Hot Leads vs. Warm Leads vs. Cold Leads: How to Define?
Disclaimer: Differentiating between the types of leads your marketing department deals with ensures a proper strategy and a significant increase in conversion rates.
Many different factors influence the conversion rate of a business. However, any marketing funnel is aimed at leads. Depending on the type of lead you deal with, your marketing decisions will vary. Therefore, it is crucial to determine the type of lead you wish to interact with, be it a hot lead, a warm lead, or a cold one. In this article, we will focus on the differences between those types and the ways of converting them.
What are hot leads?
Hot leads are the most valuable form of leads for any company. The more hot leads a company has, the more money it makes, because hot leads are consumers who are just one step away from buying your product or service. They are aware of your product, require it, and are willing to suggest it to others. But that doesn’t mean you should stop paying attention to them. If you continue to interact with your hot leads, they will become loyal customers and might become ambassadors of the brand. This is especially important in the era of social networks and digital technologies. Your next happy client could be a popular blogger with thousands of followers. Having such influencers satisfied with your service will bring you a new audience. And that audience will already consist of warm leads.
What are warm leads?
Warm leads have heard of your company but are not 100% sure they need your services. Warm leads might be those who have found you via the recommendation of a reliable blogger; they might have visited your website already, subscribed to your newsletter, or attended a webinar. In other words, they have already come across your business and know what you can offer them. However, marketers need to make some efforts to convince them to purchase your product. It may be another free-of-charge webinar announcing special offers or a small pre-sale product used as a teaser. Sometimes warm leads just need some time to carefully examine your website and make a well-grounded decision.
What are cold leads?
This type of target market is the most challenging to deal with. Cold leads know nothing about your company, and they do not know that they need your services. Therefore, they should be guided gently through the marketing funnel. The process might be long, but if they stay satisfied, they will remain loyal to your business. The first point of contact might be an ad on the news feed, a cold call, or a mailing list.
Interacting with different types of leads
Hot leads expose your most grateful audience. The benefits of dealing with them are obvious: the indicator of sales related to the number of leads will be very high, as hot leads are ready to become your customers. Another advantage lies in the possibility of carefully examining your target audience and adding some details to a customer profile. Understanding your target market will help you design an ideal product for them. Besides, you can arrange a customer survey and ask them about their experience of using the product and what improvements they would like to see in it.
The difficulty may lie in trying to retain your existing customers. Communicate with customers on a regular basis through newsletters, provide after-sales support, and invite them to join in activities and events to help spread the word about your product. However, avoid being overbearing.
Warm leads are open to communication, and this is their best quality. Thus, it is easier to convince them to buy your product, and the process of closing a deal is shorter than with cold leads. When people are interested in your business, they are more likely to leave their contact information for you to build an email list.
Warm leads are those who have already googled your website, called your contact center, or subscribed to your blog. Therefore, you should be well-armed with modern programs and tools to track those processes. Call tracking is an effective way to keep an eye on those who decide to reach you for a phone consultation. With a call tracking system, you will be aware of the most productive traffic channels and the keywords your audience is looking for. Gathering warm leads is a time-consuming and sensitive process, so keep your SEO skills sharp.
That part of the audience has never heard anything about your product, which is why it takes the longest to bring them to sales. Many companies prefer to outsource the process of gathering leads if they can afford it. Those who decide to manage themselves might consider the following options:
- take care of the online reputation your company has; it is crucial for modern businesses
- try cold calling, but make sure you call at a convenient time
- sending emails to potential clients might work well, provided you have an attractive and succinct letter design
- investigate targeting new audiences with the goal of increasing brand awareness on social media sites
How can you prevent your leads from cooling down?
Unfortunately, one of the most common mistakes is plunging too deep into guiding cold leads through the marketing funnel and leaving them happy with your product but unnoticed when the deal is closed. Therefore, warm leads are losing interest in your product, and you have to start the process of generating leads again. However, brushing elbows with your existing clients is less effort-consuming and may provide you with new sales, so it is important to keep your warm and hot leads from cooling down.
- Send them emails with special offers, referral programs, product updates, etc. Do it regularly, but not too often.
- Use various channels to send them data about upcoming sales or new versions of the product.
- Conduct prize draws and invite all your customers to participate to show them you value them.
- Work on your product improvements and let your market know about them.
An efficient marketing strategy cannot be applicable to all types of leads that your company encounters. Cold leads demand a significant amount of time and attention to learn about your product, see its merits, and make a purchasing decision. Warm leads need less effort, but they still want excellent customer service. Hot leads are those who are about to purchase your product but should not be abandoned after the transaction. They may become devoted consumers and true brand ambassadors, bringing organic traffic to your firm.
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