How Does Lead Distribution Work and What Is It?
Did you know that you have only around five minutes to convert a lead before they change their mind? These 300 seconds are given to you to distribute leads to the right representative or agent, and you can’t fail. The good news is you can automate the process. Phonexa’s top-tier lead distribution software guides consumers [...]
The post How Does Lead Distribution Work and What Is It? first appeared on Tekrati and is written by Gia Patterson
]]>How Does Lead Distribution Work and What Is It?
Did you know that you have only around five minutes to convert a lead before they change their mind? These 300 seconds are given to you to distribute leads to the right representative or agent, and you can’t fail.
The good news is you can automate the process. Phonexa’s top-tier lead distribution software guides consumers to the best product or sales rep while considering the parameters set by lead buyers and sellers. LMS Sync, the all-encompassing lead distribution software from Phonexa, benefits publishers, advertisers, and leads themselves.
Read on to know more about lead distribution and how it works.
What Is Lead Distribution?
Before we start, let’s zoom out to observe the whole picture.
Lead distribution isn’t isolated from the rest of the lead generation cycle, which also includes lead tracking and analytics. Your performance in lead tracking and analytics affects how you configure your lead distribution and vice versa, making it reasonable to strive to synergize the three processes.
Speaking of synergy, it’s only possible when you use all-encompassing lead management software (like Phonexa’s LMS Sync, for example) capable of bringing all your data into one place and making it accessible to all team members.
And now back to lead distribution.
- Lead distribution is connecting your leads to the best buyers while considering the pre-set parameters (the price per lead, the number of leads to buy or sell, and the priority of sellers/buyers).
In reality, lead distribution works like this:
- Leads are generated and qualified: only the leads satisfying the predetermined set of parameters are supplied to the market, eliminating duplicate and fraudulent leads.
- Leads are offered to the best buyer: the highest-bid buyer receives the offer, whereas excessive and declined leads are offered to the next best buyer. The process continues until all leads are sold, or no match is found.
The result of a proper lead distribution is:
- Merchants (lead buyers) get high-intent leads at the best price.
- Publishers (lead sellers) receive intended remuneration for their leads.
- Leads get what they were looking for – the best product or sales rep.
What Is Ping Tree, and What Is Its Role in Lead Distribution?
The technology behind lead distribution is called Ping Tree.
- Ping Tree is a process of real-time lead distribution using Ping Post when leads are distributed to multiple buyers at the same time depending on the buyers’ and sellers’ lead criteria (the price per lead, the volume of lead to buy or sell, etc.).
Ping Post enables advanced lead distribution to:
- Connect consumers to the best fit for them
- Trade leads that fit your criteria only
- Update your strategy on the fly if necessary
As buyers are pinged with leads, they can accept or pass but the number of those passing is usually not high since strategic algorithms find the best fit for each lead.
Is It Worth Buying Lead Distribution Software?
Lead distribution software is a must for a business willing to automate, scale, and customize. There’s no better way to handle dozens, hundreds, and thousands of leads than by automating the process.
Marketers say that the biggest benefits of automation are saved time (74%), increased customer engagement (68%), improved communications (58%), and up-selling opportunities (58%). Eighty percent of marketers using automation software generate more leads; 77% also convert more leads. At the same time, increasing the quality of leads remains the top priority for 68% of B2B professionals, followed by increasing lead volume at 55%.
Numbers don’t lie. It would be best to nurture your leads throughout the customer journey, from acquisition to sales to retention, with lead distribution being a crucial – but not exhaustive – component of the process.
How Can Lead Distribution Benefit Your Business?
It’s in your best interest to make leads happy – that is, connected to a relevant product or sales rep – and lead distribution software does that and even more by allowing you to:
- Take the stress off your employees. With a lead distribution system at work, your employees don’t need to sell leads manually. This saves resources, eliminates human error, and leaves your staff fresh for tasks that cannot be automated.
- Be a reliable partner. When lead buyers know what they pay for and lead sellers can offer leads to multiple buyers simultaneously — knowing that their order will soon get filled — your trust grows in the eyes of customers.
- Automate and scale your business. Providing a high quality of service is only possible when the process is automated, allowing you to route any number of leads at the same time.
Ultimately, a properly configured lead distribution system will grow your ROI by constantly sending leads on a path that is most likely to result in a conversion.
Lead Distribution as Part of Lead Management
Before we wrap it up, let’s break down the customer journey to see how lead distribution integrates into the whole cycle of sales.
- Lead acquisition. First, a potential customer clicks on your ad, link, or speaks to your IVR, leaving personal information that your software analyzes before distributing the lead to a relevant product or agent.
- Lead distribution. As the software learns the detailed profile of the lead – age, gender, location, budget, interests, etc. – it releases the lead to the market so the most generous advertiser can buy the lead.
- Lead analytics. The never-ending cycle of lead acquisition and trade is constantly analyzed to enhance the customer journey and your marketing campaigns.
The whole cycle would be broken if we took lead distribution out of the equation, or any other part for that matter.
Final Thoughts
Any lead-selling business can benefit immensely from lead distribution software, especially if integrated into a well-tuned lead management system. Connecting each of your leads to the best fit for them will grant you long-term benefits by growing your brand image and ROI.
The post How Does Lead Distribution Work and What Is It? first appeared on Tekrati and is written by Gia Patterson
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