August 18, 2021
Lead enrichment is the process of collecting, managing, and analyzing data that pertains to a customer’s interest in a company’s product or service. Ultimately, the goal of lead enrichment is to generate insights on how to enhance the marketing and sales process and increase conversion rates.
Increasing the efficiency and effectiveness of marketing and sales strategies is becoming progressively competitive as companies are seeing new marketing channels and platforms arise (such as TikTok, Twitter, etc.), the sales intelligence market, and advancements in lead intelligence tools. Furthermore, lead enrichment provides companies with a data-driven solution to improving their sales and acquisition processes, ultimately improving sales conversion rates.
As mentioned above, the overarching goal of lead enrichment is to improve the efficiency and effectiveness of marketing and sales teams, both internally and externally. Enriching leads provides enhanced information and insights about a potential customer, benefiting all aspects of business that rely on leads. For example, more information about a potential customer can help marketing teams more accurately qualify and target leads, by creating more accurate customer profiles. Consequently, lead enrichment assists the sales team by connecting with decision-makers on a more personal level, due to crafting a more comprehensive customer profile. Here are some more benefits of lead enrichment.
Beyond the main objective of lead enrichment, improving the information and insights about a lead, it is important to note there are many other use cases involved in lead enrichment. This applies to both B2B and B2C lead enrichment processes and strategies. Here are some other use cases within lead enrichment:
Now that we’ve looked at the benefits, importance, and uses surrounding lead enrichment, let’s take a closer look at the process of lead enrichment itself. Ultimately, there are four major steps involved in lead enrichment: data collection, lead routing, lead conversion, and lead nurturing. It is important to note that lead conversion and lead nurturing are ongoing processes and sometimes don’t occur chronologically, as listed above.
Before any lead enrichment processes can occur, companies must gather data about their leads. Companies can either collect data from prospective customers with in-house data collection and CRM data collection processes, or they can purchase third-party lead data from data providers. External lead data is a great solution for many companies looking to extract and leverage significant amounts of data without expending too many overhead costs.
Once this is done, part of the gathering process includes lead scoring and lead segmentation. Lead scoring is a point-based lead management method that analyzes sales leads with customer data such as job title, age, location, etc. Lead segmentation is the process of determining how you segment or group your leads based on various criteria and data points. Lead scoring and lead segmentation combine to act as a standardization process of qualifying and measuring leads as they move into your CRM and through your sales funnel for your specific business needs.
Lead routing, also known as a lead assignment, is the process of assigning and distributing leads throughout the sales team. Today many businesses automate this process with factors such as industry, deal size, location, and more. While this step is rather straightforward, lead routing is important to get right, as many sales representatives have different strengths and weaknesses that may impact a particular lead type.
Lead conversion is the process within the marketing and sales funnel in which a lead passes an established threshold lead score. Typically, marketing and sales funnels all consist of four major stages: awareness, interest, decision, and action. Lead conversion takes place during the decision and action stages. This doesn’t necessarily mean there is a guaranteed sale, rather a strong probability that they will become a new client or remain in the decision stage as they stay in the lead nurturing stage.
As we know, the sales process doesn’t always occur linearly. Sometimes, buyers and potential customers enter, exit or change stages within the sales funnel quite frequently. However, a successful lead nurturing process helps companies ensure that they are developing and maintaining relationships with customers, no matter what stage in the sales funnel they are. It is important to note, sales teams can boost lead conversion and lead nurturing simply by connecting with decision-makers.
Firmographic data is categorical information about a particular company that helps measure and identify a company’s structure, qualities, and other unique identifiers. Some examples of firmographic data include location, industry, size, and revenue.
Public resume data is information on professionals collected from professional networking sites and other public sources. It provides companies with information about professionals such as work experience, location, industry, education, skills, and connections.
Technographic data is information about a company’s technology stack and provides specifics and details about what tools and technologies are being used by companies. For example, technographic data include information such as company name, tech stack list, features, and integrations.
Aside from third-party people data from data providers, such as Coresignal, contact data is also collected internally by companies in nearly every interaction they have with a prospective customer. For example, email subscriptions forms and sample downloads gather and store all information input by a prospective client. Further, contact data collected from email subscriptions are stored and managed in CRM platforms, such as Salesforce or Hubspot.
In all, applying lead enrichment to any marketing or sales process can help boost sales, increase efficiency between departments, and ultimately help companies gain consumer and market trust by providing insights for a more personalized marketing campaign and sales experience. In today’s competitive and digital marketplace, it is more important than ever for companies to maintain brand awareness, create personalized and quality experiences, and enrich outbound marketing strategies.
One aspect of lead enrichment involves the purchase of lead enrichment services or CRM data from third-party data providers. Both cases provide solutions for businesses looking to enrich their leads by directly integrating either new, more up-to-date, or higher-quality data into their CRM.
Lead enrichment is important because it provides numerous benefits to sales and marketing teams, such as improving conversion rates, creating more personalized campaigns, and boosting efficiency.
One example of specific data enrichment in the lead enrichment process would be a company purchasing public external third-party data about a particular company from professional networking sites and social media.
Lead scoring is defined as a point-based lead management process that analyzes sales leads based on implicit and explicit customer data, in both the B2B and B2C sectors. Likewise, in marketing lead scoring is essential to the lead nurturing process, and understanding where a customer is at in the cycle.
In its most basic form, lead enrichment is the process of collecting, managing, and analyzing data and for insights that pertain to a customer’s interest in a company’s product or service.
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