February 06, 2022
You know that old saying, “time is money”? It’s true. The more time you spend chasing bad leads, the less time you have for good ones. That’s why it’s important to set criteria for what makes a lead worth pursuing. Lead qualification is critical to the success of your overall lead generation strategy. This will help you focus your efforts on leads that will likely result in a sale and save you time and money.
A ‘qualified lead’ is one that you can reasonably expect to make a purchase in the near future. This means they must have the budget and be likely to spend it on your product or service. What is their purchasing history like? If you provide a service for businesses – are their competitors also potential to be your target clients? These are all questions that need answering before you can tell if a lead is worth pursuing.
A ‘qualified lead’ has the potential to turn into a paying customer, but that doesn’t necessarily mean they will. You need to find out why they are interested in your product or service – are they just curious? Are they looking for information before making their decision?
But how do you figure out if someone is qualified? Some simple questions can tell whether or not they’re worth pursuing:
Asking yourself these questions can help you figure out whether or not contact with a lead is worth pursuing and is essential for prioritizing your potential leads.
When you’re pursuing new business, it’s important to focus your efforts on leads that have the potential to turn into paying customers. Qualified leads meet specific criteria that you set, indicating a higher chance of converting into sales. This allows you to narrow your focus and pursue opportunities that are most likely to bear fruit.
There are several benefits to qualifying your leads:
When you’re setting criteria for what makes a lead qualified, it’s important to consider the role that each customer adopts. For example, when selling food to restaurants, you’d look for different factors compared to when selling food to individuals. That said, some common elements can be beneficial across all business types. Here are a few that can be helpful to consider.
As a business owner, a marketer, or a salesperson, you know that a sale is all about relationships. You have likely experienced firsthand how important it is to build rapport with your customer base and maintain open communication with them. This can be especially true when it comes to new leads – if they aren’t willing to share information about their company or if they aren’t ready to engage with you, it may not be worth your time and energy to pursue them.
In an effort to save time and money on wasted leads, many companies have begun setting criteria for what makes a lead worthwhile. In other words, they are defining what qualifies as a “qualified lead.”
When pursuing potential customers, it’s important to qualify them to make sure they are worth your time. Here are a few tips for doing just that:
A clear definition of what makes a lead worth pursuing is a critical first step in focusing your efforts, saving you time and money.
A lead funnel is a process that companies use to convert leads into paying customers. The lead funnel usually involves acquiring leads through various marketing channels, such as online advertisements or email campaigns. Once leads are acquired, the next step is to qualify them by determining whether they are a good fit for the company’s products or services. Only qualified leads are then passed on to the sales team, who will attempt to close the sale. If the sale is successful, the customer becomes a paying customer. If not, the lead is either disqualified or passed back to marketing to be re-qualified.
The lead funnel is an integral part of any company’s sales process and should be designed to convert as many leads as possible into paying customers.
Typically most lead funnels use three definitions:
A Marketing Qualified Lead (MQL) is a potential customer identified as a result of marketing efforts and meets predetermined criteria that signify their potential to become a customer.
An MQL can be generated in many ways, such as through website visits, lead forms, or other marketing interactions. Once an MQL has been identified, it is then passed on to Sales for further qualification.
For example, if a company wants to generate leads through its website, it will implement specific CTAs (calls-to-action) that encourage people to subscribe to their newsletter. If someone subscribes, this will signify an MQL. It is up to Sales to determine whether or not they can convert the lead into a customer.
The main difference between a lead and an MQL is that a lead is an individual, whereas the MQL can become a customer through further interactions with Sales. MQLs can also be referred to as “leads” in some companies because they are often generated from marketing efforts. That being said, the two are not the same thing.
A Sales Accepted Lead (SAL) is a lead that has been qualified by the sales team as likely to buy a product or service and where the deal has been accepted by those involved in the process. For example, your prospect might have signed off on an agreement or proposal currently being worked up by legal or the IT department.
Sales accepted lead (SAL) is a necessary step in the entire sales process, and it’s also one of the most difficult because this requires that someone has already agreed to buy something at some point in time and then finalized the agreement. Also, it would be best if you qualified your leads through all stages, but you also need to know once the lead is SAL.
A Sales Qualified Lead (SQL) is a lead that the sales team has qualified as being likely to buy a product or service. Arguably the most important stage of your lead qualification stages. The qualification process usually involves determining whether the lead has a need for the product or service and whether the lead is budget-approved and has the authority to make a purchase.
Conclusion? It would help if you used all: MQL, SAL, and SQL stages in your qualification process, as not all leads will reach the SAL stage straight away. It depends on many factors, including their ability to afford what you are selling, authority level within the company, budgeting cycles, etc.
Converting leads into customers is essential for any business. There are several ways to do this and increase your chances of success, and the method you choose will depend on your business and its customers. Some standard methods include offering a discount to customers who purchase within a specific timeframe, providing a free trial or sample, or giving a gift with purchase. Whatever way you choose, make sure it’s something your customers will value.
However, again, you need to start with “good” leads to boost your results.
There are several things you can do to generate more leads, including:
The challenge, of course, is to find out who’s willing to buy what you’re selling and who isn’t interested in your products or services. That said, some factors can help you determine which leads are qualified for business development. To learn more, read our detailed guide on B2B lead generation.
Lead qualification is a complicated process with many benefits. Lead qualification can help you:
They are likely to convert into a customer with the right strategy and continued effort on your part.
The most important takeaway we want readers to have is that lead qualification should be considered an investment in growing your bottom line rather than just another cost-cutting measure like it’s often seen by small businesses who don’t know any better.
If you’re looking for expert assistance on creating a successful lead generation strategy or making sure yours qualifies all leads correctly, contact us today!
SeeResponse is a full-service B2B marketing agency and a HubSpot Solutions Partner offering a range of marketing services through its team of marketing and demand generation experts. Our focus is on helping startups and larger companies grow through a combination of strategy, email marketing, demand generation, and marketing automation.