How Does A Lead Generation Software Improve Your Sales Velocity?

lead generation software

Sales is what makes the B2B world go round. The more sales you make the more successful you are. The faster you make these sales the faster is the growth that you ensure for your business. With such a fast-paced trend in the market ‘sales velocity’ has, as a result, become the new buzzword in town. Therefore, a lead generation software is now more important than ever because the technology offers speed, accuracy and ways to measure ROI and growth.

What is a lead generation software?

A lead generation software is a tool that helps sales and marketing teams generate leads through digital channels. It streamlines the process of identifying potential customers, also known as leads, and targeting them through smart activities.

A software, in this case, will expedite the process and facilitate:

  1. Acquisition 
  2. Nurturing 
  3. Scoring 
  4. Management 
  5. Lead Generation Process Evaluation 

Read more about lead generation and how it is useful for your business

What is sales velocity?

Sales velocity measures how fast your business is making sales conversions and generating revenue. In simpler words, sales velocity accurately calculates how fast your business is making money. You get to keep a close eye on how your sales team is performing. You can measure the impact of existing strategies and 

If you want to measure the productivity and ROI of your sales team then keeping tabs on sales velocity will help you improve and grow.

Read more about sales velocity in detail here

How does a lead generation software improve sales velocity?

A lead generation software can improve sales velocity in a number of ways.

  1. Find leads faster

Since sales velocity is all about measuring how fast your company is getting sales conversions it is important to ensure that you acquire leads at an equally fast pace.

A lead generation tool will help you acquire interested leads and engage with them. The faster you find these leads with the help of a lead generation tool the faster you will be able to segment them. If they seem interested you go ahead with them. If they don’t seem interested, they drop off and you get to focus on the next potential customer.

  1. Track leads status for better engagement

A lead generation software will help you engage with leads in a personalised manner.

If you really want to convert leads into customers at a faster pace then you must be aware of the stage at which they are in your pipeline.

When you engage with these leads you ensure that the interested ones don’t drop off.

  1. Focus on retention

Sales velocity is not only about generating sales and filling in your sales bucket. What if the sales bucket is leaky and you have to find a fix for it?

A solid lead generation software helps you identify pain points, faults or errors in the customer journey right on time. So, you get ample opportunity to find a fix for those errors, correct them and increase customer retention.

This way, your sales velocity doesn’t get a hit. You win customers by acquiring them and at the same time retain them with personalised engagement.

  1. Measure results for improvement

A lead generation tool will help you fill the gaps in your lead/customer journey so that you can focus on improvement. When you work towards improvement you plan the correct growth strategy.

Further, you get the chance to review how you guide prospects through the sales pipeline. You would not want your prospects to go silent. So, focus on personalising and improving leads and customer journey to keep up the sales velocity. And, of course, this is easier with a lead generation tool.

Conclusion

Keep up the sales velocity in your company with the help of an effective lead generation tool. The key is to look for ways to improve and the best way to ensure improvement is constant growth measurement through a lead generation tool.

To know more about sales velocity, lead generation and growth, visit LeadMi

What Is Sales Velocity And Why Should Your Business Track It?

increase your sales velocity

The internet, and along with it technology keeps growing and evolving. A prime example of that would be marketing. It happens to be one of the most data-driven activities in the business. Sales, on the other hand, hasn’t changed as much. The same processes while do help with calculating commissions, doesn’t do much to improve overall sales productivity. What will truly help is Sales Velocity, a management metric that has recently gained popularity. But before we proceed any further.

How Do We Define Sales Velocity?

Sales Velocity is a measurement of how fast you’re making money. This management metric is a prominent aspect of sales, yet we don’t give it too much attention. Due to it considering other aspects like trial length, features to measure sales productivity, and pricing is a valuable part of sales.

In simpler words, it is a measure of how quickly business deals are closed, after a customer shows interest in the form of a lead generation. But how do we use it to it’s best potential?

Why Should You Track It?

  • It is quite evident that sales velocity is essential for the growth of your business. 
  • The higher the sales velocity is, the more revenue you’re bringing in.
  • Keeping track of this will help you understand how the sales process impacts your business over time. 
  • It also helps you determine whether your sales process can be optimized.

Accurately Calculating Your Sales Velocity

With how important sales velocity is for, correctly calculating it is extremely crucial.

You first multiply your opportunities created in a period, then divide all that by your sales cycle. Once you do, run each of them through the equation. 

Sales Velocity = Number of Opportunities x Deal Value x Win Rate / Length of Sales Cycle

What Are Its Four Variables?

1. Number of Opportunities

Your pipeline contains a certain number of opportunities(leads). You have to ensure that the opportunities it does contain are qualified, since anything under wouldn’t be good. If it is packed with bad opportunities, there is a slight chance that some of them will convert.

2. Deal Value

Sometimes to referred to as the Average Purchase Value, is simply the average selling price for the deals you close in a month. 

3. Win Rate

The average win rate depends on the number of quality leads you have. How do you identify your win rate? You divide your number of sales win by the total number of opportunities.

4. Length Of Sales Cycle

You measure the length of sales cycle in months, which is why this is the only factor you wouldn’t want to increase. It is also often referred to as an Average Sales Cycle Length.

How Do You Increase Your Sales Velocity?

Now that we know how tracking works, let’s recognize how we can increase and improve it. 

The prime factor that affects your sales velocity is lead generation. The lesser time a lead spends in the pipeline, the higher its chances of making a deal with you. 

But how do you find the best leads? 

A lead is a person who is interested in your brand or the services you offer. Leads are the most important aspect for sales velocity. But how do we find said leads? That is where lead generation comes into play. 

The process of finding potential customers is called lead generation. It is also a method of funnelling in your potential buyers.

Now that we know what lead generation is, does it play an integral part for your business?

The obvious answer is that lead generation is extremely important for the growth of your business. LeadMi can help by generating quality leads that have a higher chance of converting. 

An extremely efficient way is to add more opportunities to your pipeline. While maintaining a healthy pipeline should be your prime focus, learning about your prospective buyers/companies could always give you an upperhand.

Data – driven sales can also give you that much needed edge. Why? The sales velocity is inversely proportional to the sales cycle value. This and many other methods can give your sales velocity that much needed push. 

To learn more, read our blog on What Is Lead Generation And How Is It Useful For Your Business?

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Blog Cover Photo by Jungwoo Hong on Unsplash