Marketing Qualified Lead (MQL)
MQL refers to a person or business that has shown interest in your marketing efforts and has the potential to become a customer through further nurturing. These leads typically engage with your website, click on ads, attend webinars or download content such as eBooks/case studies/whitepapers while filling out forms, suggesting they are in the early stages of the marketing funnel. A lead form is an online form that collects information from potential leads or prospects who are interested in your product or service. The purpose of a lead form is to capture contact details and other relevant data to initiate further communication and potentially convert the lead into a customer. Although their actions may not directly indicate immediate purchase intent, they signify that they are at the initial stages of the marketing funnel and may be receptive to learning more about your brand, product or services.
Sales Qualified Lead (SQL)
An SQL is a contact or business that has demonstrated buying intent and is actively considering your organisation as a potential solution provider. These leads have typically engaged with your brand multiple times and have shown interest in more advanced content such as case studies, product comparisons and pricing information.
To be classified as an SQL, the lead typically possesses the necessary information to make a purchasing decision, has the budget and resources required for the purchase and has obtained executive buy-in within their organisation. Once an MQL has met these criteria, the marketing team determines that it is appropriate to pass the lead to the sales team for further nurturing through the bottom of the sales funnel. At this stage, one-on-one consultations with sales representatives can effectively convert these leads into revenue opportunities.
Difference between an MQL and SQL
Category | Marketing Qualified Lead (MQL) | Sales Qualified Lead (SQL) |
|---|---|---|
Definition | Leads at the top of the marketing funnel who have shown interest in marketing efforts and have potential for further nurturing. | Leads that have demonstrated buying intent and meet specific criteria indicating they are ready for sales engagement. |
Behaviour | Engages with websites, clicks on ads, attend webinars, downloads relevant content like ebooks, case studies, whitepaper. | Shows interest in advanced content like product comparisons, pricing information. |
Intent Shows | IntentShows potential interest in the brand but may require further information and nurturing. | Displays active interest in considering the company as a solution provider and is closer to making a purchasing decision. |
Handoff | Typically passed from marketing to sales team for further nurturing. | Passed from marketing to sales team for one-on-one consultations and conversion into revenue opportunities. |
Alignment | Requires collaboration between marketing and sales teams to establish lead scoring and qualification criteria. | Enhances alignment between marketing and sales teams, as both work together to identify and convert SQL. |
Focus | Marketing efforts concentrate on educating and nurturing leads in the early stages of the buyer journey. | Sales efforts target leads that have higher buying intent and are more likely to convert. |
Importance of Classifying MQL and SQL :
It saves time and allows the sales team to focus on selling to the right people at the right time. By implementing lead scoring and converting MQL to SQL, your sales team can have more meaningful conversations with qualified prospects.
Tracking MQL and SQL provides valuable insights for your sales and marketing teams, helping them understand what works in bringing leads and how likely they are to convert. It also allows you to evaluate the MQL quality & also effectiveness of your sales team in closing SQL and having meaningful conversations.
MQL to SQL - Key Factors to Consider :
Lead Score
Lead scoring involves ranking a lead's readiness for sales based on assigned points determined by various qualifications and actions they take. Alongside lead behaviour, points can be assigned based on factors such as demographic information, company details, online behaviour, email engagement, subscription status and social engagement level.
For instance, a lead who is a decision maker in a target organisation would receive more points compared to a lead from a junior role. Actions like visiting your website or downloading an e-book would contribute to the lead's score, with different actions carrying different point values.
Utilising lead scoring automation tools can simplify this process. By assigning points to different criteria and behaviours, these tools can track and maintain lead scores for each contact in your system.
Lead Behavior
Lead behaviour refers to the actions and interactions that a prospective customer takes while engaging with your brand. By analysing their behaviour, such as website visits, social media interactions and form submissions, you can gain insights into their position in the buyer journey.
Tracking and analysing lead behaviour allows you to understand:
Page visits: Examining the specific pages a lead has visited and the sequence in which they engaged with your content can indicate their interests and level of engagement.
Website interaction time: The amount of time a lead spends on your website can provide an indication of their level of interest and engagement.
Form submissions: Analysing the forms filled out by leads can give insights into their willingness to provide information and engage in further interactions.
By evaluating lead behaviour, you can determine if the lead aligns with your buyer personas and has the potential to become an SQL (Sales Qualified Lead).
In addition to analysing lead behaviour, the BANT (Budget, Allocation, Need, Timeline) evaluation system can be used to assess the lead's qualification:
Budget - referring to the financial resources available for the potential purchase or investment.
Authority - the level of decision-making power and influence the lead possesses within their organisation.
Need - specific pain points, challenges, or requirements that the lead is looking to address or solve.
Timeline - indicating the timeframe or urgency within which the lead intends to address their need or make a purchasing decision.
Marketing tools can help automate the tracking and analysis of lead behaviour, making the process more efficient and allowing you to identify qualified leads without manual intervention.
Purchase Propensity
To qualify as an SQL, a lead typically needs to meet certain criteria. These include having a genuine need for your product or service, possessing the budget and infrastructure to make a purchase and your offering should effectively address their pain points. The BANT system is often used as a framework to evaluate lead qualification. However, it is important not to approach this system as a rigid set of questions. Instead, it serves as a guideline to determine if the lead aligns with your target customer profile and is likely to be a qualified prospect. It involves understanding the prospect's budgetary constraints, determining their decision-making authority within the organisation, identifying their specific needs and pain points and establishing the timeline for their purchasing decision.
While using the BANT system, it is crucial to engage in meaningful conversations, map out the key stakeholders involved, uncover the prospect's challenges and ascertain the speed at which their organisation operates. This approach ensures that you are selling to prospects who align with your offering and are more likely to become valuable customers. Once an MQL becomes an SQL, incorporate them into your sales process by using the information gathered during the nurturing phase. Have conversations to understand their story and demonstrate how your product can serve their needs. By effectively differentiating MQL and SQL and integrating them into your sales process, you can increase sales productivity and improve conversion rates.
Conclusion:
Gaining the right data to convert leads into customers is essential for optimising your marketing and sales funnel. It's crucial to have a clear understanding of the distinctions between MQL and SQL and establish a streamlined process for nurturing and transferring leads. We at PixelPulse Digital deliver MQL & SQL for all the business verticals globally, especially for IT/SaaS/Enterprise Businesses. Contact us at enquire@pixelpulse.in