How to Identify and Convert Marketing Qualified Leads vs Sales Qualified Leads
If you are in the business of generating leads, you might have heard of the terms marketing qualified lead (MQL) and sales qualified lead (SQL). But what do they mean, and how can you use them to optimize your lead generation and conversion process? In this article, we will explain the difference between MQLs and SQLs, how to identify them, and how to convert them into customers.
KEY TAKEAWAYS
MQLs and SQLs are different types of leads based on their interest and readiness to buy
You can use factors such as lead source, behavior, score, and stage to identify MQLs and SQLs
You need to align your marketing and sales teams, nurture your MQLs, follow up with your SQLs, and close the deal
You can use metrics such as conversion rate, cost per lead, cost per acquisition, ROI, CLV, and CSAT to measure your effectiveness
You can use tools such as analytics, testing, feedback, and automation to optimize your process
What is a Marketing Qualified Lead (MQL)?
A marketing qualified lead is a prospect who has shown interest in your product or service but is not ready to buy yet. They have interacted with your marketing content, such as downloading an ebook, signing up for a webinar, or subscribing to your newsletter. They are aware of their problem and are looking for a solution, but they need more information and nurturing before they make a purchase decision.
What is a Sales Qualified Lead (SQL)?
A sales qualified lead is a prospect who has expressed a clear intent to buy your product or service. They have gone through your marketing funnel, qualified themselves by answering your questions, and requested a demo, a quote, or a free trial. They have a budget, authority, need, and timeline (BANT) for buying, and are ready to talk to a salesperson.
How to Identify MQLs and SQLs
The criteria for identifying MQLs and SQLs may vary depending on your business model, industry, product, and target market. However, there are some common factors that you can use to segment your leads, such as:
- Lead source: Where did the lead come from? Did they find you through organic search, social media, paid ads, referrals, or other channels?
- Lead behavior: What actions did the lead take on your website or landing page? Did they view your pricing page, fill out a form, watch a video, or click on a call-to-action?
- Lead score: How engaged is the lead with your brand? How often do they open your emails, click on your links, or visit your website?
- Lead stage: Where is the lead in your marketing funnel? Are they in the awareness, consideration, or decision stage?
By using these factors, you can assign points to each lead based on their level of interest and readiness. For example, you can give 10 points for downloading an ebook, 20 points for requesting a demo, and 30 points for filling out a BANT form. Then, you can set a threshold for each lead category. For example, you can define an MQL as a lead who has 50 points or more, and an SQL as a lead who has 100 points or more.
How to Convert MQLs into SQLs
Once you have identified your MQLs and SQLs, you need to have a strategy for converting them into customers. Here are some tips for doing that:
- Align your marketing and sales teams: Make sure that your marketing and sales teams have a clear understanding of the definitions and criteria for MQLs and SQLs. Establish a service level agreement (SLA) that specifies how many leads each team is responsible for generating, qualifying, and following up with. Use a CRM system to track and manage your leads throughout the sales cycle.
- Nurture your MQLs: Provide relevant and valuable content to your MQLs that educates them about their problem and your solution. Use email marketing, social media marketing, content marketing, and webinars to build trust and credibility with your prospects. Segment your MQLs based on their interests, needs, pain points, and goals. Personalize your messages and offers based on their behavior and preferences.
- Follow up with your SQLs: Contact your SQLs as soon as possible after they show interest in buying. Use phone calls, emails, or live chat to answer their questions, address their objections, and demonstrate the value of your product or service. Focus on the benefits and outcomes that your solution can provide for them. Use testimonials, case studies, reviews, or referrals to prove your credibility and authority.
- Close the deal: Once you have established rapport and trust with your SQLs, ask for the sale. Use urgency and scarcity tactics to create a sense of FOMO (fear of missing out). Offer discounts, bonuses, guarantees, or free trials to overcome any remaining hesitation. Make the buying process easy and convenient for them. Follow up with them until they sign the contract or make the payment.
TIP
- Use a lead magnet to attract and capture MQLs
- Use a lead qualification form to filter and qualify SQLs
- Use a lead nurturing campaign to educate and engage MQLs
- Use a sales pitch to persuade and convert SQLs
- Use a thank you page to delight and retain customers
Marketing Qualified Lead vs Sales Qualified Lead: A Statistical Report
In the B2B sales process, leads are often classified as marketing qualified leads (MQLs) or sales qualified leads (SQLs), depending on which department qualifies them and their readiness to buy. MQLs are prospects who have shown some interest in the company’s products or services but are not ready to talk to sales yet. SQLs are prospects who have expressed a clear intent to buy and are ready to move forward in the sales funnel. Understanding the difference between these two types of leads is crucial for optimizing the lead generation and nurturing strategies, as well as aligning the marketing and sales teams.
Global Demand Trends
According to a report by HubSpot, the global demand for MQLs and SQLs has increased significantly in the past year, as more B2B companies adopt inbound marketing and sales methodologies. The report shows that the average number of MQLs generated per month by B2B companies increased by 23% from 2022 to 2023, while the average number of SQLs generated per month increased by 18% in the same period. The report also reveals that the conversion rate from MQLs to SQLs improved by 12%, indicating a higher quality of leads and a better alignment between marketing and sales.
Industry Insights
The demand for MQLs and SQLs varies across different industries, depending on the nature of the products or services offered, the length of the sales cycle, and the buyer behavior. For instance, according to a study by SalesLeadsInc, the software industry has a higher ratio of MQLs to SQLs than the manufacturing industry, as software products tend to have shorter sales cycles and lower price points than manufacturing products. The study also shows that the healthcare industry has a higher conversion rate from MQLs to SQLs than the education industry, as healthcare buyers tend to have more urgent needs and higher budgets than education buyers.
MQLs and SQLs are two important categories of leads that reflect the different stages of the buyer’s journey and the readiness to buy. By analyzing the global demand trends and industry insights, B2B companies can optimize their lead generation and nurturing strategies, as well as align their marketing and sales teams. By doing so, they can increase their chances of converting more leads into customers and growing their revenue.
FREQUENTLY QUESTIONS
Q: What is the difference between MQL and SQL?
A: MQL is a marketing qualified lead who has shown interest in your product or service but is not ready to buy yet. SQL is a sales qualified lead who has expressed a clear intent to buy your product or service.
Q: How do I identify MQLs and SQLs?
A: You can use factors such as lead source, lead behavior, lead score, and lead stage to segment your leads based on their level of interest and readiness. You can also assign points to each lead based on their actions and set a threshold for each lead category.
Q: How do I convert MQLs into SQLs?
A: You need to align your marketing and sales teams, nurture your MQLs with relevant and valuable content, follow up with your SQLs with phone calls or emails, and close the deal with urgency and scarcity tactics.
Q: How do I measure the effectiveness of my lead generation and conversion process?
A: You can use metrics such as conversion rate, cost per lead, cost per acquisition, return on investment, customer lifetime value, and customer satisfaction to evaluate the performance of your lead generation and conversion process.
Q: How do I optimize my lead generation and conversion process?
A: You can use tools such as analytics, testing, feedback, and automation to optimize your lead generation and conversion process. You can also use best practices such as personalization, segmentation, targeting, and retargeting to improve your lead quality and quantity.
References:
https://www.chiefmarketer.com/wp-content/uploads/2017/02/CM-B2B-Lead-Gen-Survey-2-2017.pdf
https://blog.hubspot.com/sales/mql-vs-sql
https://www.marketo.com/lead-generation/
https://www.salesforce.com/blog/what-is-a-sales-qualified-lead/
https://www.wordstream.com/blog/ws/2019/01/30/mql-vs-sql
https://neilpatel.com/blog/marketing-and-sales-leads/
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