In business, everything boils down to sales and revenue.
At the decision-making level, the number of leads doesn’t matter.
You might have generated a thousand leads. However, what counts is how much of them you could convert from prospect to revenue.
Blunt, but that’s how it is!
However, transforming prospects into revenue is a lengthy and strategic process.
As a business, you cannot expect every lead to convert revenue.
But how do you know a lead can move from marketing engagement to sales conversion?
The answer is Sales Qualified Leads (SQLs) – the bridge between your marketing efforts and revenue generation.
So, let’s understand how SQLs are different from other leads, and how you can identify them and optimize the conversion rates in this blog.
Marketing Qualified Leads vs. Sales Qualified Leads: Key Differences
Not every lead you receive is equal. While some are Marketing Qualified Leads (MQLs), a few are Sales Qualified Leads (SQLs). The difference between both? While both are potential customers, they differ in their level of engagement and preparedness to buy.
MQLs: They have shown interest in your brand. However, they aren’t yet prepared to convert into a sale. They may have attended your webinar, downloaded a report, subscribed to your newsletter, etc. However, they are still a little away from a purchase.
SQLs: They have demonstrated a solid buying intent and fulfill specific criteria that indicate they are prepared to be approached for sale. It may mean that they have filled out a pricing inquiry, asked for a quote, requested a product demo, or engaged in a more fruitful conversation with your sales representatives. In short, they are strongly indicating that they want to buy your offering, through their actions!
A lead’s transition from MQL to SQL is very crucial. Hand over a lead too early – the sales team will spend more time on a prospect who isn’t yet ready. Delay the handover too much, you may lose the lead to your competitor!
How to Define and Score Sales Qualified Leads for Sales Efficiency?
Chasing the right and qualified leads is vital to be able to tap into them in time. However, how do you if a lead is qualified and worthy of a chase? The answer lies in the way you define and score SQLs for sales efficiency. Let’s delve a little more.
- Demographic Match: Does the lead match your ideal customer profile (ICP)
- Intent Data: Are the leads researching solutions similar to yours? Have they recently visited pricing pages or compared features of your competitors?
- Engagement Level: Are they responding to emails, attending follow-up calls, or willing to engage in meaningful discussions with your salespeople?
- Budget and Authority: Do the leads have decision-making power and a budget aligned with your pricing model? Is there a point in chasing the lead from the commercial viewpoint?
- Behavioral Signals: Is the lead engaging with sales-based content, asked for a product demo, or initiated contact with one of your representatives?
You can assign scores to every parameter to see which leads qualify and which ones should you prioritize while setting appointments or taking conversations ahead.
The Role of Lead Nurturing in Converting MQLs to SQLs Faster
Leads can slip out of your hands faster than you think! Hence, amidst the competitive environment, you must nurture a lead to keep them engaged with you while making conscious efforts to convert them from an MQL to SQL. Some steps in this regard include,
- Personalized Emails: Send targeted content based on the lead’s behavior and interests to stay connected with them and keep them engaged.
- Webinars and Case Studies: Arrange webinars and prepare case studies to provide leads with valuable insights into your offerings and show practical proof of the tangible benefits of your solutions.
- Timely and Strategic Follow-ups: Leverage automated workflows to ensure sales reps engage with warm leads at the right and strategic moments.
- Retargeting Campaigns: Use digital ads to keep your brand on top of the prospect’s mind and encourage engagement.
Read more in detail about Sales Qualified Leads in this blog – What Strategies Can Help You Generate More Sales Qualified Leads?
Common Mistakes Companies Make When Identifying SQLs
Often, companies struggle to identify SQLs. As a result, they chase the wrong leads and end up gaining nothing but wasting time. Here are some common mistakes you must avoid while identifying SQLs.
- Depending on a Single Indicator: Merely because a lead has attended a webinar or downloaded a whitepaper doesn’t mean they are prepared to buy.
- Inadequate Sales-Marketing Alignment: Disagreements between the sales and marketing team over SQL criteria can delay things and cost you opportunities.
- Poor Lead Scoring System: Many companies do not have a proper lead scoring system that can help them identify an SQL.
- No Follow-Ups: Sales conversions take time. Often, companies give up on leads after a certain period. Staying engaged is key amidst competition!
- Delays in Acting: You cannot take forever while connecting with SQLs but connect with them while they are warm. Otherwise, losing them to competitors is evident!
Leveraging Intent Data to Identify and Prioritize High-Quality SQLs
Intent data provides critical insights into a lead’s preparedness to buy. You can use the intent data for multiple purposes. These can include tracking the lead’s online behavior, monitoring third-party signals, and engaging with the leads at the right time. Integrating intent data into your lead qualification process can help you point out premium SQLs with accuracy and ensure sales teams focus on leads with the highest potential.
Get Comprehensive Strategic Help – Convert More Prospects into Revenue with Us!
DemandFluence understands just how important every potential opportunity is. In an age where quality leads are hard to come by, you cannot lose leads to your competitors for nothing! Our strategic assistance and market intelligence help companies tap into the right leads and convert more prospects into revenue. We help you set systems and workflows that help you identify the right leads with the potential to convert and generate business.
Want to know more? Email us at hi@demandfluence.com.
