CRM Lead: How Do I Disqualify Thee? Let Me Count The Ways

CRM Lead DisqualificationExecuted correctly, inbound marketing efforts can create a flow of quality CRM leads for salespeople to follow up with.

Inbound marketing leads are of much higher quality than, say, a list of visitors to a trade show booth. However, there are still going to be a percentage of leads that some salespeople affectionately refer to as “crap”.

A crap or bad lead should be marked as Disqualified in CRM. Although, since salespeople are among the less compliant CRM users, a bad lead can sometimes be left in an Open or New state indefinitely.

The more aggressively a salesperson disqualifies bad leads, the more time he or she will have to spend on quality leads. But, is it enough to just flag a lead as Disqualified in CRM?

Most CRM systems can be easily configured such that the reason a lead has been disqualified must be selected from a list.

There are two good reasons for requiring a reason for CRM lead disqualification.

1. Selecting a reason gets salespeople into more of a disqualification mindset. If the CRM system is configured such that a salesperson is required to select the reason a lead was marked disqualified, there will be resulting “action taking momentum”.

2. The reasons that leads were disqualified can be important feedback for marketing. While marketing can never eliminate bad leads, there are strategies and tactics which can result in a higher percentage of leads that are worth salespeople’s time to pursue.

Just because a lead is disqualified from sales pursuit doesn’t mean that the person shouldn’t be part of an email marketing campaign. There may be a few golden nuggets in a sea of disqualified leads.

Mechanically, Reason Disqualified can be a dependent pick list that pops up when a salesperson changes a lead’s status to Disqualified in the CRM system.

Selecting a reason gets salespeople into more of a disqualification mindset.

Here are some hypothetical Reason Disqualified pick list values with explanations of each. Some of these will not apply to your business. Conversely, you likely have several reasons that do not appear here.

Competitor

The lead is either a direct competitor or a service provider for a competitor.

Too Small

There’s a deal value at your company below which it’s worth time pursuing a lead. When a lead falls below your threshold, this reason would be selected.

No Budget

You communicate with the lead, but they make it clear that your price point is well above what they would consider paying for your product or service.

Out of Market

You only sell into certain regions or countries. Leads from outside those served areas are immediately disqualified. Using reverse IP lookup, out of market leads could be filtered from going into the CRM system in the first place.

Unfindable

The lead used a cryptic freemail address. The web form does not require company name or phone number. There’s just not enough information to research the person in a sales intelligence system or on sites such as LinkedIn.

Unreachable

The salesperson has gathered intelligence on this person. Their company looks to be a fit for your product or service. However, the CRM lead does not respond to one-to-one emails or to phone calls.

No Access to Decision Maker

The lead intentionally blocks access to the decision maker. The deal is not going to progress.

Already Committed

The lead already bought from a competitor, but still wanted to check out your product or service.

Not Interested

The lead may be interested in your content, but they have no interest in your product or service.

By ruthlessly disqualifying leads that would likely have been a waste of time — and indicating why those leads were disqualified — a salesperson helps themselves and helps marketing.

Marketing is able to analyze the reasons that leads have been disqualified. Changes to content and offers can be tested with the goal of decreasing the percentage of leads that are disqualified.

Salespeople can focus on the leads that are most likely to result in closed opportunities.

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