Glossary

Learn about analytics, product, and technical terms and get their definitions in our Glossary.

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                                                            Sales qualified lead (SQL)

                                                            Sales qualified leads (SQLs) have the highest potential of becoming a customer. They’re typically generated from marketing qualified leads (MQLs) that you’ve evaluated and determined to have the necessary characteristics of a viable customer.

                                                            You typically identify SQLs by evaluating the lead’s behavior, like their engagement with marketing content, level of interest in your product or service, and ability to purchase—just to name a few.

                                                            Let's dig into SQLs and how you can effectively measure them.

                                                            What is a sales qualified lead (SQL)?

                                                            A sales qualified lead (SQL) is a prospect that’s moved further down the sales funnel toward the purchasing stage. SQLs indicate concrete intent to buy. Prospects can demonstrate this intent via a direct interaction or conversation with the sales team or by being an engaged demo respondent.

                                                            SQLs' deeper level of engagement indicates they have an active need and recognize that your product or service could potentially solve it. It also shows they have the authority to make a purchase decision and that they’re evaluating your product as a viable solution. Measuring SQLs improves the effectiveness and efficiency of your sales processes, ensuring that your team focuses on high-potential leads with a greater chance of converting to a paying customer.

                                                            SQLs vs. MQLs and their role in the sales funnel

                                                            It’s crucial to understand the difference between an SQL and an MQL in the lead-generation process. Both types represent different stages in the sales funnel and reflect a lead's readiness to become a customer.

                                                            An MQL is usually an early lead generated through marketing effortslearn more about MQLs here. These prospects have shown interest in your product or service by interacting with your website, downloading a whitepaper, or registering for a webinar. They have the potential to become customers but often require further nurturing to move through the sales funnel.

                                                            In contrast, an SQL is farther along in the buying process. They’ve engaged with your marketing content and show a deeper interest in your product or service, perhaps by requesting a product demo or sales quote. This level of engagement, combined with their purchase intent and capacity to buy, qualifies them for direct sales attention.

                                                            The transition from an MQL to an SQL depends on your organization's specific lead scoring criteria. Typical scoring criteria include factors like the lead's website behavior, their interaction with your sales team, or how they respond to follow-up communications.

                                                            While MQLs are potential leads that require further engagement, SQLs are ready for the next step in the purchasing process and transition from marketing to the sales team.

                                                            5 strategies for measuring and qualifying SQLs

                                                            Lead qualification is essential to helping sales teams focus on the leads most likely to convert—instead of spinning their wheels with prospects who will never buy. Here are some best practices to effectively measure and qualify SQLs:

                                                            1. Implement lead scoring

                                                            Lead scoring is a technique used to rank prospects against a scale representing the perceived value of each lead. You base the score on the information shared by the lead and the behaviors they’ve exhibited. High-scoring leads are then considered as SQLs.

                                                            2. Clearly define SQL criteria

                                                            Establish a clear definition of what constitutes an SQL for your company. This definition might include specific actions you want the lead to take, like requesting a product demo or engaging in a pricing conversation. Clear criteria will ensure uniformity in the qualification process across teams.

                                                            3. Leverage predictive analytics

                                                            Predictive analytics can help you identify patterns and trends in your SQLs to predict future customer behaviors. These tools can provide insights into which leads are most likely to convert, enabling you to focus your efforts on the most promising prospects.

                                                            4. Train your team

                                                            Ensure your sales team is trained and well-versed in your lead qualification criteria and process. They should understand how to differentiate between an MQL and SQL and know the appropriate next steps to take with each.

                                                            5. Track and measure performance

                                                            Keep a close eye on your SQL conversion rates and key performance metrics. This data can provide valuable insights into the effectiveness of your lead qualification process and highlight improvement areas.


                                                            Remember, effectively identifying and nurturing SQLs can significantly enhance your sales process efficiency, leading to increased conversion rates and revenue.

                                                            In conclusion, sales qualified leads have a higher potential of becoming customers. Marketing and sales activities like lead scoring, lead nurturing, and sales outreach can help you identify SQLs. Understanding MQLs and SQLs and implementing best practices for measuring and qualifying leads enables you to better target your marketing and sales teams’ efforts—maximizing your return on investment and acquiring more customers.