Qualify a Lead Like a Pro: Tips and Tricks

The lead generation process will provide you with a number of prospective leads, but once a contact has been identified, what do you do next?

What is a Qualified Lead?

A qualified lead is a contact that has gone through qualifying criteria to assess their quality as a lead, their fit as a customer and their readiness to buy. It’s a small but important distinction from a simple ‘lead’, which is a business prospect or 'contact’ that you have not yet qualified through your sales process.

Qualifying leads ensures that, when confronted with a large number of contacts, your marketing and sales teams can determine which leads are most likely to become a customer. Ideally, a lead will make its way down the sales funnel, from a marketing qualified lead (MQL), to a sales qualified lead (SQL) and finally - *fingers crossed* -  to be converted into a customer. Collectively, these all make up the Lifecycle Stages of your company.  

Why is Qualifying a Lead Important?

By implementing SQLs, you are recording and measuring the likelihood of success or failure of your leads, giving you a better insight into all your business data and metrics. You can use this information to more accurately inform the present and future direction of your marketing efforts

By qualifying leads, you are effectively prioritising contacts in a way that allows your sales team to target those most likely to become customers. What’s more,  by implementing Lifecycle Stages, you can begin to gather the kind of information which will help you tailor your business proposition properly, and increase the likelihood of closing the sale. For example, marketers who follow up with web leads within 5 minutes are 9 times more likely to convert them into sales.

To further improve the accuracy and efficiency of your marketing funnel, you can add lead scoring. Lead scoring is the process of assigning value to each lead based on the information you know about them. This score helps determine which leads your marketing and sales team prioritise. For example, you would prioritise a lead that has made a high value action such as filling out high-value forms (i.e. sales demo requests) over a lead that has simply signed up for a newsletter.

So now we know what lead scoring is, and why it’s important. But how is it done?

Explicit Lead Scoring

Every business has its own idea of the ‘ideal customer’. Explicit lead scoring is the process of determining how closely a lead’s profile matches this ideal customer status, using data that you’ve received from the lead directly (i.e. form fill information), such as job title, industry, and location.

By assigning scores to specific values or data sets that indicate the likelihood of conversion, explicit lead scoring helps businesses target the right audience more effectively. For example, if you are selling SMS marketing software, you may score someone with ‘mobile marketing’ in their job title higher than someone with just ‘sales’. This approach ensures that your marketing efforts are focused on leads with a higher potential for conversion, optimizing your resources and increasing the chances of success.  

Implicit Lead Scoring

Rather than estimating how likely a customer is to interact with you, implicit lead scoring measures how much a lead is already aware of your business through observed behaviours and inferred information. Only 4% of website visitors are ready to buy, so it’s vital that you take a closer look at this engagement in order to categorise your leads more accurately. By monitoring indicators like site visits and responsiveness to emails, leads can be ranked in terms of how likely they are to approach you.

Implicit lead scoring follows the train of thought that those leads who are likely to become customers will exhibit certain behaviours indicating their intent to purchase. To implement implicit lead scoring, typically the sales and marketing team would need to review all actions that a lead can take and assign values to those actions. For example, someone who visits your website may be worth 1 point. If they requested a meeting, they may be worth 10. On the flip side, if they failed to respond to the meeting within 7 days they may lose 5 points.

Wrapping up

Lead scoring shouldn’t be just implicit or explicit. If you can, why not use both? By combining both implicit and explicit lead scoring methods, you can gather a comprehensive understanding of your potential clients. Conducting thorough research allows you to gather relevant information about a lead before introducing yourself, reducing the need for extensive questioning during the initial stages. This approach positions you in the best possible position to approach them with an informed and carefully considered proposition, avoiding potential resistance from leads who may be put off by early questioning.

To streamline the identification and tracking process, it is essential to build up data profiles for each lead. These profiles should include contact information, postal address, working hours, and any other qualifying information that will be of use to your sales team. By having a complete and organized data profile, your sales team can effectively prioritize and engage with leads based on their specific needs and preferences.

Implementing a lead scoring model is not a one-time task. It is crucial to regularly review and update the model to ensure its accuracy and effectiveness. Regular reviews, preferably every three months or more frequently if needed, allow you to identify any areas for improvement and make necessary adjustments. If you are facing challenges in closing deals, reviewing your lead score criteria can provide valuable insights and help optimize your lead qualification process for better results.

FAQ

What does it mean to qualify a lead?

Qualifying a lead refers to the process of determining the level of interest and potential of a prospect to become a customer.

Why is lead qualification important?

Lead qualification is important because it helps digital marketers focus their efforts on prospects who are more likely to convert into customers, saving time and resources.

What are the key criteria to consider when qualifying a lead?

When qualifying a lead, it is important to consider factors such as the prospect's budget, authority, need, and timeline (BANT), as well as their fit with your product or service.

How can I effectively qualify a lead?

To effectively qualify a lead, you can use various techniques such as asking targeted questions, analyzing their behavior and engagement, and using lead scoring methods to prioritize leads based on their likelihood to convert.

What tools can I use to assist in lead qualification?

There are several tools available to assist in lead qualification, including customer relationship management (CRM) software, marketing automation platforms, and lead scoring systems.

How often should I re-evaluate and re-qualify leads?

It is recommended to regularly re-evaluate and re-qualify leads, especially if their circumstances or needs change. The frequency of re-qualification can vary depending on your specific business and industry, but a quarterly review is a good starting point.

What are some common challenges in lead qualification?

Some common challenges in lead qualification include incomplete or inaccurate lead data, difficulty in determining a prospect's true level of interest, and aligning sales and marketing teams on lead qualification criteria.

How can I improve my lead qualification process?

To improve your lead qualification process, you can focus on enhancing data quality, aligning sales and marketing teams, implementing lead nurturing strategies, and continuously analyzing and optimizing your qualification criteria.

Can lead qualification be automated?

Yes, lead qualification can be partially or fully automated using tools like marketing automation platforms and artificial intelligence (AI) algorithms. However, it is important to strike a balance between automation and human touch to ensure personalized and effective lead qualification.

What are the benefits of effective lead qualification?

Effective lead qualification can lead to higher conversion rates, improved sales productivity, better alignment between sales and marketing teams, and ultimately, increased revenue and business growth.