How to qualify leads | Ask a Sales VP

Summary

Jordan Smith explains the importance of qualifying sales leads effectively, emphasizing that not all leads are equal. He introduces the concept of Marketing Qualified Leads (MQLs) and Sales Qualified Leads (SQLs), stressing the need to develop a clear criteria for what makes a good lead. Smith advises businesses to identify ideal clients, whether by assessing current customers or creating a wish list of targets. He also recommends prioritizing leads that come from referrals or marketing outreach, and actively reaching out to potential clients based on the established criteria. His main takeaway: be deliberate about who you engage with to optimize your sales efforts.

Takeaways

• 😀 Not all leads are created equal. It's important to differentiate between marketing-qualified leads (MQLs) and sales-qualified leads (SQLs).
• 😀 A marketing-qualified lead (MQL) is someone who expresses interest in speaking with you, while a sales-qualified lead (SQL) fits specific criteria you define for a good prospect.
• 😀 Build a clear criteria for what makes a good sales lead for your business. This can include factors such as business size, industry, and key decision-makers.
• 😀 Define the profile of your ideal customer by looking at current clients that are profitable and enjoyable to work with.
• 😀 If you don't have a lot of ideal customers yet, create a 'wish list' of the types of clients you'd love to work with based on company size, industry, and more.
• 😀 Be specific and deliberate in who you choose to engage with. Don't waste time on every lead that comes your way.
• 😀 Marketing leads that find you or are referred by someone should be prioritized. Respond quickly to referrals, even if they don't meet all of your ideal criteria.
• 😀 Responding to marketing leads quickly shows you're engaged and committed to helping potential customers, even if they're not an immediate fit.
• 😀 Don’t wait for qualified leads to come to you. Build a proactive list of potential clients that fit your criteria and reach out to them.
• 😀 Sales success involves identifying and working with people who meet your criteria. This helps streamline your efforts and focus on leads with higher potential for success.

Q & A

What is the key concept that Jordan Smith emphasizes about sales leads?

Jordan Smith stresses that not all leads are created equal. It's important to develop a specific criterion for qualifying leads and identifying which ones are worth pursuing.

What is the difference between a marketing qualified lead (MQL) and a sales qualified lead (SQL)?

A marketing qualified lead (MQL) is someone who has shown interest in your product or service, while a sales qualified lead (SQL) is a lead that meets specific criteria that your organization has set for a good prospect.

Why is it important to have a set criteria for qualifying sales leads?

Having a set criterion ensures that you are not wasting time on leads that may not fit your ideal customer profile. It helps streamline the sales process and improves conversion rates by targeting the right prospects.

What steps should you take to further qualify a sales lead once they meet the basic criteria?

Once a lead meets your basic sales qualification criteria, further qualification can be done by analyzing their specific attributes, such as the industry they belong to, company size, the role of the person you're communicating with, and other factors relevant to your organization.

How can you build a list of sales qualified leads if you don’t have many existing customers?

If you don't have many existing customers to model, you can conduct research to create a list of organizations that fit the ideal customer profile. You can also experiment by talking to different people and evaluating who is most likely to become a good lead.

What is the importance of referrals and marketing leads in the qualification process?

Referrals and marketing leads are important because they typically come with a higher level of trust and urgency. It's recommended to act quickly on these leads, even if they don't perfectly meet your qualification criteria, because they may already have a strong connection or need for your service.

How should you respond to a lead who comes through a referral?

You should respond to a referral lead quickly, regardless of their fit with your qualification criteria. This shows that you value the referral and want to help the person who was recommended, even if it means referring them elsewhere if you’re not the right fit.

What does Jordan Smith recommend doing with leads that are not immediately qualified?

Jordan recommends building a 'top 25' or similar list of prospects who may be a little colder but still fit your criteria. These leads can be approached gradually and are useful for building a strong sales pipeline.

Why should salespeople be specific about the leads they pursue?

Salespeople should be specific about the leads they pursue because spending time on leads that aren’t a good fit wastes resources and leads to frustration. A focused approach ensures that energy is directed at the most promising prospects.

What are some criteria that can help identify a good sales lead?

Criteria for identifying a good sales lead can include factors like company size, revenue, industry, and job title. Understanding these characteristics helps tailor your efforts toward leads who are more likely to convert into customers.