Re-engineering Lead Management

Archived Published: 07 October 2002 ID: G00110551


  Free preview of Gartner research


Best practices in lead management enable enterprises to leverage cross-functional process re-engineering and use technology to optimize the quality and timeliness of leads.

Table of Contents



Few enterprise business processes are as clearly valuable — and yet just as clearly broken — as lead management. Most enterprises recognize the importance of rapidly and efficiently nurturing leads and routing leads to maximize the effectiveness of their marketing and sales efforts. Nonetheless, more than 70 percent of leads are never acted on — typically because they do not reach the right person or organization at the right time.

Lead management remains a slow, inefficient and essentially manual set of operations that are seldom optimally orchestrated on an enterprisewide basis. The result is that sales representatives generally believe that leads — with the possible exception of the highest-rated leads — have little value, and they act on them only when time permits. This perception, of course, simply increases the problem, because delays in responding to leads both increase their costs and reduce their value.

Improving lead utilization and lead close rates requires that enterprises address and embrace a holistic approach to lead management, with a particularly sharp focus on the relevance and timing of the information that is delivered. The place to begin in getting a handle on the challenges and opportunities presented by lead management is a thorough understanding of current and best practices for the processes involved.

Figure 1. Lead Management: Process Overview
Research image courtesy of Gartner, Inc.

Source: Gartner Research

This Spotlight focuses on the best practices in lead management, in these critical areas:

  • Lead Planning and Generation: Most marketers — being intensely and understandably focused on lead generation — fail to recognize the importance of lead planning. Effective lead planning is, in fact, a mission-critical requirement, because it provides the framework for the alignment of objectives and a coordinated approach to resource allocation. For a more detailed discussion of these issues, see "Effective Lead Generation Requires Planning for Results."

  • Lead Qualification: Lead qualification prioritizes leads according to their readiness to be acted on and the opportunities they present. This, in turn, results in more-effective resource utilization and improved lead utilization and close rates. For further insights, see "Lead Qualification to Optimize Opportunities and Resources."

  • Lead Distribution: Many enterprises, in an attempt to ensure timely delivery of leads, have deployed sales force automation or lead automation functionality that routes leads on the basis of basic criteria. Optimized lead distribution, however, depends on the use of a rich set of data and business rules, as well as incorporation of content that may aid in generating a sale. For more information, see "Lead Distribution Profits From Relevant Insight and Content."

  • Lead Maturation: Distributing leads that are simply not ready for direct sales attention is a waste of resources and opportunities. Effective lead maturation helps to eliminate this problem, positively affecting lead utilization and close rates. For additional insight, see "Lead Maturation Delivers Better Leads and Better Sales."

  • Lead Measurement and Reporting: Enterprises can improve overall lead management efforts through more-targeted and more-intelligent delivery of relevant information, instead of a narrow focus on lead pipeline and close rates. For additional perspective, see "Lead Management Measurement and Reporting."

Any enterprise that wishes to enhance its lead management practices must identify specific areas where improved information quality and latency reduction can enhance their overall effectiveness. This requires a gap analysis to determine the distance between its current efforts and defined best practices in lead management. This analysis should focus on process and automation, avoiding the all-too-common mistake of assuming the implementation of new technology will automatically deliver optimal lead management. Sales force automation and lead management applications certainly provide functionality that helps automate processes and facilitates deployment of business rules. However, without a thorough examination and re-engineering of their lead management processes and practices, enterprises will probably not achieve their desired goals, or realize the full sales and marketing potential of the leads they receive.


"Effective Lead Generation Requires Planning for Results" — Enterprises must approach lead management planning as an enterprisewide strategic requirement — not simply a tactical issue. By Claudio Marcus

"Lead Qualification to Optimize Opportunities and Resources" — Best practices in lead qualification improve close rates and reduce demand on enterprise resources. By Claudio Marcus

"Lead Distribution Profits From Relevant Insight and Content" — Automation can make lead management more rapid and more cost-effective, but only if it is enhanced by high-quality business logic and capacity assessment. By Claudio Marcus

"Lead Maturation Delivers Better Leads and Better Sales" — Best practices in lead maturation are the key to ensuring that the right lead reaches the right person at the right time. By Claudio Marcus

"Lead Management Measurement and Reporting" — Effective lead measurement and tracking can deliver significant improvements in business processes and closing rates. By Claudio Marcus

© 2002 Gartner, Inc. and/or its Affiliates. All Rights Reserved. Reproduction and distribution of this publication in any form without prior written permission is forbidden. The information contained herein has been obtained from sources believed to be reliable. Gartner disclaims all warranties as to the accuracy, completeness or adequacy of such information. Although Gartners research may discuss legal issues related to the information technology business, Gartner does not provide legal advice or services and its research should not be construed or used as such. Gartner shall have no liability for errors, omissions or inadequacies in the information contained herein or for interpretations thereof. The opinions expressed herein are subject to change without notice.

Why Gartner

Gartner delivers the technology-related insight you need to make the right decisions, every day.

Find out more

Call +1 855-515-4486 or contact us

to become a Gartner client.