What is Speed-to-Lead and Why is it so important?

Are you having trouble closing sales? Do you not get the close rates that you desire? Sales professionals often say that they aren't getting the right leads. But the real problem is speed-to-lead.

In a second, we'll discuss what lead response management is and how to address it. But before we start, let me ask you to complete a short exercise. Fill out the inbound lead form on your company website or create a chatbot to trigger your sales team to call a prospect. You can use a fake name, but give them real contact information that they won't be able to identify as yours. Next, note the date your form was submitted. This information will be used to map out your next steps. You should start the process now.

Are you ready to go? Great!

What is Speed-to-Lead?

Speed-to-lead refers to the time it takes for new leads to reach your business from the moment they contact you. This is why you created your own form before starting. This will allow you to measure the time it takes for a sales representative to reach out to you.

Many business leaders believe their speed to lead times are perfect. Your team seems to be following through quickly, even though you have a process in place. The problem is that response times are often slower than stakeholders believe. Unless you have a sophisticated lead generation system and tracking system, it's difficult to know how yours is. This is your chance to get some useful data.

What is the Importance of Speed-to-Lead?

It is intuitively obvious that the longer it takes for a prospect to contact you, the higher the likelihood that they will be cold. You can also make sure your marketing team is delivering to your sales department as much as possible by fixing any leaks in your pipeline. However, speed-to-lead goes beyond this.

Speed-to-lead provides service on-demand

The way people shop and make decisions has been rapidly changing since the Internet gained popularity. Nowhere is this more self-evident than within the B2B market. According to Forrester Research, more than 55 percent of buyers prefer to self-educate rather than receive information from a salesperson. It’s the “new normal” brought about by the large amounts of material they can now find online, thanks to your SEO and content marketing efforts.

It is likely that you have two distinct types of lead generation forms on your website: offers of information and offers to connect with someone. Offers of information, sometimes called lead generation magnets, including whitepapers and guides that educate your prospect. At this stage, prospects are considered marketing qualified leads.

According to FocusVision research, the average B2B buyer consumes 13 pieces of content before they’re ready to convert. So, when a lead finally takes the initiative to engage in live chat or complete a lead generation form, and it’s clear you’ll be talking to them, they’re taking this step after completing research. They’re showing you that they’re ready to talk to someone now and move forward with the lead qualification process.

In both these cases, the lead is choosing the service they want. To meet their expectations, you must deliver what they want when they want it. Which is now.

Speed-to-lead increases the chances of first contact

Prospects don't usually sign up for your brand or purchase the first time they interact with it. This is a typical customer journey:

1. The customer recognizes that they have a problem, and resolves to fix it.
2. The customer starts looking for vendors that can solve his problem.
3. The customer makes a list of possible solution providers.
4. The customer chooses which provider to work with from the shortlist.

Prospects won't contact you until the third stage of the sales process when they are creating a shortlist and deciding on the best one. However, prospects are also reaching out to competitors at this stage. People tend to choose the first option presented to them, according to UC Berkeley researchers and Harvard. In some studies, up to two-thirds of consumers choose the option they are most comfortable with. Similar results can be seen in marketing. According to Search Engine Journal, 25 percent of Google searches result in users choosing the first option. It's a huge deal to be the first vendor. This allows you to reach more customers and close more sales.

Customer confidence is built on speed-to-lead

I frequently speak about the importance of building trust and the role branding plays. Your brand should have customer-centric values. This includes prompt responses. It shows the customer you value their time and appreciate their prompt responses. This creates an implicit promise that you will be available as soon as possible in the future. Slow responses can be a sign of doubt. You shouldn't expect them to call you to make a sale. Do not leave them in suspense. Give them the best service possible at every opportunity.

The likelihood of customers being available increases when there is speed-to-lead

Because they are available, your customer is contacting you right now. They might be taking care of their customers in an hour. They might return home with their families in a few hours. They might be busy tomorrow with meetings. You're familiar with the process. You can respond quickly if they are actively thinking about your brand, and focused on solving their problem.

What is a Good Speed-to-Lead?

This will likely have been less than five minutes since your lead generation form was submitted. If the trends identified by Harvard continue, approximately 26 percent will already have received a response from their sales department. 37 percent of respondents will receive a response within an hour. However, the average response time will take 42 hours.

However, it is important to remember that speed doesn't always mean better. In the past, businesses were expected to respond in five minutes. Newer research by the Telfer School of Management, University of Ottawa, has shown that closing deals are more likely when prospects are contacted within ten to sixty minutes of receiving a lead. The 30-minute mark is when success rates are highest. However, if you have to choose between an immediate or delayed call, it is better to get in touch immediately.

It's also worth noting that you shouldn’t expect to close the deal on the first call. While there are success stories that end this way, it takes an average of 5.7 follow-ups to secure a positive outcome in the B2B sector.

How to Improve Your Lead Response Time

As nearly two-thirds of speed-to-lead tests fail, lead response time should be a major focus. Here are some things you can do to improve your speed-to-lead tests.

Effectively route web leads

Automate as many tasks as possible to ensure that hot leads reach the right person at the right time. Avoid having intermediaries or gatekeepers pass on leads. Look for an alternative if your CRM or lead management platform does not make this simple or can't sort information such as industry, location, and company size before assigning a lead.

Templates for leverage

You can create a variety of email and text message templates, as well as sales scripts, to meet different situations. Email responses should be customizable and tailored easily in order to speed up your response time without compromising personalization.

Identify a follow-up flow

Your team should have a plan. It can take six follow-ups before you can achieve a positive outcome. You might want to send an email immediately, send a text message within 24 hours, and then call back at 48. Or use email automation to keep your leads warm. You will need to adjust the flow and follow-up process depending on your industry, company, and product. Once you have your flow, automate it to the point that your reps receive the leads at the right times.

Take stock of your results

Keep track of details such as your average lead response times, number of interactions, and success rates, and share these with your sales reps.

Get the Help of a Specialist

Although speed-to-lead can be a significant factor in your success as a salesperson, it is not the only thing that matters. It's also not easy to fix, even if you are aware of slow responses, which could hurt your business growth. My background as a digital marketing specialist and a business professional has allowed me to help many businesses, from startups to Fortune 100 companies, improve their processes and achieve new heights. I would love to assist your business. Contact me to receive a free consultation if you are looking to increase sales and build a stronger business.

You can also read this article on my website, Speed-to-Lead: What is it and Why is it So Important?

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