The term "qualified lead" refers to how ready a potential customer is to be sold to. There are several types of qualified leads - for example…
Information Qualified Leads - customers who are ready to learn about an offer
Marketing Qualified Leads - customers who are ready to be marketed to
Sales Qualified Leads - customers who are ready to be sold to
Each type of qualified lead corresponds to a stage in the sales funnel. Understanding and indicating where a customer is ensures a successful sales process. It can also help improve sales strategies and ensure resources are allocated effectively.
What Is a Qualified Lead?
A qualified lead is a prospect who has shown a certain level of interest in your offer. They are often labeled as such in Customer Relationship Management (CRM) software. Each kind of qualified lead matches specific criteria set by a business.
For example, an Information Qualified Lead could be anyone who’s a prospective customer. An MQL may be someone who’s signed up to receive information on an ongoing basis.
Leads that align with these set prerequisites are more likely to convert at each stage of the sales funnel. Leads with particularly high scores may align with our ideal customer profile.
The Importance of Lead Qualification
Lead qualification is a critical step in the sales process. It will often fall to the account executive or sales team members. By distinguishing between qualified and unqualified leads:
- Sales teams can focus on leads with the highest potential return on investment.
- Reduce the time and resources spent on prospects that are unlikely to convert.
- Convert more customers by sending the right messages at the right time.
The Role of Marketing in Lead Qualification
Marketing plays a pivotal role in the initial stages of lead qualification. It’s where the customer journey begins. Going from “stranger” to IQL or MQL often happens pre-sales via marketing channels. Here’s an example of how this might go:
- Paid campaigns, content, and automated follow-ups can all attract and nurture IQLs. These tactics are often implemented across multiple channels, e.g. email, social media, and your website.
- Once leads show a certain level of interest, they're categorized as Marketing Qualified Leads (MQLs). This indicates prospects have engaged with your marketing efforts but don’t yet have a strong intent to buy.
- Once an MQL exhibits buying signals, they are handed over to a salesperson. The salesperson will either sell to them immediately or work to turn them into a Sales Qualified Lead (SQL).
Lead Scoring: A Quantitative Approach
Lead scoring is used to rank prospects against a scale that represents perceived value.
The numerical values of this scale are assigned to specific actions or characteristics. Website visits, content downloads, and job titles are some examples of this.
These values allow businesses to quantitatively determine which leads are most likely to convert. CRMs like HubSpot and Salesforce can automate this process. This way, it’s easy to categorize and score leads at scale.
Lead Nurturing: From MQL to SQL
Transitioning a prospect from an MQL to an SQL is where lead nurturing really comes into play.
Targeted content, information, and interactions can get prospects closer to a buying decision. Lead nurturing is designed to build trust, establish authority, and address any questions a potential customer might have.
Quality nurturing ensures that by the time a prospect reaches the sales team, they're well-informed, engaged, and ready to convert.
