HubSpot Lead Status is a customizable property within the CRM that helps sales teams classify leads into specific sub-stages based on their level of interest or interaction.
Unlike Lifecycle Stage, which describe the broader buyer’s journey, Lead Status focuses on the finer details of where a lead stands in the sales pipeline.
Let’s dive into exactly why – and how – to use this invaluable tool.
HubSpot Lead Status Definitions
HubSpot comes with a set of default Lead Status options that represent the most common sales scenarios.
- New: Newly acquired leads that require initial outreach.
- Open: Leads that have been contacted, but need further follow-up.
- In Progress: Leads actively being nurtured or engaged by the sales team.
- Open Deal: Leads that have shown strong interest and have an open deal in the pipeline.
- Unqualified: Budget, authority, or need may make some leads unsuitable.
- Attempted to Contact: Leads that have been contacted, but haven’t yet responded.
- Connected: Leads that have responded and engaged with your outreach efforts.
- Bad Timing: Leads that show potential but are not ready to proceed at the moment.
Why Lead Status is Crucial for Sales Teams
By categorizing leads, sales teams can prioritize their efforts, ensuring that time and resources are allocated efficiently. This helps to streamline the sales process by allowing teams to focus on the most promising leads while also identifying those that need nurturing or follow-ups.
Without a well-defined lead status system, sales reps might waste time on leads that are unlikely to convert, while neglecting those that are closer to making a purchasing decision.
Lead Status categorizes sales prospects in a meaningful way that allows your reps to:
- Quickly assess lead readiness for outreach
- Prioritize tasks based on a lead’s current engagement level
- Create a filter for lists, views, and reports
- Track how leads move through statuses and identify bottlenecks
- Automate email follow-ups or task assignments based on status changes
Additionally, lead status helps in tracking performance and forecasting sales more accurately.
It allows sales managers to identify trends, spot bottlenecks in the pipeline, and adjust strategies accordingly.
With up-to-date lead status, managers can coach sales reps more effectively, offering insights on how to handle specific types of leads or close deals faster.
A well-organized lead status system not only improves individual sales productivity but also enhances the overall efficiency of the sales process, contributing to better results and higher revenue generation.
3 Benefits of Tracking and Managing Leads
Tracking and managing leads is a crucial aspect of any successful sales strategy, enabling teams to streamline their efforts and improve conversion rates.
By organizing and analyzing leads, businesses can enhance their approach to targeting, nurturing, and closing deals effectively.
Detailed Segmentation
Tracking and managing leads allows for detailed segmentation, which is essential for crafting personalized messages and communication strategies.
By organizing leads based on factors such as demographics, behaviors, or interaction history, sales teams can tailor their outreach to address specific needs and pain points. This level of personalization increases engagement and enhances the likelihood of conversion, as prospects feel their needs are understood and valued.
Enhanced Reporting
Effective lead management provides valuable insights into lead quality and progression, helping sales teams and managers make data-driven decisions.
With proper tracking, teams can evaluate which lead sources are most productive, identify bottlenecks in the sales process, and understand which strategies are working best.
Enhanced reporting ultimately leads to better performance forecasting, ensuring resources are allocated effectively to maximize results.
Improved Lead Nurturing
By tracking leads over time, sales teams can develop more effective nurturing strategies, keeping leads engaged throughout the buying journey. This allows sales reps to create tailored content and touchpoints, guiding prospects toward conversion at a pace that suits their readiness.
By nurturing leads with relevant, timely interactions, sales teams increase the likelihood of successfully closing deals, while reducing the chances of prospects falling off or losing interest.
How Lead Status Management Impacts Sales Performance
By keeping track of where each lead stands in the sales journey, businesses can improve collaboration, reduce lead leakage, and ultimately boost conversion rates.
Reduced Lead Leakage
Proper lead status management ensures that no prospect falls through the cracks, reducing lead leakage. By tracking where each lead is in the sales process, sales teams can ensure timely follow-ups and avoid letting promising leads go cold.
This proactive approach prevents missed opportunities, ensuring that every lead is attended to appropriately, ultimately improving the efficiency of the sales cycle and increasing the chances of conversion.
Enhanced Collaboration
Managing lead statuses fosters better alignment between sales and marketing teams, as both departments can track and communicate effectively about lead progress. With consistent updates on lead status, marketing teams can adjust their campaigns based on real-time feedback, ensuring they target the right prospects with the right messaging.
This collaboration creates a more cohesive and unified approach to lead generation and conversion, improving overall sales performance.
Boosted Conversion Rates
By managing lead status effectively, sales teams can tailor their outreach to the specific needs of each prospect. Leads in different stages of the funnel require different approaches, and with an organized system in place, sales reps can deliver targeted, timely actions that resonate with each lead.
Whether it’s a nurturing email, a follow-up call, or a special offer, this personalized approach can significantly boost conversion rates, as leads feel they are being supported according to their readiness to buy.
Custom HubSpot Lead Statuses
For many teams, the default Lead Status options are sufficient. Custom statuses are ideal for a sales team to use when:
- The default statuses don’t align with the sales stages
- More granular tracking is needed to better manage complex sales cycles
- Specific indicators are in place for specialized lead handling
HubSpot allows you to create custom lead statuses to align with your unique sales process and marketing strategy. Three common custom categories for the Lead Status in HubSpot are:
- Follow-Up Required
- Proposal Sent
- Awaiting Decision
To set up your own custom Lead Status options, use these instructions:
- Navigate to Settings in your HubSpot portal
- Select Properties from the Settings menu and search for "Lead Status”
- Click Edit to add, modify, or delete statuses
- Assign new statuses to leads as appropriate
If you’re struggling to create and utilize Lead Statuses effectively, a full service marketing agency can assist you establish the right Lead Status categories for the specific sales cycles of your business.
Common Challenges (And How to Solve Them!)
Incorrect Status Assignments
One of the most common issues with lead status management is incorrect status assignments, often caused by inconsistent or unclear criteria for classifying leads. This can result in valuable leads being overlooked or miscategorized, which hinders follow-up efforts and negatively impacts conversion rates.
To address this, sales teams should establish clear guidelines and regular audits to ensure leads are accurately assigned to the right status, improving efficiency and ensuring no opportunities are missed.
Overcomplicated Customization
While customizing lead statuses can provide flexibility, too many custom statuses can create confusion for users and complicate the process. When there are too many categories or unclear distinctions between statuses, sales teams may struggle to navigate the system and mismanage leads.
To resolve this, it’s important to streamline lead statuses by focusing on key stages of the sales funnel and ensuring that each status is distinct and easy to understand, reducing complexity and increasing user adoption.
Lack of Training
Even the most effective lead status system can fail if teams aren't properly trained on how to use it. Without adequate training, sales teams may not fully understand the importance of accurately tracking lead statuses, leading to inconsistent updates and missed opportunities.
A solution is to invest in comprehensive onboarding and ongoing training for all team members, ensuring that everyone understands the system’s functionality, the impact of lead status management, and how it contributes to overall sales success.
Best Practices for Effective Lead Status Management
By following a few simple strategies, sales teams can streamline their workflows, improve accuracy, and drive better results in their lead conversion efforts.
- Keep It Simple: Use clear and concise status in HubSpot to avoid confusion.
- Standardize Criteria: Define rules for transitioning between statuses.
- Train Your Team: Ensure everyone understands the purpose and usage of a Lead Status.
- Leverage Automation: Use HubSpot custom integration and automation tools to manage status changes efficiently.
- Review Regularly: Periodically assess and refine your Lead Status in HubSpot to match evolving business needs.
Conclusion
By implementing HubSpot Lead Status effectively, your sales team can unlock its full potential, fostering better lead management and driving measurable results. Are you ready to see how it can support your sales efforts? Contact us today!
