The faster you respond to a lead, the more likely you’ll qualify and process that lead. The question is, how fast should you respond to them? And if you’re not at this speed, how can you improve your lead response time (also speed to lead)?
Let’s find the answers in this article.
What is Lead Response?
Lead response time is the average time it takes for a sales rep to follow up with a lead after they’ve been contacted by the lead from inbound or outbound channels.
Lead Response Management Process
Having a clearly defined lead response management process is crucial, especially when you use several methods and channels to collect leads. With this process, you can handle all leads effectively, from inquiries to closing deals, and optimize all opportunities you have to grow revenue.
When developing this process, you need to ensure sales and marketing teams are on the same page. This way, marketing can be clear about what a good lead looks like and how leads are qualified before handling them to sales. Sales can know exactly who the most potential leads are to prioritize and what actions they need to take to encourage those prospects at every sales cycle stage.
Importance of Sales Lead Response Time
In a competitive world, the lead response needs to be more than fast — it needs to be almost immediate. If you don’t talk to a lead in five minutes, chances are, the lead will leave you and switch to your competitor. They’ll go cold more quickly than you think.
But that’s not the only reason you need to focus on responding promptly to leads. Here are some more benefits of fast lead response time you should know:
- Make leads feel important and happy. When they’re satisfied with your communication, they’ll be more likely to be interested in discovering more about your product or service. A lead then becomes a high potential customer.
- Gain more new leads. When a lead feels impressed with your quick response, they may talk about you with their friends or share positive words about your business on social media.
How to Calculate Lead Response Time
Your lead response time can be calculated by taking the total time between leads assigned to sales reps and the first response for all of them and dividing that by the total number of leads responded to.
Specifically, you’ll need to take two steps to find lead response time:
Step 1: (Time/date of new lead – time/date of response) = the number of min/hrs/days to respond
Step 2: Sum of the total amount of time to respond for all leads / total leads = Average lead response time
What is a Good Lead Response Time?
Here’s the truth: there is no standard or the perfect number for lead response time. Even though you’ll find many benchmarks on this metric, remember that lead response time will depend on your business size, your industry, the types of customers you’re targeting, and even the types of questions your leads want you to answer.
For example, if a lead asks you about your product feature, you can respond to them in under 5 minutes. That said, if the question is about customizing your product or service to their specific requirements, you might need more time to advise your manager and other departments to have an accurate answer before getting back to them.
How to Respond to a Sales Lead and Improve Lead Response
There are some ways you can do to reduce lead response time.
First, make sure your team understands the importance of fast response times. Based on your sales activity tracking and historical data about sales lead qualification, establish a benchmark for how quickly your rep should follow up on leads. From there, set goals to shorten this timeframe.
Second, implement email automation. If you haven’t applied this technique yet, it’s time to try it with Revenue Grid’s Sales Sequences.
Revenue Grid’s Sales Sequences allow you to create email responses and set them to be sent automatically to new leads. Think about when a visitor contacts you for a product demo, asks a question about free trials, or requests an invoice — these inquiries can be auto-responded with Sales Sequences.
The best practice is to take advantage of this powerful tool to automate common questions. By doing that, you can ensure that all leads will receive the information they want at the right time.