The idea of this article is to really get straight to the point about what leads are, what the 3 types of leads are and what is the best strategy to generate each of them.
In order not to run the cart over the oxen, I want to ask two questions first:
- Do you know the best way to triple your sales?
- When does your sales process need to be perfect?
If the answer to the first question was to triple your sales team, it’s wrong. If your answer to both questions does not have the word Lead as a key term, it is very likely that you are also wrong.
Jedi sales master Aaron Ross shows in his most famous book that the best way to triple your sales is to triple your qualified leads. If you still don’t speak English (I wrote this article that points out 5 reasons to master it), you can download the materials from Resultados Digitais for free with the translation of the second book in the Predictable Revenue series.
On the second question (When does your sales process need to be perfect?) and being very honest with you, I believe that striving for perfection is the same as striving for stress and frustration. And this is also true of the sales process. If you’re not generating a large enough amount of Leads (look at the key term again) for your SDRs to hit the target, your sales process will have to be perfect in all the following phases.
But we know that in sales what we have is a funnel that, at each stage, concentrates a smaller amount of flow of leads. Do you agree that perfection does not exist?
You will say: – “Okay, Lucas. I understand you mean leads are important. But now, what is the definition of leads?”
So, settle back in your chair, get a pen and paper, we’ll know what leads are.
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- What are Leads?
- The Three Types of Leads
What are Leads?
Imagine the number of people (or companies) that can fit the profile of purchasing your product or service but you do not have any information beyond this suspicion of framing. So, these are Suspects.
Leads, on the other hand, are formed when the suspect makes some information available to your company: whether this information is via a card exchange at an event, a referral from someone or an entry via subscription on your corporate blog.
A suspect makes available information because he has some interest in what he has to offer, which could be receiving more materials and articles or keeping in touch with a representative of his team. This means that he is interested in its solution because he identifies with the problems it solves.
The Lead becomes a business possibility for the company when it provides information for future contact with it. So, remember that time you made your email available in exchange for material? Yes, you became a Lead!
It’s not my idea to talk about Lead qualification in this article but if you are looking for so I suggest starting with the next step after a Suspect becomes a Lead, known for Qualification Profile. If that’s what you’re looking for I suggest the following text.
Now, do you know that there are different types of Leads? Yes, they are Seeds, Nets and Spears.
The Three Types of Leads
Now that you know what Leads are, let’s talk about how they are categorized. What led to the segmentation into three types of Lead is the fact that each one arises from a different source. Which in turn will lead to different metrics, from conversion and closing rates to the strategy to nurture them into the sales funnel.
For you to understand better, let’s go through each one of them explaining their differences.
You may know that popular saying that everyone reaps what they sow. It is very similar to the concept of Seed (seed). If your company is providing a service or selling a product worthy of being referred by a customer, then when referring it to a Suspect, the customer ends up generating a Seed.
The seed comes about through word-of-mouth marketing and relationships. A seed also comes through an up-sell or cross-sell.
The first big advantage comes from the fact that Seed-type Leads have a tendency to close faster without necessarily having to go through a salesperson, education through material or cadence flow. He trusts his friend, his client, who has shown the results obtained with his solution.
The great difficulty, if not impossibility, is to create this generation in an organic way, in addition to the possibility that Seed does not fit with its solution. The best strategy for generating Seed-type leads is to build an effective Customer Success team.
The best analogy to understand Net-type Leads is to think of a fishing net thrown into the open sea during a free fishing period. In marketing and lead generation, we call this network the Inbound model or a second strategy called Growth Hacking.
The advantage of generating Net-type Leads is due to the high volume and scalability. However, this large net does not only bring fish (Lead with a purchase profile), but also boots, which leads to a low conversion rate.
Spears-type leads, as the translation itself says, are obtained as if you were using a spear. You look for the right target (Lead) to hit at the right time. Searching for this, both what business we need to prospect and knowing if there is cash available, makes the prospecting process more assertive.
You now have greater control over the team, knowing how much each one can deliver on a monthly basis, offering greater predictability even for closing new deals. In addition to this advantage of predictable results, one can focus on reaching larger accounts that will give more return. Just like King Leonidas tries to hit Xerxes in movie 300.
His helmet was suffocating, narrowing his vision. And he should see it now. His shield was heavy, impairing his balance. And your target is far away.
In addition to quick feedback on whether the strategy is working or not, this is a quick sales process. With just a few weeks, it is already possible to know if this process is working with good results or if it is time to change it to seek improvements.
The best strategy to generate Spears-type leads is through the Outbound process.
You’ve come this far and now you know more than just what Leads are, don’t you? Now I want you to think of one person, just one person, who can take advantage of this article.
So now share it with her and make the world sell more and better.