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An Introduction to Lead Response Management & Rapid Lead Response

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Pam Georgiana

Did you know that 53% of B2B companies spend over half of their annual marketing budget on lead generation? Did you also know that 79% of all marketing leads never convert into sales? Lack of lead response management is the main cause.

What is the point of spending more than half of your budget on generating leads if you ignore most of them? 

We discussed the cost of lost leads in a previous article. The average cost per lead (CPL) in 2020 was $198. So, not only have you lost that lead's current and future sales potential, but you've also thrown away $200. Multiply that by 79% of the total number of leads you've generated over the year, and the potential lost sales volume is staggering. That’s why lead response matters.

Today, let’s learn more about lead response management, and best practices for implementing this high-value strategy at your business. 

After all, lead response management is the critical next step after lead generation. It cannot be overlooked. It is essential to your success as a business and as a sales team. 

What is Lead Response Management?

If you want leads to convert, they need to be nurtured. In a nutshell, lead response management is your organization’s strategy for responding to leads. This looks different for every business, but lead response management typically involves a blend of automation technology and manual - yet scalable - initiatives. 

Lead response management helps add value and build trust, both of which are critical for sales success. 

The best lead response management is quick, efficient, scalable, and considerate. It should be focused on providing the right information, at the right time, on the right channel. 

Why Does Lead Response Management Matter?

Lead response management matters because it has a direct impact on your bottom line. Sales teams that nurture leads convert 50% more sales and cost an average of 33% less. Here’s some specific evidence. 

Maximizes ROI of ad spend

As we’ve said, lead generation is expensive. However, when you use a lead management system like Calldrip to respond to leads, you can learn which marketing or advertising channel led the prospect to you, giving you insights into what is working for your business. You can also analyze which campaign or channel generated the most qualified leads. Then, you can use that knowledge to adjust your budget to develop a better ROI. 

Helps close more deals

Timing is everything in lead response management. While the five-minute mark is vital, faster is even better. With an automated rapid lead response solution, your team can respond within one minute, which may improve your conversions by 391%.   

Prospects and customers feel valued

Gallup reported that 68% of B2B customers walk away from a purchase because they felt indifference or apathy from their salesperson. Customers want to feel like they are important to you. That feeling builds loyalty and engagement. Not only does prospect nurturing lead to more sales, but it can also drive larger purchases. Prospects who felt nurtured made 47% larger purchases than prospects who didn’t.

It’s difficult to implement a lead response management strategy without at least some supportive software. Learn what to look for in a technology solution next.

What to Look For in Lead Response Management Software

According to a Data Dwell study, 19% of sales teams do not have the resources to turn leads into buyers. That’s why lead response management software can be a game-changer for your sales team. A good software solution will: 

  • Decrease your lead response time
  • Increase your communication channel options
  • Improve the quality of your data
  • Integrate with other Sales Enablement and Conversational Sales tools to optimize your team’s resources and efforts

A good lead response software will enhance your team's personalized sales strategies. But it should never be at the expense of the customer. You must meet your prospects where they are and in the channel they want to hear from you. 

Why “Speed to Lead” Matters for Your Lead Response Strategy

A classic study on lead generation and response management published in 2007 is still true today. The study concluded that "Immediacy of response far overshadows both time of day and day of week in its effect on contact and qualification ratios." If that was true in 2007, before the advent of smartphones, SMS texting, and apps, it holds even more true today. Speed to lead is critical.

The key element of lead response management is time. Companies that respond to leads within 5 minutes are 100 times more likely to win the sale than those that respond within 30 minutes. In fact, if you don’t connect with a lead within the first hour, you’re unlikely to ever connect with them. 

If this sounds like a difficult hurdle to overcome, you need a rapid lead response solution like Calldrip to assist your team in making the most of your resources and getting the job done. 

Meeting Customers and Leads Where They Are

Speed is only one piece of the lead response management puzzle. The communication channel is another. 

Today, consumers are 4.5 times more likely to reply to a marketing text from a company than a marketing email. In addition, 62% of consumers prefer chat to voice messaging. SMS text marketing has grown recently because the channel has a remarkable 98% open rate. Even more importantly, 90% of sales leads would rather be texted instead of contacted by phone call. 

Your team's best lead response channel is the one your prospects choose. That's why a lead response management solution like Calldrip's multi-channel approach is valuable.

Lead response management is the essential second, third, fourth, and maybe fifth step in the sales process. Without it, most leads will turn cold and disappear within minutes. If your team struggles to keep up with responding to leads, Calldrip's all-in-one lead response software and sales enablement tool is just what you need. To learn more:

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