6 Harmful Effects of Improper Lead Distribution on Lead Conversions!!

Most Businesses generate Leads through their websites and distribute them to their Sales Team. They overlook those Leads which should be a priority and target all Leads with a similar approach. There are a few major negatives which a business has to face when they ignore the importance of Leads Distribution. Interestingly, most of the businesses which adopt such an approach are aware of it and still, they continue with the similar process.

Here we will discuss these five major negative influence which you are exposed to when you ignore the importance of Lead Distribution tool –

  • Unable to Capitalize on Hot Leads — When you accumulate Leads, each Lead doesn’t show an equal potential of conversion. This is a fact which one shouldn’t miss out on. But sadly, most businesses don’t pay a heed to it. This is a conceptual error which one should never do. There are few people who don’t want your product but they get listed in your leads just because they wanted some information. Whereas certain Leads are in a hurry to purchase the services and therefore termed as Hot Leads. When you don’t reach out to such Leads you are inevitably pulling back your conversion rates.
  • Delayed Response — If you don’t prioritize your Leads, then you are going to waste your time on non-productive Leads. Moreover, if you try to convert all the entire bundle of leads accumulated by you, you are going to delay your response by a significant margin and those who would reach to your Hot Leads before you do, will probably encash it. So if you don’t work on the important aspect of Lead distribution, then you will reach to the Leads after they have opted for some other options who had approached them before you could.
  • Higher Cost per Conversion — Let us understand this with an example. Suppose, you have 100 Leads and you target all of them. Then, first and foremost, it will take more time to reach out to each lead one after the other. Secondly, it will consume more human resources to target each Lead. Now in the second case, you have prioritized just 40 leads out of these 100 Leads. Then you need less effort and time to target these 40 Leads. In the end, you get only 25 conversions in both the cases because only these 25 were actually interested in purchasing the product/service. So in the first case, you have 25 conversions out of 100 and in another case you have 25 out of 50. So you spent less time and effort and still get the same results. Now, which one do you find more productive?
  • Less Profit — Business runs on a very basic principle of profit. If you extract more profit, then your business grows and if you extract less profit then you ought to suffer. There are many businesses which carry out a high volume of sales but spend equally high amount for the same. Small Businesses can’t afford this luxury. They have to extract maximum profit from least expenditure. When you don’t distribute your leads in an organized manner, then you will either end up with more expenditure or lesser profit and both of them are really dangerous for the health of your Business.
  • Larger Team, More Investment — To manage all your accumulated leads, you will need to invest more on the teams and other necessary resources. But as your Leads will remain the same in any case, so the probability of conversions will also remain constant. Thus you will have to spend more but ultimately get the similar results. There are many businesses who are already frustrated with such a tactic. But unfortunately, they still remain ignorant.
  • Demotivated and Passive Sales Approach — You must not forget that the character of your sales team is eventually influenced by the outcome of their approach. A team which shows a healthy conversion rate is more likely to have a positive mindset and filled with enthusiasm. Whereas in the case of a team which is getting poor conversion rates there is stress, tension and depressed frame of mind. They will regularly get into issues and arguments. This is a genuine human behavior and you can’t help to change the mindset. A success is the most vital motivation while continuous failures will create a moral fatigue with time.

(Learn the importance of user engagement for a seamless flow of Visitor to Leads to Conversions.)

Lead Distribution is directly proportional to Lead Conversion!

This is a universal truth which is justified by the facts. Whether it is a large Business or it is a miniature business, Lead Conversion is important. But, how can you expect high conversion rates without planning and organizing your Lead distribution in an apt manner? Lead Distribution is the key factor which triggers your sales. A collection of healthy leads can receive really encouraging conversion rates while a collection of ill leads will eventually lead to poor sales performance. So it is the high time to recognize the invaluable role of Lead distribution in lead conversion. And if you don’t, well results will force you after a while…