In the golden age of the traveling sales rep, leads were typically divided up based on geographic territories. This approach made sense for reducing traveling cost and other expenditures. However, with the ease of modern travel and communication, more and more companies are turning to round-robin lead distribution to increase transparency, reward high performers, and maintain control over lead management. In a “round robin” lead distribution system, leads are assigned to sales reps in a rotating order.
You may be wondering if round-robin lead distribution makes sense for your company. Here are some key benefits to consider:
Transparency: Distributing leads based on criteria (e.g. geography, industry, etc.) makes it nearly impossible to separate the performance of sales reps from the strength of their territory. Since It’s common to blame poor sales performance on poor territory, effectively evaluating sales reps can be a challenge. Using round-robin lead distribution ensures that each rep receives leads that are equal in quality to everyone else--allowing for accurate sales performance measurement.
Performance-Based Distribution: Weighted round-robin distribution is commonly used to ensure that high performers receive more leads than low performers. Because each sales rep still receives leads of equal quality, measuring sales rep performance remains highly accurate, while high sales performance is rewarded with an increase in lead quantity.
More Control: Adjusting territories or other criteria to ensure that sales reps receive the right quantity of leads can be time consuming for management (and stressful for sales reps). These adjustments are much easier to make with a round-robin system. Taking territory from experienced reps to give to newbies is no longer necessary--freeing up time for management, and greatly improving sales force morale.
You may be thinking that there are benefits to distributing leads based on criteria such as geography, industry vertical, product line, and so forth. You’re absolutely right! It’s likely that you have certain sales reps that are better equipped than others to close leads from specific industries, countries, etc. You don’t have to give up these benefits in order to use round-robin lead distribution. It’s possible (and recommended) to create round-robin distribution queues based on the criteria mentioned above--keeping sales reps working quality leads AND focused on their areas of strength.
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