Every new lead is a sales opportunity.
And it’s up to you to decide what to do with it.
If you do your lead distribution right, you assign leads to the best-matching sales reps and increase the chances of closing deals.
In this article, you will learn about the most common lead distribution methods to boost your lead conversion rate.
Why do you need to distribute your leads?
Lead distribution is when you assign new leads to the most suitable sales reps.
Distributing your leads maximizes the chances of conversion and boosts sales because you pair the right lead with the right sales representative.
The goal of the lead distribution procedure is to make sure that leads are handled by reps who are most capable of addressing their concerns.
Essentially, lead distribution prevents the loss of sales opportunities.
If you want to make more sales and boost revenue, you need to distribute your leads.
It’s important to highlight the fact that lead distribution is not done randomly. There are lead distribution methods to follow to make sure the procedure is successful.
What are lead distribution methods?
Lead distribution methods are the processes used to allocate potential customer information, or “leads,” to sales representatives or teams within a business.
These methods are designed to efficiently route leads based on specific criteria such as geographic location, product interest, lead source, or sales rep availability.
Common methods include round-robin distribution, where leads are assigned in turn to each available rep; performance-based distribution, where leads are given to the highest-performing reps; and territory-based distribution, where leads are allocated based on predefined geographic or market territories.
The goal of lead distribution methods is to ensure that leads are handled promptly and that resources are used effectively, maximizing the chances of converting leads into customers.
The most important lead distribution methods and how they work
1. Manual Lead Distribution Method (Pull-Based).
The Manual Lead Distribution method, also known as Pull-Based, is a method where incoming leads are collected in a shared pool accessible to the sales team.
Sales representatives can select leads from this pool at their own discretion. This setup allows reps to pick leads that fit their schedules or align with their interests and strengths.
Pros of the manual lead distribution method:
- Flexibility: The manual lead distribution method allows sales reps to choose leads that align with their expertise, preferences, or schedules
- Better communication: The manual lead distribution method creates more personalized customer interactions since reps can better tailor their communication
- Autonomy: this autonomy can boost motivation and job satisfaction, as reps have control over their workload and can focus on leads they feel confident handling
- Smooth process: there’s less administrative burden since it requires less reliance on complex algorithms or systems, simplifying processes for smaller teams.
- Adaptability: This method allows for adaptability, enabling reps to quickly adjust their focus in response to changes in market conditions or personal workload
- Enhanced focus: The manual lead distribution method allows for agile responses to new sales opportunities as incoming leads are qualified
Cons of manual lead distribution method:
- Possible delays: The manual method may be less efficient than automatic lead distribution because it depends on reps actively engaging with the pool to choose leads, which may lead to delays.
- Possible missed opportunities: If reps don’t frequently check the pool, leads might sit unclaimed and become stale, reducing the chances of successful conversion.
- Requires discipline: This method requires discipline and motivation from sales reps to ensure that all leads are attended to in a timely manner.
Manual Lead Distribution method: 3 most common strategies
If you choose the manual lead distribution method, there are three common scenarios of how you distribute your leads to the sales reps.
- Cherry-pick: Incoming leads are dumped into the CRM, and sales reps cherry-pick the leads they want. The fastest rep wins the best leads.
- A blind pull system: this system allows sales reps to only see lead details after accepting the lead.
- Manual assignment: Directors of small sales teams may choose to assign each new lead as it enters the system manually.
2. Automatic Lead Distribution Method (Push-Based).
Automatic Lead Distribution, also known as Push-Based, is a method where incoming leads are automatically allocated to sales reps using predefined rules or criteria.
These criteria can include factors like lead characteristics, such as industry or company size, the expertise or specialization of the sales reps, or specific geographic territories.
This system ensures rapid and efficient distribution by directly placing lead details into the appropriate sales rep’s queue.
Pros of the Automatic Lead Distribution Method
- Minimized delays: it guarantees that each lead is promptly routed to the most suitable rep, allowing for immediate follow-up
- Enhanced conversions: this method enhances the likelihood of successful conversions by ensuring that leads are matched with sales reps best equipped to address their needs and inquiries
- Consistency: automatic lead distribution focuses on consistency and accountability, as it provides clear visibility into who is responsible for each lead
- Fewer errors: this method streamlines the lead management process, reducing the potential for human error that can occur with manual selection
- Fair distribution: since the lead allocation is based on set criteria, it ensures a fair and balanced distribution of leads among all available sales reps, helping to maintain fair workloads
- Optimized resources: this method can also optimize the use of sales resources, as reps can stay focused on engaging with leads rather than spending time choosing the
- Reporting and analytics: reporting and analytics are straightforward, as the automatic system can generate data on lead assignments and performance across the team. This data can provide insights into how effectively leads are being handled and help in refining distribution criteria to improve your lead distribution strategy.
Cons of the Automatic Lead Distribution Method
- Steep learning curve: Since automatic lead distribution relies on software, there can be a steep learning curve when setting up the tool in the beginning.
- Possible errors: the system can sometimes misallocate leads if the criteria are too rigid or outdated. It can potentially send leads to reps who are not ideally suited to address their specific needs.
- Lack of autonomy: sales reps might feel a lack of control or autonomy, as they have no input in selecting leads, which can impact their motivation and engagement.
- Over-reliance on technology: automatic lead distribution is prone to disruptions if there are system failures or errors
- Not optimal for personalized lead conversions: in cases where personalization and nuanced judgment are crucial for lead handling, an automated system might not capture the subtleties required.
Automatic Lead Distribution Method: the Most Common Strategies
- 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.
- 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.
- 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.
9 Most Common Lead Distribution Methods: Key Features
1. Round-Robin Distribution.
This method assigns leads in a fixed rotation among sales reps, ensuring equal distribution and preventing overload on any one individual.
It’s straightforward and ensures fairness but doesn’t account for differences in rep performance or lead complexity.
2. Group-Based Distribution.
Leads are distributed based on predefined groups, such as performance or function.
This method suits teams already organized into groups, allowing for tailored handling based on team specialties or goals. It enables strategic allocation but can require clear group definitions.
3. Weighted Distribution.
This approach allocates leads based on criteria like rep performance, capacity, or seniority. Higher-performing reps may receive more or higher-value leads, balancing skill with opportunity.
It can optimize lead handling but may inadvertently demotivate lower-performing reps.
4. Geographic Distribution.
Leads are assigned based on geographic location, matching reps with leads in their designated territories.
This method is effective for managing regional markets and building local relationships but might limit flexibility if boundaries are too rigid.
5. Skill-Based Distribution.
Leads are matched with reps who have specific skills or product expertise, ensuring the most qualified person handles leads requiring particular knowledge.
It enhances the chance of successful conversion but relies on correctly identifying reps’ skills.
6. Priority-Based Distribution.
Leads are prioritized by potential value or conversion likelihood and assigned accordingly, often to experienced or successful reps.
This method maximizes high-value lead handling but can concentrate opportunities with few reps, causing imbalance.
7. Cherry-Pick.
Sales reps select leads they prefer from the CRM, with the fastest reps claiming the best opportunities.
This method encourages competition and self-selection but it can promote internal competition over collaboration.
8. Blind Pull System.
Reps see lead details only after accepting the lead, minimizing bias in selection and ensuring fairness in lead handling.
It requires reps to trust in the quality of leads and demands a high level of engagement.
9. Manual Assignment.
Suitable for small teams, the head of sales manually assigns leads as they enter the system.
It allows for highly tailored distribution based on human judgment but is labor-intensive and less scalable for larger volumes.
Which lead distribution method to choose?
The automatic lead distribution is ideal for companies seeking efficiency and consistency, where leads need to be quickly and evenly distributed based on clear criteria. It suits larger organizations with a high volume of leads and a well-defined sales process.
The manual lead distribution offers flexibility and can benefit smaller teams where personalized engagement or sales rep autonomy is prioritized. It’s suitable for businesses where reps need the freedom to choose leads that align with their strengths or schedules.
Most businesses will benefit from a hybrid approach, combining elements of both methods.
Key takeaways
Efficient lead distribution is key to maximizing sales opportunities. Assigning leads to the most suitable sales reps enhances the chances of closing deals by ensuring leads are matched with reps who can address their needs effectively.
There are several lead distribution methods, each with unique advantages and suitable scenarios. These include round-robin, group-based, weighted, geographic, skill-based, priority-based, cherry-pick, blind pull, and manual assignment.
The automatic lead distribution method ensures rapid and consistent lead allocation using predefined criteria, which is ideal for larger teams that need efficiency.
In contrast, the manual lead distribution method offers flexibility, autonomy, and personalization, which is more suitable for smaller teams.
Effective lead distribution relies on using strategic criteria such as rep expertise, geographic location, and lead priority to route leads efficiently.
Many businesses benefit from a hybrid approach that combines elements of both manual and automatic methods.
