New study reveals best performing lead distribution methods

New study offers tips for automated sales lead distribution methods that can increase sales success.
New study offers tips for automated sales lead distribution methods that can increase sales success.

Every sales team utilizes some type of lead distribution method, and the approaches can vary greatly. While most sales organizations have moved past the days of paper “lead cards,” being handed out during sales meetings, many are still using manual distribution methods, with a gate keeper personally assigning new leads to awaiting sales reps.

This is surprising when you consider the plethora of technology available today to help automate the process of lead distribution. But baton-passing efficiency aside, does the way a sales organization chooses to first distribute a lead to a sales rep have a significant impact on contact and conversion rates?

We set out to find the answer in a new Velocify study titled, “Best Lead Distribution Methods for Optimal Sales Performance,” and what we found is that sales organizations can benefit greatly from automated lead distribution overall, and in using certain methods specifically. In fact, the study shows that automated distribution alone can increase conversion rates by 87%, and companies using a combination of different distribution methods can benefit even more. Much of that increase in conversion can be attributed to the improvements in response speed that auto distribution methods yield.

Automated distribution methods are abound and are most easily organized into three categories – push, pull, and hybrid. Within each category, sales teams have the ability to deploy from the most basic to advanced lead distribution programs. For example, in the “push” category of methods, a common, simple distribution approach is “round-robin” distribution, where leads are distributed evenly to all available sales reps in cyclical fashion. At the other extreme within the “push” category is “performance-based distribution” where the rep performance on a number of key metrics can be monitored in real-time to determine who should receive an incoming lead. The ideal or most appropriate automated distribution method can vary greatly based on a sales organization’s unique structure and strategies.

But which methods perform best and what gains may your organization get out of trying a new approach? The research revealed a number of key findings, including:

  • Some methods drive faster response times than others
  • Faster response times correlate with higher contact rates which correlate with higher conversion rates
  • Using multiple distribution methods, as opposed to just one, results in even better performance

Dig In
This new study includes analysis of almost three million leads collected from a sample of more than 600 sales organizations, across a variety of industries. The full study can be downloaded here.

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