Salesforce Leads vs. Contacts: A Complete Guide for 2024

So, what exactly is a Salesforce Lead? Think of a Lead as a name you collect. Maybe they filled out a form on your website asking for a demo, or you met them at a trade show and grabbed their business card.

A Lead is someone who might be interested in what you’re selling, but you don’t know quite enough about them yet.

Sometimes, those “business cards” might not even be from real potential customers. Your competitors might fill out a form to check you out, or maybe even a student or a job seeker. That’s why it’s important to sort through your Leads and find the ones who are most likely to buy.

A Contact in Salesforce is a person, just like a Lead — but there’s a big difference. Contacts are organized.

They’re connected to a specific company (called an Account) and have other details about them that help you build a relationship. It’s like those business cards are sorted into groups based on where they work.

A Contact might have notes about what products they are interested in or even emails and meetings your sales team has had with them.

Turning Leads into Contacts

The cool thing about Salesforce is that you can turn a Lead into a Contact. This is called “lead conversion,” and it’s like magic for your sales process.

Once a Lead is qualified (meaning your team thinks they might become a paying customer), you can convert their information and connect it to an Account.

Having everything organized helps you track where they are in the buyer’s journey and personalize your messaging for a better customer experience.

Every company does this a little differently, but there’s usually a kind of “dance” that happens before a Lead turns into a paying customer. 

Here’s how it might work:

• The Spark: A Lead pops into your Salesforce. Maybe they signed up for a webinar, downloaded something from your website, or your sales team met them at an event.

• Marketing Warms Them Up: Your marketing team might send your Lead emails, useful content, or invitations to events. These steps help get your Lead interested in what you have to offer.

• Sales Rep Steps In: Once the Lead seems ready, a sales rep reaches out. They might have a phone call or Zoom meeting to learn more about the Lead’s needs. Remember that lead qualification step? This is where it gets serious.

• Is It a Good Fit?: Your sales rep talks it over with their team. Do they believe this Lead could really turn into a paying customer? Do they work at the right kind of company? Do they have the budget? If it’s not a match, it might be time for your team to move on.

• Conversion: If everything looks good, it’s time for the magic trick. Your sales rep clicks the “Convert” button in Salesforce. Now, all that Lead information gets organized under an Account, just like we talked about. It’s official — they’re a Contact.

What Makes a Lead Qualified?

Every company decides this for themselves. Sometimes, they use a scoring system. A Lead might get points for things like opening emails, visiting your pricing page, or their job title. 

Marketing automation tools often help with this scoring process. Some companies call qualified leads “MQLs,” which stands for marketing qualified lead.

Account-based marketing (ABM for short) is a bit of a different beast. 

In ABM, sales and marketing focus on targeting a very specific group of companies. They might already know the key people they need to connect with, even if they don’t have them in Salesforce yet. Some companies using ABM might not even use the Lead object at all. It’s a whole different way of thinking about sales and marketing.

The good news is, with a bit of planning and teamwork, you can sort out the Lead and Contact confusion for your own business. Now, let’s look at where to start.

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Remember how we said that every company handles Leads and Contacts a little differently? Figuring out the best way for your business is super important. It’s time to take a close look at how things work in your own Salesforce world.

Here are some key things to keep in mind:

• Are You the Team Lead? Some companies don’t even use Leads, especially those doing Account-Based Marketing. Do you have any Leads in your database?
• What Makes the Switch? When exactly does your company convert a Lead to a Contact? Does there need to be a meeting? An email conversation? It’s important to have clear rules on the conversion process that your team agrees on.
• Who’s in Charge? Salesforce has something called “Lead Assignment Rules.” They decide who on your team gets assigned new Leads. Understanding this helps you know who to talk to if you have questions.
• Quick Conversions: Are there some Leads that should become Contacts right away? If existing customers fill out forms, or your own employees do, they don’t need to sit around as Leads.
• Taking Out the Trash: What about Leads that will NEVER become customers, like competitors or students? Do you have a way of deleting or marking them so you don’t get confused?
• The Marketing Angle: How does your marketing team work with Leads? Do they have a special system in place, or follow a set process to nurture those Leads until they’re ready for sales?
• Data Checkup: How healthy is your Lead data? Is it up-to-date and accurate? Or do you have a pile of old, outdated Leads taking up space? Doing a data quality check can be very eye-opening.

Once you have a handle on all these questions, it’s time to put things in order. Here are some things to think about:

• Talk to Your Team: Sales reps, marketing folks, and maybe even your Salesforce admin should all have a say in the process. Making these decisions together builds trust.
• Document It: Write down any rules you decide on — when to convert Leads, how marketing uses them, etc. Having written instructions keeps everyone on the same page.
• Don’t Be Afraid to Change: As your company grows, your Salesforce setup might need to change, too. Regularly review your Lead practices to make sure they’re still working.

By taking the time to figure out your own system, you’ll streamline your sales process, keep your data clean, and make the most of Salesforce.

We’ve covered a lot about Leads and Contacts, but let’s not forget those little details that can make a big difference. 

Sometimes, the little details make the biggest difference. Before we wrap up, keep these important things in mind:

• No Going Back: Once you hit that ”Convert” button in Salesforce, your Lead transforms into a Contact. It’s a one-way street, so make sure your team is sure the Lead is qualified.
• Different Strokes: Not every company has to use Leads. There are other ways to manage prospects in Salesforce. It’s all about finding what fits your business best.

While they may seem simple on the surface, Leads and Contacts are vital building blocks within your Salesforce CRM system. Using them wisely and strategically is key to organizing your sales data and turning those initial connections into lasting customer relationships.

Pro Tips for Mastering Leads and Contacts

Ready to level up your Lead and Contact game? These pro tips are designed to smooth your sales process and maximize the power of Salesforce:

• Clean Data Means Happy Salespeople: If your system is full of old, incorrect Leads, it makes it harder for sales reps to find the good ones. Set aside time regularly to clean out outdated or unqualified stuff. A little effort here goes a long way.
• Communication Matters: Does your marketing team have a special process for warming up leads before passing them to sales? Is there a specific lead score to hit or actions the Lead needs to take? Keep this communication open, smooth, and clear.
• Automation: Explore marketing automation tools and Salesforce features to automatically qualify and nurture Leads. This takes some of the manual work off your team, letting them focus on building strong customer relationships.

One of the awesome things about Salesforce is its flexibility. While Leads and Contacts might seem confusing at first, they’re actually powerful tools you can shape to fit your specific business needs.

Salesforce is an amazing tool to help you keep track of your relationships with potential customers. By taking the time to understand Leads and Contacts, you’ll streamline your sales, make your marketing efforts count, and grow your business faster.

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