Definition
An SQL (Sales Qualified Lead) is a prospective customer that a salesperson (typically an SDR or BDR) has researched and vetted and is now deemed ready for a direct sales conversation. An SQL has moved beyond the initial interest stage of an MQL (Marketing Qualified Lead) and has been qualified by the sales team as having a genuine potential to buy. This qualification usually involves a discovery call to confirm factors like budget, authority, need, and timeline (BANT).
Examples
- MQL to SQL Conversion: An SDR follows up with an MQL who attended a webinar. During the conversation, the SDR confirms the prospect has a specific business need, an allocated budget, and the authority to purchase. The lead is then marked as an SQL and a demo is booked with an Account Executive.
- High-Intent Inbound: A visitor from a target company fills out a « contact sales » or « get a quote » form. The sales development representative calls them immediately, confirms their project details, and qualifies them as an SQL.
- Trade Show Interaction: After a positive conversation at a trade show booth, a BDR calls the contact the following week. They verify the prospect’s interest and purchasing intent, converting them into an SQL for the sales pipeline.
Advantages/Benefits
- Optimized Sales Resources: Ensures that Account Executives, the « closers, » spend their valuable time only on prospects who are genuinely ready to engage in a sales cycle.
- Higher Conversion Rates: Because SQLs are thoroughly vetted, they are significantly more likely to become paying customers, increasing the overall win rate.
- Accurate Sales Forecasting: The number of SQLs is a strong, reliable indicator of the health of the sales pipeline, leading to more predictable revenue forecasts.
- Improved Marketing Feedback: The process of qualifying MQLs into SQLs provides a direct feedback loop to the marketing team on the quality of leads they are generating.
Related terms
- MQL (Marketing Qualified Lead)
- SDR (Sales Development Representative)
- Discovery Call
- BANT (Budget, Authority, Need, Timeline)
- Sales Pipeline
- Opportunity
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