Following a lead qualification guide properly is key to getting qualified leads.
But why do you need qualified leads?
Every qualified lead is a potential future customer sitting there in plain sight. That means they match your ICP and your criteria for business requirements.
In this article, you’ll learn everything you need about qualified leads.
What is a Qualified Lead?
A qualified lead is a prospect who has shown interest and meets your predefined criteria, which indicates a higher likelihood of becoming a customer.
Qualified leads have demonstrated specific intent and fit the ideal customer profile, unlike other leads, which may simply express a broad interest.
Sales and marketing teams typically work together to set the criteria and qualify leads.
This often involves evaluating a lead’s readiness to buy, budget, authority, need, and timing (often referred to as BANT).
Qualified leads are valuable because they have a higher chance of conversion, meaning they are more likely to result in a sale.
Focusing on qualified leads allows businesses to allocate their resources more efficiently. This targeted approach increases the overall effectiveness of the sales process.
As a result, you make more conversions and boost your revenue.
Qualified Leads: A Breakdown
Qualified leads are potential customers who are worthwhile targets for sales and marketing efforts. Depending on the category, you nurture and engage qualified leads differently.
Generally, qualified leads are classified into three main categories:
1. Marketing Qualified Leads (MQLs)
MQLs are identified by the marketing team as having shown potential interest in your offering. They’ve engaged with marketing content like:
- Downloading ebooks, white papers, or case studies
- Attending webinars or online events
- Signing up for email newsletters
- Visiting specific pages on your website (e.g., pricing, product pages)
- Filling out forms (e.g., contact forms, demo requests)
Key characteristics of MQLs are:
- Demonstrated interest in your brand or industry
- Fit your ideal customer profile (ICP)
- Not yet ready for a direct sales conversation
To nurture MQLs, you can send personalized email sequences, create blog posts and articles, offer free trials and demos, increase your LinkedIn presence, and share case studies and testimonials.
2. Sales Qualified Leads (SQLs)
SQLs are those leads who are ready for a direct sales conversation with the sales team.
Normally, they’ve shown stronger indications of purchase intent, such as:
- Requesting a demo or quote
- Inquiring about pricing or packages
- Engaging in direct conversations with sales representatives
Key characteristics of SQLs are:
- Meet the criteria of budget, authority, need, and timing (BANT) or similar frameworks
- Have a clear need for your product or service
- Are actively researching solutions
- Are likely to make a purchase decision soon
It’s important to prioritize SQL-qualified leads for things like personalized product demonstrations, direct sales calls, and meetings, addressing specific concerns and objections, or negotiating and closing deals.
3. Product Qualified Leads (PQLs)
PQLs are leads who have experienced your product firsthand (e.g., through a free trial, freemium version, or limited-time access).
They’ve already demonstrated value by:
- Actively using key product features
- Achieving specific milestones within the product
- Reaching certain usage thresholds
Key characteristics of PQLs are:
- Have experienced the value of your product firsthand
- Are likely to become paying customers
- Require less sales intervention compared to other leads
When qualifying PQL leads, you must focus on onboarding PQLs, highlighting premium features and benefits, offering personalized support and guidance, streamlining the upgrade process.
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