What Is Lead Qualification, and How Do You Do It?
Lead qualification plays an essential role in the sales process. By qualifying leads, you can filter potential customers and focus on the ones most likely to turn into a sale for your company.
In this article, we look at the following:
- What is lead qualification?
- Why should you qualify leads?
- 6 tips: How to qualify leads
- Who should qualify leads?
- Get help with lead qualification from Radiant
What is lead qualification?
Lead qualification is the process in which a company assesses how much potential a lead has to become a paying customer. It is a decisive step in the sales process, because it helps identify which leads are most likely to convert. In other words, it shows where you should invest your resources. If you lack the time to qualify leads yourselves, Sales as a Service can take over prospecting, qualification and meeting booking, so your salespeople only spend time on the right conversations.
Qualifying leads means assessing them against specific criteria such as their need, budget, authority and timeframe for buying.
A good lead should fall within your Ideal Customer Profile (ICP). As groundwork for lead qualification, it is therefore important to define your ICP.
Why should you qualify leads?
There are several reasons to qualify leads. They all rest on the same foundation: you should spend your time on leads that have the potential to become customers.
Here are three of the most essential reasons to qualify leads:
- Greater efficiency: By focusing only on the leads most likely to convert, sales teams save time and resources that would otherwise be spent on less promising opportunities.
- Higher conversion rates: When you focus your effort on leads that have already shown interest and the capacity to buy, the chances of converting them increase significantly.
- Better resource allocation: Lead qualification helps you prioritise leads, so you can allocate your sales budget and your people more effectively.
By qualifying leads continuously, you get a clearer picture of which customers are your ideal customers, and you can adjust your overall strategy accordingly.
6 tips: How to qualify leads
There are several ways to qualify leads. Below are six tips on the easiest way to approach it:
1. Set your criteria
Start by defining the criteria that identify an ideal lead. These can include job title, budget, need and interest in specific products or services.
2. Use lead scoring models
Lead scoring is a technique in which points are assigned based on how well a lead matches the qualification criteria you have set. This helps you rank leads by their likelihood of converting.
With lead scoring, you can systematically work out which information leads need and when they need it, so your company is top of mind when the customer makes a decision.
This makes it easier for sales and marketing to target their efforts and increase the number of leads that end up converting.
3. Interaction and evaluation
Interact with leads through calls, emails or meetings to gather further information that can help you assess their qualification and buying intent.
Also evaluate your interactions with potential customers to gain insight into their level of interest and engagement. Does the customer take an active part in discussions? Do they answer surveys or attend webinars? All of these activities are signs that the customer is interested and engaged, and that is a strong foundation for winning a loyal customer.
4. Segment your target audience
Divide your potential customers into different segments based on needs and preferences, as well as certain types of data depending on whether it is B2C or B2B segmentation:
- B2C segmentation can be based on demographics (age, gender, income), geography, lifestyle, purchase history and online activity, among other things.
- B2B segmentation can be based on data such as firmographics (industry, size, location), company culture, buying behaviour and needs.
Once you have segmented your target audience, you should also analyse their purchase history. Review customers' previous purchases and behaviour patterns for signs of loyalty and engagement. If a customer's purchase history aligns with your products and/or services, that can be a positive sign.
5. Use automation
Lead qualification takes time, and you can make it easier for yourself with automation. Use your CRM system and other automation software to track and analyse lead behaviour and engagement. This gives you deeper insight into each lead's potential while saving time and resources in the process.
6. Use the BANT method
The BANT method is a lead qualification method that structures the process and the questions that go with it. BANT stands for budget, authority, need and timeline. By asking questions related to these four topics, for example under Budget "What is your budget for achieving X?", you make sure the company or person has a budget for your product or service.
Read more about the BANT method.
Who should qualify leads?
In many companies, qualifying leads is the responsibility of the sales team. That is because salespeople have direct contact with potential customers and a deep understanding of the sales process and the criteria for a qualified lead.
In some cases, the marketing department can also play a role in the early phase of lead qualification. This applies in particular when it comes to assessing leads generated through inbound marketing activities.
Read more about how lead qualification becomes part of your sales strategy.
Get help with lead qualification from Radiant
At Radiant, we help companies with B2B sales and the processes around it every day, including lead qualification.
Specifically, we offer:
- Sales Infrastructure & HubSpot: We can optimise your HubSpot on an ongoing basis and act as your technical support, so your platform supports your opportunities.
- Sales Performance & Market Focus: Focus your sales effort and improve your sales performance based on real experience and data.
- Sales Go-To-Market: We test and validate sales in new markets and build the foundation for effective growth.
Lead qualification plays an important role in all three services. With HubSpot implementation and Sales Infrastructure & HubSpot, we focus among other things on how processes can qualify leads. With Sales Performance & Market Focus, we focus on how your sales team qualifies leads when they are in dialogue with a potential customer.
Want to discuss how to qualify your leads better? Talk with a Partner.
