What is Lead Enrichment and Why is it Important for your Sales Strategy?
July 26, 2021
Lead enrichment means acquiring and organizing supporting data for the leads in your database to ensure that they are highly current and accurate, utilizing all available data.
Generally, lead enrichment refers to updating information such as business size, industry, job title, phone number, and email address. However, it may also refer to any data included in a record to aid your sales team with leads outreach and qualification.
There are two techniques to accomplish lead enrichment: it can be done manually when someone on your team is conducting research and updates the record on your system or automatically by third-party software when you get a new lead. The technique to use is determined by your industry, the sort of information you want, your budget, and each rep’s capacity. To guarantee that information is up-to-date and correct, many sales organizations use a combination of manual effort and third-party data.
Suppose your sales staff is spending too much time manually filling out information on contact records such as industry, firm size, and firmographic data. In that case, you should consider adopting a third-party solution. This frees up your sales staff to focus on outreach rather than investigating and qualifying prospects.
Lead enrichment improves the efficiency of your salespeople. When a salesperson understands what their tech stack looks like or what that person’s position is from the start, they can provide much more personalized and useful outreach, giving prospects a better experience as well.
The Significance of Lead Enrichment for Your Sales Strategy
Lead enrichment helps your sales team to verify that their data is high quality, full, and up to date. These three requirements show that your data is accurate, which is critical for businesses. According to research, the average lead-to-customer conversion rate is 143:1. Companies that use best-in-class data management techniques, on the other hand, only need 68 leads to land a new customer. What this means is that data accuracy can boost your closure rates by 152%.
Certain lead enrichment methods can achieve accuracy, which is usually difficult. The following are the value of lead enrichment:
This is divided into lead scoring and segmentation. Lead scoring is the process of assigning value to an incoming lead based on the likelihood of conversion.
Leads usually fall into hot, warm, and cold. A hot lead means it satisfies all of the criteria for conversion – there is a budget, a purchasing authority figure, a need, and a deadline. Warm leads generally have one criterion lacking, whereas cold leads have several. Lead scoring assists sales teams in determining which leads should be prioritized.
There are a variety of measures that may be used to score leads. You may score leads by how much they fit your ideal customer profile and through engagement and user activity.
Leads with good scores and more likely to convert will be contacted sooner than those with lower scores (low chances of conversion), helping your sales staff to focus their time and resources better. Consider a simplified way to score leads that take into account regions, web traffic, and global ranking. Web traffic, through site visits, shows the company’s performance. Comparing geographical locations shows if the firm is local or global. Furthermore, their global score indicates how they measure up in their industry when it comes to site quality (visits and engagement).
If a company has a higher global rank and broad geographical distribution, it will be prioritized when contacting leads. Once you have a solid lead scoring system, you can now work on improving your process.
Lead segmentation is the process of categorizing leads into various groups to distinguish prospects. This will influence how your sales staff communicates with them and their content for engagement. For instance, this sorting can be done by industry. If you’re offering a team management product and you’re getting leads from various industries. You may develop a personalized sales pitch and demo for prospects with distinct use cases for your service or product if you have segmented the leads by industry. Lead enrichment allows you to collect data that allows you to customize how you interact with various leads.
After lead scoring and segmentation, the next phase is lead routing. This is where you determine the sales team to get a particular lead. This process is routing. Lead routing can be done by industry, headquarters location, or size of the firm. This will be determined by your company’s preferred market strategy and the structure of your sales staff. Leads will be automatically forwarded to the proper team by enriching contact information with company size.
Lead nurturing and the sales process are the basic aspects of lead conversion. After lead segmentation and routing, the sales team can start the sales process or begin nurturing.
Lead enrichment benefits your sales process in many ways. It ensures that sales teams get all of the information they need to start working on a lead, freeing up their time to focus on their strengths. Now, they will no longer have to frantically look for people’s contact details or other information they’ll need to close a deal.
Lead enrichment also allows teams to prioritize leads based on their likelihood of becoming customers. The purpose is that it guarantees they are maximizing their time and not pursuing prospects who will end up wasting time and resources without converting.
Ensures that leads are directed to the appropriate team or salesperson. When leads are routed correctly, it not only saves time for the teams but also guarantees that they are handled by the person with the most expertise and understanding of that particular prospect.
Provision of information about each prospect’s wants and pain areas. This enables your sales staff to reach out to customers with tailored, timely, and relevant communications, increasing engagement. The sales process becomes more productive when you can give value to your prospects and convey it properly.
When a lead is not ready for contact by the sales team, nurturing is an option to consider. Lead nurturing is the practice of developing meaningful relationships with prospects as they progress through the sales funnel. You may nurture leads by providing answers to questions, dispelling their fears, and clearly demonstrating the value you can provide for them by developing tailored communication initiatives.
A firm interested in marketing its payment solution to eCommerce sites is an excellent illustration of this. The payment firm may adapt their content efforts to make every touchpoint relevant to them by understanding changes in the site’s traffic and interaction. If more people visit the site and remain longer, the website likely has high conversion. In this instance, the payment firm may be able to offer a better price due to the huge volume of conversions.
Instead, if the eCommerce site’s traffic from different countries suddenly increases, the payment solution may offer low rates for payments originating in those countries.
Collecting data for lead enrichment
The idea of manually sifting through hundreds or thousands of data points, depending on the size of your collection, may turn you away, and understandably so. Therefore, you should consider adopting the following data enrichment tools for data cleaning and management:
We cannot overemphasize the importance of data, and the storage location is just as important. CRM software is the best option for managing something that important to your business. Custom properties, projects, and activities, and online forms for data collection are just a few of the contact management features available in a CRM tool. You will also get a slew of sales-specific features, such as live chat, email scheduling and monitoring, and a centralized dashboard.
The CRM not only promotes data gathering and enrichment but also allows your team to invest in these processes as a unit rather than as disjointed teams or salespeople working in silos.
Customer Data Platform (CDP)
A customer data platform (CDP) collects and organizes customer information from all of your company’s various sources. A CDP can be a worthwhile investment if your customer data is used by several applications, systems, and teams. CDPs assist your organization avoid utilizing siloed (and probably incorrect) data by collecting and structuring real-time data into unique, centralized customer profiles.
CDPs and CRMs are comparable in that they both collect customer data and add value to your business, but that’s where the similarities end. A CRM solely monitors a customer’s deliberate interactions with a firm by human entry. In contrast, a CDP automatically generates unified customer profiles using data acquired across a range of online and offline channels.
Your sales effort would fall flat if you don’t have reliable, representative data. Keep your prospects and customers interested and engaged by having solid and reliable data through lead enrichment data.