In this article, we are covering the types of leads, the stages of a lead and effective ways through which you can turn your leads into sales.
Sales are the only source of revenue generation for a company to survive. And everybody will agree on this. If this is the truth then why do few companies thrive on sales and many fail to do so? It is because of their inability to convert leads into sales.
It is their lack of knowledge and lack of guidance that is stopping them from achieving their sales target. So in this article, we have mentioned the types of lead variants, the stages of a lead and effective ways through which you can turn your leads into sales. Along with the common issues faced by businesses in lead generation to make you aware and prevent you from repeating the same mistakes. So let’s just start with getting to know what a lead actually is.
What is a Lead?
A lead is the first step in any business where the customers inquiries you about your product or service. The lead expresses their interest through email, text message or media handle. They are the ones who can be converted into your customers. Anyone who has money, authority and need is considered a lead. But there are certain ways through which you can reach out to them and vice-versa. What are they?
Inbound and Outbound Leads
When it comes to leads there are two major types of leads which include Inbound leads and Outbound leads. Inbound leads are basically leading where a person contacts you directly through channels like Website, Online Referral, Social media and Blogs. They might have found your content through these mediums or would have gotten to know you from someone common to both of you. Inbound leads are cost-effective and powerful. You can create brand awareness and generate more traffic to your website through inbound leads.
Read more about – 5 Powerful Brand Building Strategies for Small Businesses in Low Budget
Outbound leads are where you as a business reach out to your potential customers. Through outbound, you can reach out to people who might not be aware of your brand but would need your product and service. In outbound, you would be more aware of the people you are reaching out to. And you don’t have to wait for prospects to reach you; rather you can reach out to them and make them your customers. This can be done through Calling, Email, Events meetings and databases.
Types of Leads
The types of lead variants include Marketing, Sales, Product and services leads.
1. Marketing Leads
Marketing leads include all such types of leads where the potential customers have interacted with you using the Visiting website, Signing off for a free resource and through email.
2. Sales Leads
Sales leads are leads that indicate them to be potential customers. They are people who inquire about the features and offers. And re those who consider buying and enquire about the price/comparison etc. A sales lead is done through emails or phone calls.
3. Product Leads
Product leads are where a customer has tested your product through free sampling in the past, and freebie. Adding on to that, it also includes all such customers exposed to the benefits of the products you sell.
4. Service Leads
Service leads are where the customers have expressed to avail services by paying for the service and those who like to upgrade for higher benefits, looking at replacing the product/ service from existing tag clients.
As a business, you have numerous ways to reach out to the people who might be interested in your product or service. But you can’t simply pitch your product to everyone. First, you must know your target audience and think of effective ways to make them your customers.
Read more about – Types of Digital Marketing Channels – Use Right Set of Strategies For Your Brand
So let’s check out the stages of the lead to get a clearer view of this.
Stages of a Lead
First, the lead will get to know you from either the inbound or outbound method and will approach you.
The lead expresses their desire and enquires about the product’s price and features, and inquiries whether you offer any testing period, demo or warranty for the product.
After the lead expresses the desire, as a salesperson you will realize the opportunity. And then you will sell what is required. And you should trace the opportunity to upsell as add-ons. Products with AMC/services etc.
4. Customer Decisions
And the final and the most important stage is customer decisions. Whether they are going to buy the product /service or not to buy them.
Now you know the types of lead and the stages of a lead. Now let’s just look at the common mistakes businesses make which end up in them losing out on potential customers.
Common Mistakes Businesses do While Converting Leads into Sales
Generally, as a startup, a lot of businesses don’t know how to pitch their services and end up losing their money and time. These are the common mistakes done by businesses when they try to turn their leads into sales.
- Wrong utilisation of talent
- Wrong sales pitch
- No defined sales process
- Incapable of handling objections
- Inability to convert leads into sales
- Incompetent manpower
- Long sales cycle
- Multiple decision-makers
- Leads being handled by a single person
- Unaware of competitors strength
- Wrong product positioning and
- Unprofessional follow-up
If you need more assistance and expert advice on leads and how to convert your leads into customers, then MSMEx can help you. With its unique platform, entrepreneurs and MSMEs can connect with sales experts, marketing experts, and more. MSMEx empowers entrepreneurs with the right knowledge, at the right time, from the right expert!