Creating an effective lead generation program is a challenge for most businesses. Problems usually range from not having enough leads to not having enough qualified leads.

A good lead program not only builds sales, but it does so with higher conversion rates and lower costs by pre-qualifying prospects. It can also create a faster ramp-up time for new salespeople.

To make a lead generation program work, no matter its type or size, there are several basic principles organizations must keep in mind.

Use technology wisely.

Today’s lead generation technology is certainly an improvement over flipping through the phone book, but high tech isn’t without its issues or investments. Whether relying on a supplier or fielding Internet search opportunities, organizations should treat lead generation like any other marketing investment. They must create a budget and measure ROI. Additionally, no organization should pursue tech investments unless it has the resources in place to follow through and close sales. 

Target the audience.

Many marketing campaigns are intended to generate leads, but some estimates claim that up to 85% of marketing expenditures can be wasted because leads are never fully developed or are off target to begin with.

Garnering quality leads starts with clearly identifying prospects and then targeting the message. The more detailed an organization is in identifying its audience, the more successful it will be in landing good leads. A home improvement store, for example, might be better off targeting recent buyers of homes that are 40 years old or older within a 20-mile radius of its retail location than targeting every homeowner in the area.

Coordinate marketing efforts with sales objectives.

Optimizing a lead generation program depends on ensuring a close alignment between marketing and sales. It’s crucial that marketing determine what the sales force needs before embarking on any campaign designed to produce leads.

Just as no company wants its reps chasing leads that have a low probability of resulting in a sale, a company must also make certain that sales reps aggressively follow up on the qualified leads that result from marketing efforts.

Develop a system.

A lead program must be supported by good organizational integration so that leads are systematically processed or successfully nurtured. This ensures that all leads are quickly routed to the appropriate sales resource.

Companies should develop and follow a systematic contact management process to identify where prospects come from, how often they should be contacted, and in which ways. A lead tracking system should also be used to track conversion rates. Conversion, or close rates, can provide insights to both the quality and profitability of leads.

Not all respondents are sales-ready, and companies may need a different process for nurturing inquiries until they become qualified leads. This is particularly true when casting a wider net for prospects, which typically requires a long-term sales mindset. Having a good system in place will allow an organization to cultivate every inquiry and ensure that no one falls through the cracks, no matter what their buyer readiness state might be.

Collect adequate information to differentiate prospects.

All leads are not alike and companies should gather enough information to qualify and classify prospects. Organizations may even create different lead categories and determine specific processes for responding to each category. Some leads will go straight to the sales force, while others may be forwarded to a customer support team. Use the information to prioritize and tailor responses.