Lead qualification is a crucial part of executing a go-to-market strategy. It helps prioritize your sales team’s time, teaches you about which marketing activities and channels are bringing in the highest volume of leads that match your ideal customer profile (ICP), and helps you predict revenue outcomes.
There are typically a few different qualifications that happen throughout the sales funnel. Each one plays a slightly different role and marks a level of confidence that the lead will convert. In this article, we’re going to look at what a sales-qualified lead (SQL) is, how they compare to a marketing-qualified lead (MQL) and a sales-accepted lead (SAL), and share tips for lead qualification.
What is a sales-qualified lead?
A sales-qualified lead (SQL) is a prospect who has been passed from marketing to sales, accepted by sales, and qualified by the sales team after meeting the specific criteria outlined by the business.
When a prospect reaches SQL status, they are considered to be a fit for the business and show clear intent to make a purchase — it is the last qualification stage before a prospect converts and becomes a customer.
What is the difference between an SQL and MQL?
A marketing qualified lead (MQL) is a lead the marketing team has determined to be more likely to convert than other leads. This typically happens when the lead aligns with the company’s ideal customer profile (ICP) and has deliberately engaged with marketing activities like webinars, lead nurture emails, or content.
An MQL becomes an SQL when the lead has been vetted by your sales team and identified as being in a ready-to-buy phase. In some cases, there is a step between these two things — an MQL will first become a sales accepted lead (SAL) after a member of the sales team reviews their details and accepts them as a lead. A SAL can then go on to speak to a sales team member who will speak to the lead and qualify them as an SQL.
For some organizations the SAL stage is unnecessary. But when the volume of leads is high or you are facing lead quality issues, this formal acceptance stage can help marketing identify where low-quality leads are coming in or fix issues with leads (for example, data issues). It can also create a culture of accountability, where marketing is responsible for bringing in quality leads and sales reps have a concrete deadline for lead follow-up.
How to qualify leads in sales
Whether your sales team is working with MQLs or SALs, they will need a criteria and process for qualifying the leads — and a process for prioritizing leads based on that qualification.
When qualifying leads, sales are ultimately looking to learn:
Interest level: Has the lead shown interest in your product or service?
Engagement level: Has the lead actively engaged with your marketing material?
Budget: Is your product or service within their budget?
Authority: Does the prospect have authority to buy? If not, do they have indirect authority or influence over the authoritative figure?
Fit: Does the lead fit your ICP? Does their profile match or closely resemble that of your existing customers?
Need: Does the lead have an active need for the product or service? Are they facing the specific problem your product or service solves?
There are several different methodologies sales teams use to get this information and qualify the lead. Some of the most common are:
BANT: Budget, Authority, Need and Timeline
CHAMP: Challenges, Authority, Money and Prioritization
ANUM: Authority, Need, Urgency, and Money
MEDDIC: Metrics, Economic Buyer, Decision Criteria, Decision Process, Identify Pain, and Champion
FAINT: Funds, Authority, Interest, Need and Timing
As you can see, these methodologies have a lot in common and, because of this, there’s no one right answer. Choose the one that helps your sales team extract the most important pieces of information, then use it consistently to ensure leads are properly vetted against one another and the data given back to the marketing team is accurate.
Qualification is most reliable when the information is gathered on a phone call or a meeting. This allows sales reps to ask follow-up questions which can help with further qualification and to ensure the next meeting is productive for all parties.
That said, in some sales cycles, industries, or products and services a qualifying call will add too much friction to your lead’s experience. In those cases, you can use data in a lead scoring model and online surveys to qualify leads for sales teams before the first meeting happens. The benefit of this approach is that your sales rep will come to a meeting fully prepared to speak to the lead’s situation and goals.
Transitioning MQLs to SQLs
There are a few steps involved when moving a lead from MQL to SQL, each of which gives your sales team new information.
1. Acceptance
Some teams have an acceptance step between MQL and SQL. This typically means the marketing and sales team has briefly reviewed the MQL and confirmed they are a valid lead worth further evaluation.
The accepted phase is about identifying the lead as genuine and worth sales efforts. Qualification is about readiness to buy. In other words, all sales accepted leads will be entered into the sales team’s pipe, but only those who are qualified will be prioritized for outreach.
2. Scoring
Lead scoring is one of the most common ways marketing and sales teams qualify prospects. It involves a set of criteria, based on demographic and behavioral data points, with assigned weighting. This criteria is used to assign a total score to the lead which helps marketing and sales quickly identify how qualified they are.
By the time a lead is ready to be transitioned, it has already been identified as a MQL through a similar scoring process with a different set of criteria. Now, the lead will be assessed on new criteria to assess sales-readiness.
This will likely include behavioral data that assess the lead’s level of engagement and whether they are showing signs of intent. There may be some other criteria to assess authority to buy, for example, the individual’s title or seniority in an organization.
3. Likelihood to buy
Whether it’s BANT, FAINT, CHAMP, or another sales methodology your team has chosen to adopt, the idea here is to gather more information on budget, need, and timeline, and to fill in any gaps on authority.
Evaluating a prospect at this stage usually requires a phone call or meeting. Even the act of taking the meeting can be considered an indicator that the prospect is serious and has a need for the product or service you offer. In some cases, a survey or email can help sales gather enough information to qualify the lead and move on to the next step if the evaluation is positive.
With all this information in hand, sales can prioritize leads, marketing can assess where the most quality leads are coming from, and the two teams can work together to drive meaningful growth for the business.
Final word
Qualifying your leads throughout the sales process is important to focus efforts, learn which marketing channels and tactics are generating the most high-quality, ready-to-buy leads, and more accurately forecast. Success here requires ongoing collaboration between the sales and marketing teams and an openness to challenging existing processes in the name of continuous improvement.
