What is a qualified lead?
A qualified lead is a term used in sales and marketing, which describes a potential customer who is determined to buy something.
It is the type of lead that meets the criteria of being a prospect and shows serious interest in a service or product.
After a lead is considered qualified, it is given to the sales team for further nurturing and engagement.
After that, the sales team struggles with converting the qualified leads into customers since they are more likely to buy a product or a service.
Qualified vs unqualified leads
The main difference between qualified and unqualified leads is of likelihood of becoming buyers.
Qualified leads are highly likely to become customers who are assessed according to a specific criterion.
This specific criterion includes a lot of things such as the authority to make decisions, an estimate of money, a timeline for buying products or services, or the requirements related to the what business offers.
Qualified leads show genuine interest in a product or a service and are likely to engage with the business further by moving forward along the sales funnel.
Contrary to this, unqualified leads do not meet this criterion and do not show the likelihood of turning into potential buyers.
These leads do not express genuine interest and do not have much authority or budget to meet the criterion of becoming potential buyers.
Unqualified leads lack the ability to go further along the sales funnel so the sales team does not invest time and resources in converting them into buyers.
However, these leads can be made to engage or nurture through marketing efforts to turn them into qualified leads.
It is carried out by providing unqualified leads with more information, answering their questions, or trying to make a strong connection with the business.
The most common types of qualified leads
The following are the 3 most common types of qualified leads:
Marketing Qualified Leads (MQLs)
These leads are closely assessed according to a specific criterion and are considered potential buyers who have a high chance of engaging with the business in the future.
MQLs show their interest in the business usually by downloading gated content, signing up on the website, getting a subscription, or attending a webinar.
They may not be ready to buy right after their engagement but they indicate their potential to become buyers that require further nurturing from the marketing team.
Sales Qualified Leads (SQLs)
SQLs are also assessed according to a specific criterion and are highly likely to make a purchase even more than marketing qualified leads.
These leads show the next or a more advanced stage of conversion since they show more readiness to buy a product or a service.
Their buying decision is evaluated through their direct communication with a sales representative, sharing their specific needs, confirming their budget, and demonstrating a timeline for buying a product or service.
The sales team struggles with SQLs to lead them through the purchasing journey.
Product Qualified Leads (PQLs)
PQLs are the leads that interact with the product in any way and have very high chances of turning into buyers.
These leads are usually those interested in SaaS (Software-as-a-Service) companies or those businesses that offer free trials for their products.
PQLs might interact with the products by signing up for a free trial, using the feature they allow, or checking out demos.
Any feedback that they give or the way they use a product can be used to evaluate them and the sales team makes the effort to move them further along the sales funnel.
The main difference between SQL and MQL
The difference between an MQL and an SQL is that both have different intent of purchasing or readiness to buy a product or service.
For example, in the software development industry, a lead downloads an introductory book on Python to learn its basics.
This is the initial phase of buying when a person is only in the process of making up their mind about a product after assessing it thoroughly. At this point, the lead will be marketing marketing-qualified lead (MQL).
Another lead who visits a site very often and interacts with the content by participating in webinars and engaging with tutorials is a sales-qualified lead (SQL).
It is because it shows more interest and is close to making the buying decision.
Why Differentiating Between MQLs and SQLs is Important?
Differentiating between MQLs and SQLs is important for several reasons:
Effective lead nurturing
Understanding the difference is necessary because every lead will have different requirements to be fulfilled. They need to be treated and led through the sales funnel according to their specific needs.
For example, MQLs need to be nurtured with the type of content that informs them more about the business and educates them about it.
As for SQLs, they need a more personalised approach which is more sales-focused to encourage leads to convert into buyers.
Resource allocation
By knowing the difference between MQLs and SQLs businesses can better decide their budget and allocate resources likewise.
This makes a business owner spend more resources on the leads that are closer to buying than those who need further nurturing.
Sales productivity
Knowing the distinction between different leads makes the interaction of the sales team more focused on enhancing efficiency.
This leads to enhancing productivity by spending time and resources wisely and catering to the specific needs of the leads.
Customer experience
A tailored approach for nurturing one specific type of lead enhancers customer experience. They expect to have what they want to keep their requirement your priority is the best to improve customer experience.
The content and the type of interaction the customers receive lead them effectively through the sales funnel.
Lifecycle stages of qualified lead
The lifecycle stages of leads follow a sequential flow. It begins with MQLs, representing leads who have shown initial interest.
MQLs then undergo qualification and become SQLs through direct sales engagement. From SQLs, some leads may progress into the lifecycle as Product Qualified Leads PQLs after experiencing the product or service.
Once leads make a purchase, they become customers, and the focus shifts to delivering exceptional experiences, building long-term relationships, and encouraging repeat purchases.
This lifecycle aims to drive growth, nurture customer relationships, and leverage satisfied customers as advocates.
Moving from MQL to SQL
Moving a lead from an MQL to an SQL involves considering several factors and incorporating the leads into your sales process.
Here's how these factors contribute to the transition:
Lead score
Assigning a lead score is a method of quantifying a lead's level of engagement and interest.
By tracking lead interactions, such as website visits, content downloads, email opens, and social media engagement, you can assign points to each action.
When a lead reaches a predefined lead score threshold, it can be considered ready to move from an MQL to an SQL.
A higher lead score indicates a stronger level of engagement and interest, increasing the likelihood of conversion.
Lead behaviour
Analyzing a lead's behaviour and interactions provides valuable insights into their level of intent and readiness to make a purchase.
For example, if a lead consistently engages with bottom-of-funnel content, requests a product demo, or submits specific inquiries about pricing or implementation, these behaviours indicate a higher likelihood of being an SQL.
Monitoring and analyzing lead behaviour helps identify their progression through the buyer's journey and determine when they are ready for sales engagement.
Likelihood to buy
Assessing a lead's likelihood to buy involves evaluating factors such as their industry, company size, budget, authority, and timeline.
By considering these indicators, you can determine if the lead aligns with your target customer profile and if they have the potential to make a purchase in the near future.
Leads showing strong indicators of a buying intent, such as urgent business needs or budget allocation, are more likely to qualify as SQLs.
Incorporating leads into your sales process
Moving a lead from MQL to SQL requires a seamless transition between marketing and sales teams.
Establish clear criteria and handoff processes between the two teams to ensure smooth lead transfer.
This involves effective communication, sharing relevant lead information, and aligning strategies to nurture and engage leads effectively at each stage.
The sales team can then tailor their approach based on the lead's behaviour, intent, and likelihood to buy, focusing on providing personalized solutions and addressing specific pain points.
Conclusion
Qualified leads play a crucial role in the sales and marketing process.
By identifying and distinguishing qualified leads from unqualified ones, businesses can allocate their resources effectively and tailor their strategies to maximize conversion rates.