Confession: I wish I could flash a warning across every marketer’s screen the moment their computer powers up.
What is a universal lead definition (ULD)?
It defines what a qualified sales lead is to everyone in your organization.
A universal lead definition:
- Fits the profile of your ideal customer
- Confirms the buyer has been qualified as sales-ready
- Spells out the responsibilities and accountabilities of sales and marketing
- Makes marketing and sales more efficient
Still, most of the companies I meet with do not have a ULD. An astounding 61% of B2B marketers admit to sending “leads” directly to sales without qualification, according to the MarketingSherpa B2B Marketing Benchmark Report.
Are these truly leads? Not really. Anyone who expresses interest in what you sell is an inquiry, not a lead. Experience has taught me that only 5% to 15% of inquiries are ready to speak to sales.
However, as many as 80% of inquiries will be ready to speak with sales in the future. If you send leads too soon, sales will discard them, so you must nurture them until they fit your ULD.
What does a universal lead definition look like?
A ULD doesn’t need to be complex. It needs to be clear.
For example, one client (an $80 billion IT management organization) used the following approach. An inquiry became a qualified lead when it met the following criteria:
- Fits the ideal customer profile and target account demographics
- Has interest from the right decision-maker contact
- Has a clear problem or defined need that we can solve
- Plans to evaluate the solution in three months
- Plans to make a purchase decision in six months or less
- Is ready to speak or meet with a sales rep within two weeks
This definition was applied to every lead regardless of where it came from, whether teleprospecting, inbound marketing, webinars, or elsewhere.
By creating their universal lead definition and qualifying leads against it, this company increased sales-ready leads by 375% and sales-accepted opportunities by 200%, without an increase in budget.
Why did it work? Because the ULD set the standard for determining which leads should receive the highest priority and optimizing the sales process.
Using a ULD for lead qualification
By having a clear understanding of what the word “lead” means, sales and marketing teams can solve problems such as:
- Sales leads not being qualified or prioritized
- Leads not being nurtured
- Sales rejecting or not following up on leads
- No clear lead routing process
How to create a universal lead definition
So now that you know what a ULD looks like, here’s how you create one.
Step 1: Bring sales and marketing together for a meeting
Use a leader or facilitator whom both groups respect. The premise is that you’re in this together.
Step 2: Ask sales this key question
“For us to be 100% certain that when we send you a lead, you will act on it and provide feedback 100% of the time, what do you need to know? At what point do you consider a lead qualified?”
More on lead qualification and scoring for better leads.
Step 3: Listen to sales input and make sure everyone speaks up
Every salesperson must participate. And give input. Silent dissent kills adoption later.
Step 4: Clarify and continue
Write a summary of your meeting, including your initial definition, and schedule another meeting to clarify what was said. Make sure everyone is satisfied; strong consensus is critical.
Step 5: Publish the ULD everywhere
Your universal lead definition needs to be understood by everyone involved with lead generation. If they are not clear on the target, the system breaks down.
Step 6: Close the loop on sales qualified leads
Use regular huddles (face-to-face or voice-to-voice meetings). Don’t count on software to close the loop for you. Sales and marketing should meet biweekly to ensure the lead definition is still accurate.
Ask questions like: “Was X a lead? Did they enter the sales process? Why or why not? What else would you like to have known about this lead? What else can we improve? What should we stop doing? What should we start doing?” Is there any follow-up needed?
It doesn’t take a lot of time or effort to heed my warning, but I promise you, the rewards of doing so (more pipeline, more sales, and better ROI) will make it more than worthwhile.
Read Introduction to Lead Management.
No hype. No noise. Clarity your team can actually use.