What is lead quality?

The quality of a lead is determined by several factors. 

The first is how qualified that individual seems to be for your product or service. Some organizations take into account how long it took that person to sign up, what information they entered during registration, etc. This kind of data helps you determine if an individual is serious about your company's products or services or just signing up for everything they see. 

The second important factor in lead quality is when that person signs up. If you can track when people are registering online, then you have another way to qualify their potential interest in your offerings. 

Certain times of day may indicate when people are thinking about making purchase decisions - after work on weekdays between 5 p.m.-7 p.m., for example - which helps pinpoint hot leads at strategic times of day to reach them before they make purchasing decisions elsewhere. 

You can use these two metrics to help measure potential sales opportunities based on both who they are and when you could reach them with marketing messages via email, but there are other important things to look at as well. 

One useful metric is how often someone has purchased from you in the past. However, since some companies might not have an existing customer list available for measuring everyone who's placed orders within previous months or years, you might want to focus instead on lead quality through website visitor engagement. 

Someone who clicked through multiple pages of your site probably had more time invested than someone visiting only one page before abandoning their session, so you can extrapolate from multiple views about higher interest levels among people with deeper website histories. 

Another thing to look at is any events that are marked complete within your organization's CRM system. These include setting up meetings, sending out invitations to appointments or conferences, requesting quotes, receiving proposals for bids, etc. 

These are all positive interactions that mean that your business is actively engaging with possible clients.

A high volume of completed activities means your team might be winning contracts with larger customers because of highly engaged employees rather than reaching out less frequently to smaller firms whose engagements aren't recorded as frequently within larger company databases. 

Each different form of measurement offers insight into where you need growth within your current performance, whether it's related to communications strategies or employee skillsets related to targeting new prospects effectively.

How is lead quality measured?

Ask yourself, Which aspects of a lead’s profile are most important? You should have a pretty clear idea of what you consider a top-notch lead. 

For example, if your company sells kitchen appliances online and you need leads for prospective buyers who live in homes with a certain number of rooms or who can afford to spend a certain amount on new appliances, you might place greater weight on zip code or annual income when rating leads. 

Other companies may prefer leads that meet other criteria such as having specific job titles or having designated influence over potential customers. Whatever your priorities are regarding leads' profiles, incorporate these factors into your measurement system. 

This will help ensure consistent evaluation of every lead opportunity. Companies often use an email tracking tool like HubSpot to accurately evaluate how well sales reps target their marketing efforts and distribute content. 

Reporting tools give sales reps detailed information about opportunities in their pipeline and keep track of how effective different outreach tactics are at driving quality conversations. With all your systems in place, it’s time to assess which methods generate high scores for real estate professionals so you can replicate them consistently across your team. 

Mapping lead scores to revenue outcomes is one way to measure whether salespeople are receiving high-quality leads; another way is reporting changes in conversion rates among recipients of higher-rated leads. 

Your ability to track both qualitative (lead score) and quantitative (leads generated) measures enable you to continually improve processes around generating quality leads. 

You want everyone involved in generating business development relationships—from frontline staff through upper management—to understand exactly what good looks like, without exception. 

That knowledge empowers people throughout your organization to contribute toward achieving better lead generation results. People will also be more confident about following best practices if they know how those choices relate to lead scores, as well as goals.

In fact, seeing those connections increases enthusiasm for participating in ongoing improvement projects. And that’s a great way to build a culture of continuous improvement at any stage of your organization’s growth. 

You can also use tools like Salesforce Sales Cloud to help build out automated nurture flows using personalized messaging and customized drip campaigns based on past interactions between sales reps and qualified leads.

Why is lead quality important?

At any given time, you have an array of prospects in various stages of your sales funnel. You need to be aware of how much your leads are worth so that you can allocate sufficient resources for nurturing them accordingly. 

If one lead has a higher value than another because he or she is farther down your sales funnel, then it would make sense to invest more time in nurturing him or her. Without understanding your specific industry’s lead-quality standards, there’s no way for you (or anyone) to know whether one lead is better than another; all you can do is take each lead at face value. 

But once you start measuring quality, you'll have a good idea of what works best for your business—and why. From there, you can improve lead quality by building on what's working and adjusting based on insights from your data. 

The last thing you want is to waste valuable hours trying to nurture bad leads. The cost/benefit ratio just isn't worth it. With proper measurement, however, great opportunities will become clear almost immediately.

Overall Data Quality Metrics

This metric looks at the overall error rate

Are emails being marked as spam? Are phone numbers being marked as incorrect? These questions assess factors beyond B2B intent. 

Since most records originating from email lists have strong B2B intent, if they’re being flagged as spam or bad, chances are they may not be adding value to your company after all—even if their email addresses appear genuine enough. 

If you see an abnormally high number of flags for data quality in certain lead sources, it's worth looking into whether there's a problem with these record sources.

For example, perhaps someone bought your competitor's database and is sending bad information to you through mail merge templates. 

Or maybe the source is passing along address details but isn't providing much context around what makes them qualified in terms of B2B intent; in that case, you're just getting names and addresses that aren't very useful for sales outreach.

Unfortunately, there’s no magical formula when it comes to improving lead quality; rather than aiming for perfection in one particular area, you'll need to work on multiple fronts simultaneously.

How do you improve lead quality?

If you want to improve lead quality, it’s important that you know what exactly constitutes a high-quality lead. First and foremost, a high-quality lead should be interested in your services (or those of your client). 

If they aren’t at least open to hearing more about your services (or those of your clients), then there’s no point in wasting time calling them. Second, each business has different lead-qualifying criteria. 

The qualification rules for an entertainment lawyer will differ from those of a web designer or event planner. And third, leads are rarely 100% qualified when they reach out. They might have some interest in your product or service—enough so that they responded to an ad—but not enough so that signing up is a foregone conclusion. 

Regardless of how much research you do on leads before you call them, don’t expect them to give you all their contact information immediately either. You need to sell yourself first before they buy your product—there are no exceptions here. 

Don’t let rejections get you down! Asking someone who isn't ready to talk with you means nothing; if anything, it's great practice for when someone really is interested in talking with you about your services. 

Just make sure you always leave an email explaining why you're calling and how to get back in touch with you if they decide they'd like to learn more. That way, even if people aren't quite ready for your product now, they'll have full details waiting on their phone just in case things change later on. 

Find ways to engage prospects

Engaging prospects doesn’t just mean finding new leads—it also means getting into contact with leads after they reach out by sending direct mailers or setting up events designed specifically around meeting potential clients face-to-face. 

Finding creative ways of engaging people while educating them about your brand can help convert some would-be prospects into paying customers instead of passing one-off contacts.

How to measure lead quality?

There are a number of ways that you can measure lead quality. For example, you can decide to only talk with leads who have already demonstrated some kind of interest in your business—those might be people who have signed up for an email list or subscribed to a certain publication. 

But even better is someone who has engaged with your content directly by filling out a form or providing their name and contact information. You can also base lead quality on how much (or how little) your marketing campaign costs per lead and how many other companies those leads end up buying from after they reach out to you. 

If I were going to use only one method of measuring lead quality I would base it on the engagement as measured by form completions or lead submissions. That's because, more often than not, leads don't come to us looking for something specific; instead they come because they're starting broad conversations about problems or pain points. 

So it makes sense that if someone has started down that conversation—which means engaging with my content—they're further along than just some random person Googling around for answers. 

That's why I would consider leads who complete forms or submit leads highly qualified. It doesn't mean all of them will become customers; but these leads are obviously interested enough in what we do to take action (i.e., submit a form). 

I know if I approach them with relevant offers and valuable information about their problem/pain point there's a decent chance of converting them into customers down the road.

Determining Lead Quality

Before you can improve lead quality, you need to determine how to measure it. There are four general approaches to measuring lead quality—or any business metric for that matter. 

You can use strategic or operational metrics; internal or external metrics; hard numbers or soft measures; and quantitative measures (numbers) or qualitative measures (opinions). Choosing which approach is best depends on your specific situation. 

For example, your measurement options might depend on whether you're an individual salesperson working out of your home or a company with thousands of employees across multiple locations. If there's one thing to keep in mind, it's that it's often better (and easier) to measure soft measurements like opinions than hard numbers like sales revenue figures. 

That being said, opinion data does have its limitations since individuals who choose to fill out surveys aren't always representative of your larger target audience. And even if they were 100 percent representative, opinion data only tells you what people think about something. It doesn't show whether they'll act upon their thoughts. 

Still, if it makes sense given your unique situation, collecting qualitative feedback is worth considering because many times it will provide valuable insight into why customers buy or don't buy certain products/services or why prospects continue using certain solutions rather than others. 

The more information you can gather from these types of soft measures, the better equipped you'll be to make changes and adjustments as needed. Don't rely on them exclusively though! 

At some point, sooner rather than later (if not immediately), you should start keeping track of key performance indicators (KPIs) such as the number of inquiries received or specific email subject lines that work well based on lead scores.


The quality of your leads is hugely important. If you attract poor-quality leads—whether they are careless responders or not interested in your product—it’s unlikely that you’ll succeed. 

On top of that, if your company attracts poorly qualified leads, it could end up with negative consequences for your reputation. By measuring lead quality properly, though, you can improve it significantly. 

And by understanding how lead quality is measured, why it matters, and how you can improve it across multiple areas of your marketing efforts – from SEO to PPC – you can avoid costly mistakes and drive down acquisition costs over time.