Sales and marketing executives know the criticality of getting business. Cold leads are difficult to convert into sales.
Gone are the days when sales executives used to put incredible efforts into it. Moreover, it was an annoying and troublesome task. Hence, winning a deal was a reason for celebration.
However, thanks to the development of the digital marketing strategy, now the prospective clients know quite a lot about your business. Thus, they fall under a new category; the warm leads.
Converting them a warm lead to the customer is not that daunting as converting the cold lead was. Here you have to push a little push and you hit the Bull’s Eye.
Why does a warm lead have a higher possibility of getting success than the cold lead?
Warm leads are looked like a sure way to success
Since a warm lead is a potential customer who has shown a keen interest in the product or service, it is pronounced that salespeople are not required to put excessive efforts in converting them.
They have either signed up for the weekly newsletter, or they have shown interest in receiving promotional SMS or they are following the company on social media.
They must be reading the blogs or articles published by you on the website.
All these things indicate that they are interested in your company.
Since the potential customers already have a fair knowledge about you, it takes less time to mature the lead as compared to cold leads.
More promising warm leads do not have the level of reluctance to engage with the company.
Moreover, the majority of warm leads come to you, not the vice-a-versa. Therefore, it is much easier to give that ‘necessary push’.
The focus shifts from cold leads to warm leads
It has been observed that the focus is shifting from cold leads to warm leads because companies find it much convenient and fast way of conversion.
When people approach a brand or service provider after thorough research, it is very much possible that the deal will be successful (15% in case of warm leads as compared to merely 1% in case of cold leads.)
Customer conversion is pretty costly. Therefore, you must make the judicious use of every penny. Due to impressive strike rate, warm leads are preferred by entrepreneurs and business owners.
Why do entrepreneurs prefer warm leads?
Experts praise warm leads
Research is being carried out across the world to estimate the potential of warm leads, and the results were amazing.
Studies concluded that since it is quite time-saving and reliable, more entrepreneurs nowadays believe in warm leads.
They assign sales representatives specific cases, and the majority of them get converted into customers.
It is easier to tap warm leads
Yes, with the digital age, we move to a world where information is available easier than before. Everything is available at a few clicks.
It is beneficial for both customers and business owners. The amount of data that is getting created year after year is just mind-boggling.
Thankfully, there are smarter and faster tools that can dig out meaningful information from the heap of data.
One phenomenal use of this data is to find out potential warm leads and bring them to the customer pool.
Due to the easy access and feasibility of fetching relevant information, conversion of warm leads into customer base is a reality.
Evaluation becomes easy
With several intelligent proprietary algorithms available today to rank the warm leads, it is very easy to calculate the effectiveness of it.
The evaluation process uses several parameters such as budget, authority, the need of the product and time frame.
Budget determines the potential they have to buy the product whereas authority indicates the decision power. Need of the product means how eager the users are about buying the product.
After finding out the best leads, it becomes much easier for entrepreneurs to tap the profitable ones. Warm leads contacted versus customers converted gives the effectiveness ratio.
Hot lead-a new concept
Hot lead is a qualified lead which is one-step further in the buying cycle.
In case of warm leads, your customers know about you. And they know what services or products you offer. However, it doesn’t mean you have the 100% guarantee of getting the business. They may change their mind if there is something more influential.
In case of hot leads, they search for your service or product specifically and want to have an experience. It has become possible due to the digital age and online business.
Here, the probability of closing a successful business deal is much higher (in fact 100%). Therefore, many people prefer it.
Does it mean that cold leads will as dead as a Dodo!
The cold call will keep on generating sales leads in future also. Yes, the rate of generation and conversion rate may drop.
However, cold leads may get you off on the wrong foot with the potential customers. They might become suspicious about the sales motives.
It is the reason; warm leads (or hot leads for that matter) emerge as the better and superior choice.
Quality of the product matters
Whether it is the warm lead or hot lead, entrepreneurs should not forget that ultimately quality and value for money are the winning factors.
When your buyers feel that they are getting more than what they are paying, it is guaranteed that they will come again.
The persona of the customers plays an incredible role when they see your services or products. Their age, gender, income level and financial status are some of the factors that make or break the buying decision.
Hence, other than paying attention to the cold, warm or hot leads; successful entrepreneurs study these aspects as well. It makes the business competitive.