New Leads360 Research Identifies Speed-to-Call as Critical Driver of Sales Lead Conversion
- Written by Demand Gen Report Team
- Published in DemandGen Reports
Speed-to-call is the single largest driver of lead conversion in the first two minutes after the lead was generated, according to new research from Leads360, a leader in sales lead management software. The company conducted a survey to determine the impact of speed on lead conversion rates.
The study was conducted on the data of several million Internet-generated leads and revealed that sales leads called under 60 seconds showed an astounding 391% improvement over average conversion rates.
In 2009, the importance of speed-to-call and response time was widely accepted as a driver of lead conversion among forward thinking business-to-consumer organizations, including best-in-class financial institutions, insurance carriers and higher education providers. However, some authorities maintain that truly motivated and qualified consumers are less sensitive to responsiveness. The result of this latest study by Leads360 ultimately found that speed-to-call is in fact a critical factor, even for high quality leads and motivated consumers.
"For consumer-facing sales teams, the key take-away from this research is that processes must be implemented that enable organizations to consistently contact each and every consumer inquiry within minutes, if not seconds,” said Jeff Solomon, one of the founders of Leads360 and SVP of Product and Marketing. “Our research reveals that organizations that are able to respond the fastest to consumers have a nearly insurmountable advantage over those that are slower to respond, and this advantage applies to a large percentage of consultative sales, not simply one-call conversions."
Additional findings from the study indicate that leads called between 60 and 120 seconds after they were generated converted 160% more often than the average. Also, if leads cannot be reached within the first few minutes, attempting contact quickly is still valuable. The study also indicates that leads called within 24 hours are still 17% more likely to convert than those that were not. Finally, 88% of leads that eventually convert were called within the first 24 hours. This does not imply that all of these leads convert within 24 hours, but rather establishing the relationship at this juncture is critical to conversion — days, weeks or months down the line.
Leads360's research shows that, even though the consumer may go price-shopping, a sense of loyalty drives them back to the vendor that called them first. By initially providing consumers with education and responsive customer service, smart companies are able to create strong social and psychological bonds that tend to override competing offers.
To download a free copy of the speed-to-call whitepaper, visit Beyond Qualification: The Impact of Speed on Lead Conversion.