Lead Validation ROI in Plain English: Save Thousands per Month; Get 5.8 days ROI

A recent study by Marketing Sherpa found that when filling out web forms less than 40% of those surveyed provided accurate phone number and custom information—such as address—all of the time. The reality is most people are reluctant to give up their precious contact information when doing research or filling out requests for information. More often than not, the data is inaccurate, incomplete or fraudulent.

Where does this leave marketers, sales managers and lead generators? It leaves them sifting through mountains of contact data with the hope of isolating the true and valid leads that will bring more revenue to the bottom line. According to the Direct Marketing Association, 93% of marketers cite contact data quality as one of their most important issues.

Implementing a lead validation or verification solution is one way marketers and business managers can improve lead quality in real-time and at the source, and ultimately save money by shifting focus to high scoring leads, fixing questionable leads and discarding downright bad leads. 

Do the Math-
Here is a simple calculation showing where businesses save money by validating their leads:

Let’s say your business generates 100 leads per day or around 3,000 per month. 20% or 600 of those leads turn out to be bogus or bad leads. If your telesales team spends around 5 minutes per call and calls each lead an average of 3 times before qualifying and discarding bad leads, that is 15 minutes per lead. At $23/per hour that’s about $5.75 per lead—or $5.75 wasted on pursuing a lead that was ultimately determined to be bad. Multiply that by the estimated 600 bad leads per month and that’s $3,450 per month wasted telesales resources. Using a service like DOTS Lead Validation℠ will validate leads in real-time, before they arrive at telesales, and costs only about $.22 per lead or around $678/month for 3,000 transactions.

That is a savings of $2,772/month-with an ROI on the use of the Lead Validation solution in about 5.8 days.

In a nutshell, lead validation works by:

Validating whether the contact information is real. Is it a real address? Does 100 Main Street actually exist in the zip code provided?
Verifying that the contact name or business is associated or linked with the address, phone number and even IP Address provided.
Correcting address, city, state, and email elements as needed to make the lead data as complete as possible.
Scoring the lead based on the quality of data. Estimating the quality of data entails not only a check on data correctness as entered but quality as established through a method of proprietary checking and sophisticated cross correlation of supplied data with other data sources. An overall score is provided based on the quality of the pieces of contact information such as name, business name, email, IP address, phone number and street address. Recommending that you Accept, Reject or Review the lead.

Download our case study for more details on how DOTS Lead Validation can save your business money today!

Posted by Gretchen N.

Comments (2)

  • Avatar

    ne tik seo


    Huh, who spends 15 min on calling bad lead?? If there is no answer you spend max 1 min, if there is an answer and they say wrong number or I didn’t enquire it’s also 1-2 min call…

    So calculations should be as follows:
    3 min of telesales time
    $1.15 per lead (at $23/hr)
    $690 per month
    Which saves $12 per month and not $2772…

    But I’m not saying lead validation is bad thing 🙂

  • Avatar

    Dave Swan


    In response to the comment regarding 3 min. time, thanks for the comment, however, the assumptions you are making to come up with only 3 min. wasted for a bad lead are overly optimistic and may ignore some of the following, which you should factor in.

    1 min. to place call is true if phone number just fails but dialing is not the only time waster, you have to read contact data, dial number, try 3 different times (reasonable attempts for any lead), maybe talk to person answering phone, make correction notes in your CRM and there should be some allocation of normal people cycle overhead.

    Additionally, an invalid phone number is only the case in some instances of bad lead detection and management. Many issues with a corrupted lead are that phone doesn’t match name or address, or that other contact information is out of sync with IP location. Most companies that spend money on a lead do not want to throw it out just because there was some error in phone field entry, especially if the company seems valuable (as in a B2B lead). We have our sales people do some homework on the lead, prior to any full rejection, if there is just a phone field problem. We find that use of lead validation and the correlation of the various data pieces providing lead scoring and selected highlighting of errors in the lead data will allow telesales to spend time on pursuing the highest probable lead and not burn time on manual lead evaluation or bad lead checking (calling, emailing), or CRM updating.

    Also, in some cases bad contact information is an attempt at fraud where phone number may work and connect but other contact information does not cross correlate because the person is attempting to commit fraud. A pre-check on lead resulting in a heads up to telesales will prepare them for this call or indicate they should not waste time on a call.

    The higher the value add of your product or the more focused the source of your leads, the more the above issues become important and the more overall savings, in terms of wasted time and/or wasted lead, will increase through use of a lead validation solution.

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