18 August 2020
What is Lead Distribution: Benefits and How it works
What is lead distribution? We discuss how it can benefit your business, and how it works.
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If like other businesses, you are taking up to 42 hours to respond to your leads, you need to re-examine your processes. Urgently.
Leads are more likely to convert if you respond to them within the first minute after they contact your business. Many businesses invest heavily in generating more leads but lack the tools needed to respond quickly to the influx of leads.
This is where lead distribution software comes in. It uses lead routing rules to automatically distribute your leads to the right sales rep.
In this article, we’ll delve deeper into what lead distribution software are and if they are the right solution to your business problems.
What is lead distribution?
Sometimes called lead allocation, it is the process in which leads are matched with sales reps who are most likely to close the deal. Lead distribution software aids this process by distributing leads based on lead routing rules (we’ll get to these in a bit 😉).
What are lead distribution software?
How does it work?
As its name suggests, it distributes your leads to your sales reps. This is a process known as lead routing.
Lead routing can be done in many different ways. Users of lead distribution software will first need to set predefined rules.
The software then uses these rules to automatically distribute leads.
Users can set rules based on a variety of factors! These include sales reps’ availability, geographic location, native language, and even the size of the companies they work for.
For example, to reduce lead response time, a user can set a rule which tells the software to distribute the lead to an available sales rep. Leads will no longer have to wait a long time to get in touch with the company.
Or a user based in New York City may also set a rule for leads from Brazil to be assigned to a Portuguese-speaking sales rep based in Brazil. This way, the particular sales rep who is more familiar with Brazilian consumer behavior and local market needs can better serve the lead.
Regardless of the rule you use, lead routing serves one purpose. And that is to improve the experience your lead has with your company.
Let’s delve deeper into what types of lead routing rules are out there!
Some types of lead routing rules
A lead routing rule is basically a criterion (or set of criteria) in which a business decides which lead should be assigned to which sales rep.
There are two main types of routing rules. Push-based and pull-based.
Of the two, only push-based lead routing is automatic. As its name implies, leads are ‘pushed’ to your sales reps automatically by the lead distribution software.
On the contrary, pull-based distribution relies on your sales reps to pick the lead that they will interact with. In this case, leads are ‘pulled’ toward your business.
But since we are talking about lead distribution software, we will not be exploring pull-based routing rules in this guide 😗
1. Round robin
This method of lead routing uses a round robin algorithm to distribute leads based on a sales reps’ availability.
Leads will not get sent to sales reps who are currently engaged in another call or busy. This reduces lead response time, by bouncing the caller to the next available rep.
Furthermore, once a lead has ended a call with a lead, he or she will be shifted down the line to allow sales reps who have not interacted with leads to answer the next phone call.
This way, not only will your leads not have to wait too long but you ensure that each sales reps will not be overwhelmed with calls.
2. Top Producer
Push-based lead routing prioritizes high-performing leads when distributing leads to your sales reps.
Such sales reps are expected to be able to generate more leads and drive more conversions. However, these sales reps tend to end up being overwhelmed with leads.
As a result, the customer experience of your leads may decrease over time as your better performing leads become increasingly fatigued.
3. Country of lead
If you have multiple sales reps across different parts of the world, you can distribute your leads to sales reps in the same country as them.
This avoids the timezone issue so your sales reps will not have to stay up till ungodly hours to work according to a different timezone.
4. Company size
In an exclusive interview with Salesforce Team Lead Edouard Obin, he said that sales should be contextual.
Selling to enterprise-level companies is different from selling to a middle-market company.
For instance, larger companies will be more careful when buying and implementing new software. This is due to the more far-reaching effects that come with changes to the type of software they use.
Companies of various sizes require different sales tactics in order to successfully sell your product or service to them.
This lead routing rule allows you to categorize your sales reps according to their specialization in terms of dealing with potential clients of specific sizes. Leads will then be distributed accordingly.
5. Other commonly used rules
The beauty of rule-based lead routing is that there are many types of rules for you to use.
Apart from the aforementioned criteria, you can also distribute leads based on the language they speak, sales reps’ expertise, and even business functions.
We’ve prepared a list of commonly used lead routing rules. Check it out to learn more about how other companies have used this feature!
Other lead distribution software features
1. Feedback capture
This feature enables sales leaders to track the activity between leads and sales reps. It requires the reps to update about the lead status such as the sales progress and the purchase ability.
Generally, the lead distribution software will prompt sales reps to fill up a form to collect information on their interaction with the lead.
Depending on the software you use, this information can include the status of the deal, duration of the call, campaign source, and transcription notes.
This information is used to update sales leaders on the progress of the sales team. The information collected can also be used to provide insights into the effectiveness of their sales strategies.
In the case of Novocall Conversations, sales leaders can access the information by clicking on the ‘view’ button as shown in the screenshot above.
This way, the sales manager can easily track the progress of the sales team.
Lead information is typically stored automatically in your CRM tool. So this makes lead tracking a lot easier as well!
2. Reporting and analytics
Businesses need to use data to gain insight into their customers and improve their performance.
Many lead distribution software come equipped with a built-in reporting and analytics tool.
This will deliver important information on a variety of metrics. This includes the number of leads each sales rep interacts with, sales progress on how many successful conversions, and the average response time.
You should look for software that enables you to integrate with your existing CRM system. This will help you simplify the workload as you log all the details about the leads to help you track and qualify them.
CRM system enables you to directly send all the data from web forms to your sales reps. Using this comprehensive information, your leads can make more informed decisions before taking any action.
Benefits of using lead distribution software
Assign leads easily
Unlike pull-based lead distribution, lead distribution software utilize push-based lead routing rules.
This automates the entire lead distribution process and frees up some time for your sales teams so that they can focus on other tasks as well.
More efficient sales process
Lead distribution simplifies your entire sales process. Sales reps no longer need to manually run through a long list of leads to identify the right leads to close deals.
Because the leads are distributed based on specific criteria to right sales reps, the odds of a deal being closed is higher. For example, a sales rep with experience selling to marketers is more likely to close more deals because the software distributes leads who are marketers to them.
Reduced lead response time
Using a variety of lead routing rules, you reduce lead response time.
The availability-based lead routing rule distributes leads based on your sales reps’ availability. This, in turn, is based on their personal schedules. With this rule, your leads don’t have to wait as long before getting in touch with your sales reps.
If the software comes with round robin distribution features, leads will be distributed to the next sales rep in line if the one first in line has already finished interacting with a lead.
This created a systematic process in which your business will never miss an opportunity to interact with its leads.
Improved customer experience
Lead distribution software also improves the customer experience as your leads are assigned to the sales rep best-suited to handle the deal. This is assured by using pre-set rules to determine which sales rep handles which particular type of lead profile.
Some software also come with a notification feature to inform the sales team when there is a new lead coming in.
This feature provides detailed information about the leads and this will help the sales reps better prepare for the conversation.
Analyze and track performance
You can track leads and group them based on their funnel stages coming from different marketing campaign sources. This part of the process can be simplified by integrating with the CRM system to track and store detailed information.
This feature enables the sales manager to monitor the leads and sales reps’ journeys during the whole process. Later they can analyze the data to see how the sales reps’ performance in handling the calls.
In-depth information about your leads will help your sales team deliver the right services to them which will increase the conversion rate.
We hope that this gives you a clearer understanding of what a lead distribution software does and how can help your businesses.
After discussing the importance and benefits of lead distribution software, you might want to consider giving it a try!
But as with all other types of software out there, there are many options in the market with the same basic features. And this makes the purchase decision hard. Trust us, we know.
Fret not. We’ve prepared a list of the top 20 lead distribution software just for you. We discuss the basic features of each product and provide ratings from several tech review sites. We hope that this can help you make a more informed purchase decision.
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