Marketing and sales can be compared to chess, it is a strategic move, involving some specifics and complexities but if managed properly the result is always worth it. Lead generation is no longer simply getting people to respond, but for them to respond positively towards the product, and steer them towards the funnel. Leads can be viewed as pre-qualified potential prospects and the key here is to invest enough time and effort into their growth to turn them into ‘queens’. But how do you differentiate the qualified leads from the scammers and only give your time and attention to the ideal ones? What concerns the initial identification of the channels, how do you winnow the endless stream of potential sources to select only the best that would benefit your business?
In 2024, people should know what exactly is the quality lead, and how it could be measured. As data marketing, data analytics and artificial intelligence becomes more prevalent in the business world, companies have many more resources available to them in order to qualify leads effectively. However, with such a broad array of tools at your disposal, the problem arises in were applying these tools to make sure that you are not only converting the leads appropriately but also converting them into customers.
What is a Quality Lead?
A good lead is not just any person who feels that he or she might need your product in the future. A good lead is one who is not only interested but also likely to buy and for this reason is also referred to as a qualified lead. They have the right amount of money, the right to choose, if the product or service you are marketing is indeed necessary to them.
In other words, they are the kind of lead you want to pursue. Without these factors, even a high volume of leads won’t make much of a difference to your bottom line.
Company X vs. Company Y
For example, imagine that you are a manager of the B2B software company which specializes on the CRM software for mid-sized tech company.
You’ve generated two leads: Company X and Company Y.
- Company X is a small startup with only five employees. They’re interested in learning more about your software but don’t have a dedicated budget for a CRM platform.
- Company Y, on the other hand, is a growing mid-sized tech company with a staff of 150 employees. They have a dedicated budget for CRM software and are actively searching for a solution that fits their needs.
In this scenario, Company Y is clearly a better lead. They have the budget, the need, and the authority to make a purchasing decision. Meanwhile, Company X might be interested in your product, but they don’t currently have the resources to purchase it, making them a lower-quality lead for now.
The Importance of Lead Qualification
ust like the ‘sorting hat’ in Harry Potter that mapped every student in Hogwarts to the right house, lead qualification goes a long way in mapping every lead to an appropriate bucket depending on its probability. Lead qualification is important as ensures no time and effort is spent on leads that will not change, thus saving much time and money.
The Lead Qualification Process
Lead qualification is not a one-time thing because not all the leads that you come across are worthy to be taken through the entire sales process. It is a continuous process and this takes place for the whole cycle of sales process. It is started from the minute a lead engages with your marketing content and extends up to the time he or she decides to buy a product (or drops out of the funnel).
Here's a detailed look at how the process works:
- Marketing Stage: Leads are collected by the marketing team through various means such as through their social media profiles, email subscriptions or website. They ensure that the lead is from your target demographic of customer.
- B2B Example: Your marketing team captures Company Z, a financial consulting firm. They signed up for your newsletter and downloaded a whitepaper on how CRM software can improve client management. Company Z fits your target profile, making them a good lead to pass on to the sales team.
- Discovery Call: A sales rep initiates a call to the lead in a bid to access his or her needs, budget, and buying power. The rep gets some important data such as timeframes of the project, problem areas, and decision making.
- B2B Example: During the call with Company Z, the sales rep learns that they need a CRM solution within the next three months and have a budget that matches your pricing model. They also confirm that the head of operations is the decision-maker.
- Proposal or Disqualification: From the discovery call, the sales team will determine whether or not to deal further with the lead. If they find that a particular lead fits the bill, they go on with the further marketing proposal. If they do not, the sales team either says that the prospect is out of the organization’s scope or provides the prospect with suggestions on which products and/orservices would be more suitable to their needs.
- B2B Example: Your sales rep disqualifies Company X because they don’t have the budget right now. However, they recommend a free CRM solution that can meet their needs until they’re ready to scale up.
Popular Lead Qualification Frameworks
There are several frameworks that businesses use to qualify leads. Each offers a different way to assess potential clients based on specific criteria. Let’s explore some of the most popular ones:
1. BANT: Budget, Authority, Need, Timeline
The BANT framework is one of the most widely used methods for qualifying leads, focusing on four key areas:
| Factor | Description | Example |
| Budget | Does the lead have the budget to buy your product? | Company A has a budget of $50,000 for new software – a match for your pricing. |
| Authority | Can the lead make purchasing decisions? | The CEO of Company B is directly involved in the purchasing decision. |
| Need | Does the lead have a problem that your product solves? | Company C needs a solution to improve internal collaboration, which your software offers. |
| Timeline | How soon is the lead ready to make a purchase? | Company D needs to implement the software within 90 days. |
BANT is ideal for high-ticket items or B2B sales where decision-makers play a crucial role in the buying process.
- Fictional B2B Example: TechCo, a growing software company, has been struggling with project management. They contact your company, and after a BANT evaluation, you find that they have the budget ($20,000), the CEO is involved in the decision-making process, and they need a solution within 6 months. However, they are still exploring other options, which puts them in the “medium-quality lead” category for now.
2. CHAMP: Challenges, Authority, Money, Prioritization
The CHAMP method flips the script, prioritizing challenges over budget. In this framework, solving the lead’s pain points is key to conversion.
| Factor | Description | Example |
| Challenges | What problem is the lead trying to solve? | FinCorp needs a solution to streamline client reporting. |
| Authority | Who is the decision-maker? | The Head of Finance at FinCorp is leading the project. |
| Money | Does the lead have the necessary budget? | FinCorp has allocated $30,000 for the new tool. |
| Prioritization | How urgent is the lead’s need for a solution? | FinCorp needs the solution within 30 days to meet deadlines. |
- Fictional B2B Example: RetailCo, a large retail company, is struggling with tracking inventory across its stores. Using the CHAMP framework, you discover that their main challenge is operational efficiency, and while they haven’t fully set a budget, they see this problem as a top priority. They’re not the highest-quality lead yet, but by addressing their pain points, you move them further down the funnel.
3. MEDDIC: Metrics, Economic Buyer, Decision Criteria, Decision Process, Pain Point Identification, Champion
MEDDIC is a more complex framework and is typically used in industries with high-ticket sales, like software or enterprise solutions.
| Factor | Description | Example |
| Metrics | What quantifiable results does the lead expect? | EduTech wants to reduce their customer churn by 10%. |
| Economic Buyer | Who has the final purchasing power? | The VP of Operations at EduTech is the economic buyer. |
| Decision Criteria | What criteria will influence the purchasing decision? | EduTech needs seamless integration with their existing tools. |
| Decision Process | How does the lead make purchasing decisions? | The lead must get approval from the board before moving forward. |
| Pain Points | What problem is the lead trying to solve? | EduTech is losing customers due to poor user experience. |
| Champion | Is there someone in the company advocating for your product? | The CTO at EduTech is a strong advocate for your product. |
- Fictional B2B Example: HealthCorp needs a new software solution to streamline their patient management process. Through the MEDDIC framework, you find that they expect the new system to reduce operational costs by 15% (Metrics). The CFO is the economic buyer, and they need a solution that integrates with their existing electronic health records (EHR) system (Decision Criteria). Their pain point is the inefficiency of their current system, and the Head of IT is championing your software internally. This is a high-quality lead.
How to Measure Lead Quality in 2024
Lead quality measurement has evolved significantly in recent years, thanks to advancements in data analytics, AI, and CRM systems. Here are the most effective ways to measure lead quality in 2024:
1. Lead Scoring
Lead scoring is a numerical system that ranks leads based on their likelihood to convert. Different actions or characteristics, such as job title, company size, or engagement with marketing material, are assigned point values. When a lead reaches a certain score, they are deemed ready for a sales follow-up.
- Fictional B2B Example: Your CRM software assigns points to Company Q based on their interactions with your content (e.g., email opens, webinar attendance). After reaching a score of 75, they’re flagged as a high-quality lead for immediate follow-up.
2. Behavioral Analytics
In 2024, advanced behavioral analytics allow businesses to track and measure how leads engage with their marketing material. This includes tracking website visits, clicks, time spent on certain pages, and social media interactions.
- Fictional B2B Example: EduCorp visits your pricing page five times and downloads three whitepapers on your software’s features. Their high level of engagement suggests strong intent, making them a high-quality lead.
3. AI and Predictive Analytics
AI and machine learning tools can now predict the likelihood of conversion based on historical data. These tools analyze patterns in customer behavior to identify leads that closely match past conversions.
- Fictional B2B Example: AI tools analyze RetailCo's interactions and compare them to previous leads that converted into paying customers. Based on these patterns, AI predicts a 70% likelihood that RetailCo will convert.
Conclusion
Thus, quality leads are those, who meet your customer target, have a certain issue, which can be solved by your offering, have a financial means, experience and willingness to purchase. But bear this in mind – lead qualification is not an effective strategy that is practiced in the same way across companies. Stepping through leads, scoring, and constant monitoring help in ridding your sales team from vanity leads that do not contribute to business growth.
Therefore, the next time you are sorting through heaps and heaps of leads, do not be deceived by the huge pile, it is all about quality. It’s about the quality.
