45% of marketers say that attracting quality leads with content remains their top challenge, with 38% of businesses struggling to find the resources to produce more. (Semrush, 2023).

If you don’t want to fall into this bracket, you need more sales-qualified leads. That’s why we have set the lead qualification criteria for you.

Before diving into the lead qualification criteria, let’s explore what it is and why it is important.

What is Sales Qualified Lead and Why is it important?

A Sales Qualified Lead (SQL) is a critical point in the sales process where the lead is deemed ready for direct sales efforts. Once a prospect has been vetted and deemed ready, they are targeted by the sales team.

Unlike Marketing Qualified Leads (MQLs), which show interest in your product or service, SQLs have been identified as having a higher likelihood of converting into paying customers.

In other words, MQLs are nurtured by marketing strategies until they are ready to be handed over to sales as SQLs.

To qualify a Marketing Qualified Lead (MQL) as a Sales Qualified Lead (SQL), it must undergo thorough lead qualification.

This process involves evaluating factors such as the lead’s need for your product or service, their decision-making authority, and their likelihood of making a purchase.

It’s no secret that high-quality sales leads mean more efficient sales processes. By identifying SQLs that are a better fit for your product or service, you can allocate resources more effectively.

Must Read: How to Generate Leads for B2B Sales

What’s the Core Criteria of an SQL

Before selling to SQL, you need to qualify them. So, what’s the best way to qualify them? The truth is, there is no single right answer. Here are some common criteria for qualifying an SQL.

a. Budget

What’s the end goal of your sales process? It’s revenue, right? Your SQL must have the budget to purchase your product or service. No matter how interested your buyer may be, if they don’t have the budget, they won’t move forward with the purchase.

Understanding a prospect’s budget allows sales teams to tailor their pitches accordingly and ensure that your pricing model is in line with prospect’s financial constraints.

According to Forrester, companies that effectively assess budget as part of their SQL criteria see a significant increase in conversion rates.

b. Authority

It is important to know whether your lead has the authority to buy what you are selling. They might like your product or service, but if they don’t have decision-making power, it could lengthen the process.

Sometimes, even if you speak with the decision-makers, they may require a buy-in from their team to make a final decision.

So, it’s important to clearly understand where the lead falls in the decision-making process to streamline the sales process and reduce the time to close deals.

c. Need

To be a good fit for selling, you need to know if your solution solves your buyer’s problem. Demonstrating how your offering meets this need is essential for moving the lead further down the sales pipeline.

Accenture’s research shows that aligning your solution with the prospect’s needs enhances the likelihood of conversion.

d. Timeline

The fourth criterion you’ll want to consider is the timeline. To deem a lead qualified, you need to evaluate the urgency with which a prospect needs a solution.

And SQL should have a defined timeline for making a purchasing decision. Understanding the prospect’s timeline allows you to set clear metrics for when the timeline is too far out or if the lead should be disqualified from moving forward.

e. Company Size

Company size can be a determining factor in lead qualification. Different products or services may be better suited for businesses of specific sizes.

Understanding the company size helps tailor the sales approach and ensures that the offering aligns with the prospect’s scale and capabilities.

f. Industry

Industry alignment is another crucial criterion for qualifying SQLs because certain industries may have specific requirements or regulatory considerations. By identifying the prospect’s industry, sales teams can customize their pitch to address industry-specific challenges and opportunities.

g. Geographic Location

Geographic location plays a role in lead qualification, especially for businesses with regional sales strategies or restrictions. Understanding where a prospect is located can help determine logistical considerations and tailor marketing messages to align with local market trends and cultural nuances.

h. Lead Score

The process of moving an MQL to an SQL is based on multiple parameters. It includes various criteria, such as the information submitted and how they are engaged with the brand across the internet.

By assigning numerical values to various behaviors and characteristics, sales teams can prioritize leads and focus on those with the highest scores.

Lead scoring saves time and improves efficiency, allowing you to spend more time talking with leads who are more interested in your product or service.

According to Statista, companies using automated lead scoring see a 28% increase in the efficiency of their lead qualification process.

Must Read: How to Generate Sales Leads without Cold Calling

Tools and Technologies for SQL Qualification

In the modern sales landscape, tools and technologies play a vital role in identifying and managing Sales Qualified Leads.

Here are some key tools that can enhance the SQL qualification process:

CRM Systems:

Customer Relationship Management (CRM) systems like Salesforce, HubSpot, and Zoho CRM help track interactions and manage leads.

They provide valuable insights into a lead’s behavior and engagement history, aiding in the qualification process.

Marketing Automation Platforms:

Tools like Marketo, Pardot, and Eloqua automate marketing tasks, track lead interactions, and score leads based on predefined criteria. These platforms help ensure that only the most promising leads are passed to sales teams.

AI and Machine Learning:

AI-powered tools can analyze vast amounts of data to predict lead behavior and identify SQLs with higher accuracy. Machine learning algorithms continuously improve lead scoring models by learning from past sales data.

Lead Scoring Software:

Dedicated lead scoring software assigns scores to leads based on various attributes and actions, allowing sales teams to focus on high-potential SQLs.

Must Read: Sales Qualified Lead vs Sales Accepted Lead: Distinguishing Sales-Ready Leads from Potential Sales Leads

What are the Best Practices for SQL Management

Effective management of Sales Qualified Leads requires strategic alignment between sales and marketing teams and the use of best practices. Here are some key strategies to consider:

Alignment Between Sales and Marketing:

According to Forrester reports, organizations aligning their sales and marketing efforts to define SQL criteria can see up to a 36% improvement in lead conversion rates.

Alignment between sales and marketing teams is vital for defining SQL criteria and ensuring a smooth lead handoff. Collaborative efforts between sales and marketing teams play a critical role in shaping the message that aligns with your brand.

Regular communication and shared goals help both teams work together to achieve conversion targets.

And when both teams collaborate, they can leverage unique insights to better address audience needs and pain points. It not only helps in nurturing leads but also in closing sales and building long-lasting relationships.

Continuous Monitoring and Feedback:

Regularly review and refine SQL criteria based on feedback from sales teams and changes in market dynamics. This iterative process ensures that SQL criteria remain relevant and effective.

Personalized Engagement:

Tailor your sales approach to each SQL’s specific needs and preferences. Personalized communication and targeted content enhance engagement and build trust with prospects.

Nurturing and Follow-Up:

Even after a lead is qualified as an SQL, continuous nurturing and follow-up are essential. Maintaining engagement through personalized content and timely follow-up increases the chances of conversion.

Data-Driven Decision Making:

Leverage data and analytics to make informed decisions about lead qualification and sales strategies. Data-driven insights help optimize lead management and improve conversion rates.

Must Read: MQL Criteria: Identifying Potential Customers Effectively

To Wrap up

If your sales funnel has lots of leads but not enough sales, it indicates a problem with lead quality. But, by empowering your sales strategy with the right lead qualifying criteria you can optimize your approach- start identifying leads that are likely to convert, thereby bringing revenue to your business.

Vikas Bhatt

Vikas Bhatt is the Co-Founder of ONLY B2B, a premium B2B lead generation company that specializes in helping businesses achieve their growth objectives through targeted marketing & sales campaigns. With 10+ years of experience in the industry, Vikas has a deep understanding of the challenges faced by businesses today and has developed a unique approach to lead generation that has helped clients across a range of industries around the globe. As a thought leader in the B2B marketing community, ONLY B2B specializes in demand generation, content syndication, database services and more.