Every lead is a potential customer.
But it won’t become an actual customer if you don’t know what to do with them.
The truth is that most businesses focus on investing in lead generation rather than lead distribution.
However, lead distribution is just as crucial in generating revenue. In this article, you will learn what lead distribution is and how it works.
What is Lead Distribution?
Lead distribution is the process of assigning incoming leads to the most suitable sales representatives based on certain criteria.
It involves evaluating the unique characteristics and needs of each lead and matching them with a sales rep whose skills and experience align best with those requirements.
This ensures that leads are handled by reps who are most capable of addressing their concerns and maximizing conversion potential.
By assigning leads to the right person, companies can improve their chances of closing deals effectively.
Leads are assigned to sales reps based on specific criteria to ensure the best fit for closing deals.
The most common criteria for assigning leads to sales reps include:
- Experience and Expertise: Match leads with reps who have the most experience in the lead industry. For example, assign a tech lead to a rep who knows tech solutions well.
- Lead Size and Value: Larger, high-value leads go to seasoned reps with a history of closing big deals.
- Geographic Location: Assign leads to reps based on geographic proximity or region to facilitate easier communication and meetings if needed.
- Product Knowledge: Leads interested in specific products are routed to reps who specialize or have extensive knowledge of those offerings.
- Lead Source or Channel: Assign leads based on the source, like those from webinars or events to reps with the highest success rate with similar channels.
How Does Lead Distribution Work?
Lead distribution involves assigning qualified leads to sales representatives using information gathered during the lead capture and lead qualification processes.
This assignment is based on criteria established by the company.
There are two primary methods of lead distribution:
- Manual Lead Distribution (Pull-Based).
In this approach, leads are placed into a sales pool, and sales reps can select leads from this pool at their convenience. This method allows reps to choose leads that align with their availability and preferences, but it can be less efficient since it relies on reps actively choosing leads.
2. Automatic Lead Distribution (Push-Based).
Here, leads are automatically assigned to sales reps based on predefined criteria such as lead characteristics, rep expertise, or territory. This method ensures that leads are distributed quickly and efficiently, with prospect details being delivered directly into a sales rep’s queue. This approach minimizes delay and ensures leads are routed to the most suitable rep for immediate follow-up.
However, these are not the only strategies to distribute leads. Other common lead distribution methods include:
- Group-Based Distribution: Leads are distributed based on groups. This method is convenient for sales teams that are already divided into groups based on varying criteria like performance or function.
- Round-Robin Distribution: Leads are assigned in a fixed rotation among sales reps. This method ensures an equal distribution of leads and prevents overloading any single rep.
- Weighted Distribution: Leads are distributed based on criteria such as a rep’s performance, capacity, or seniority. For example, higher-performing reps may receive more or higher-value leads.
- Geographic Distribution: Leads are assigned based on geographic location, matching reps with leads in their designated territories to manage regional markets effectively.
- Skill-Based Distribution: Leads are matched with reps based on specific skills or product expertise. Reps with specialized knowledge are assigned leads that require their particular skill set.
- Priority-Based Distribution: Leads are prioritized and assigned based on their perceived potential value or likelihood of conversion. High-priority leads are given to more experienced or successful reps.
What is Manual Lead Distribution?
Manual (or Pull-Based) lead distribution is when a sales rep selects the leads they want to work with.
A sales rep typically has their own set of criteria filtered on their CRM or lead database, where they can check new leads and decide which ones to pursue.
Essentially, manual lead distribution enables sales reps to work on leads of their choice, which makes them very likely to convert.
This lead distribution strategy offers several benefits:
- Flexibility: Sales reps have the flexibility to choose leads based on their current workload, expertise, or personal preferences, allowing them to focus on opportunities they feel most confident in handling.
- Personalization: By allowing reps to select leads, they can tailor their approach to match their strengths and interests, potentially leading to more personalized and effective sales strategies.
- Control: Sales managers have more direct control over lead assignments, enabling them to make strategic decisions based on real-time insights and changing business needs.
- Targeted Focus: Reps can prioritize leads they believe have the highest potential, ensuring their efforts are concentrated on prospects most likely to convert.
- Adaptability: In situations where automated systems may not capture all the nuances of a lead’s potential or needs, manual distribution allows for human judgment and adjustment.
Overall, manual lead distribution allows a very nuanced and the most targeted lead conversion.
What is Automatic Lead Distribution?
Automatic (or Push-Based) lead distribution is when a lead is assigned to a sales rep automatically, typically using lead automation software.
Lead automation software normally uses selected conditions or round-robin features to distribute leads automatically.
With this lead distribution method, sales reps cannot choose the leads they’d like to work on manually.
While automatically distributing leads can save a lot of time and effort, it can lead to slightly less personalized and less nuanced lead conversion procedures.
Automatic lead distribution offers several benefits, including:
- Efficiency: Leads are assigned quickly and systematically. Automating lead distribution minimizes delays and ensures a timely response.
- Fairness: This method promotes equal distribution of leads among sales reps, preventing any single rep from being overwhelmed and ensuring a balanced workload across the team. There’s much less chance of competition among sales reps.
- Reduced Bias: By automating the process, the potential for human bias in lead selection is minimized. Automating lead distribution with software means the assignments are more objective.
- Scalability: Automatic systems can handle large volumes of leads effectively, making them suitable for businesses experiencing high growth or seasonal spikes in lead generation.
- Optimized Matching: Leads are matched to reps based on predefined criteria such as skills, experience, or geography, ensuring the best fit for each lead.
Do you need lead distribution software?
You do this if you want to save time, avoid human errors, and make the process smoother overall.
There are numerous benefits of employing lead distribution software, such as:
- automate data collection
- automated lead assignment to sales reps
- customizable filtering
- reporting and analytics.
Most CRM software has an automated lead distribution feature that simplifies the process and ensures that the right leads get to the right reps.
Optimize your lead distribution: 6 Tips to Follow
Pairing a sales rep with a particular lead is not random.
You must optimize your lead distribution procedure to make sure your lead generation efforts pay off with converted leads and increased revenue.
The best way to optimize your lead distribution is to establish a set of lead routing rules that the company sticks to when distributing leads to the sales reps.
Here are 6 useful tips for optimizing your lead distribution:
1 Tip: Qualify leads first.
Qualify leads before distributing them to your sales reps. Make sure to separate the general target audience from warm leads that are closest to converting.
2 Tip: Pair top performers with top leads.
Reward your top sales reps by assigning them the most high-priority leads.
3 Tip: Pair experience with urgency.
Assign time-sensitive leads to your most experienced sales reps.
4 Tip: Mind the availability.
Don’t assign too many leads to one sales rep, but set the conditions based on your sales reps’ availability.
5 Tip: Automate with lead distribution tools.
When scaling or during high-demand periods (for example, Black Friday deals), utilize and rely mostly on lead distribution software to manage large volumes of leads.
Tip 6: Gather data and track performance.
Measure the performance of your lead distribution by gathering metrics and data from your CRM.
Focus on lead tracking, especially in the early and late stages of lead prospecting. Pass all this data to your sales reps, including:
- Lead qualification score
- Response time
- Close rate
Key Takeaways
Lead distribution involves assigning incoming leads to the most suitable sales representatives.
The goal of lead distribution is to enhance the chances of successful conversions by matching leads with reps based on specific criteria.
Common methods of lead distribution include:
- manual distribution,
- round-robin,
- and automatic routing.
Lead distribution software and automation tools streamline the process by reducing response times, increasing efficiency, and minimizing human biases in lead assignment.
Leads can be distributed based on various criteria, including geographical location, industry, lead size, reps’ expertise, or product specialization.
Well-distributed lead happens when there’s an optimal fit between the sales rep and the lead.
Effective lead distribution improves sales productivity and customer satisfaction.
It makes sure that the leads are promptly and appropriately handled after they have been captured, generated, nurtured, and tracked.
Lead distribution is the step before lead conversion and has a direct impact on increased revenue.
