
Answers to the above questions at the lead stage, a company can prioritize the leads gathered and focus on those most likely to convert to sales in the short term. These are then considered 'qualified leads'. Further definition of qualification for a lead is verification that the details provided are correct. This can be done either via automated checks on a form or, even better, by calling the person in question to confirm their details. There is debate on the advantages of more or less qualified leads. Basic leads, which could be as limited as a name and an email address, will cost as little as a tenth of the price of qualified ones, but conversion rates will be very low, and potentially even non-existent. In addition, greater investment will be required in order to convert each lead to a sale. With qualified leads, a better conversion rate is guaranteed, although the higher the cost, the better the rate required to generate a good ROI.
Qualified sales leads are characterized by several different variables. Most important is an expressed interest in the product or service. But that is not the only factor. The lead must also be prepared to buy offered product, and more to the point, must have the financial means to purchase it. And when searching for leads there is the factor of time: if that lead is ready to buy offered product, that means he or she could be ready to buy a similar product. The older your leads, the less likely that they are leads anymore.


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