If there is one thing we hear a lot of, it’s that leads are bountiful and easy to come by! That is true and false, depending on what type of lead you are talking about. There are different types of leads, and in this article, I’ll break down the different types of leads. The life cycle of a B2B sale can be a complex journey. It all starts with a prospect, a potential customer with a need, but the path to closing the deal involves several key stages, each defined by the type of lead you’re nurturing. Here’s a breakdown of the B2B sales funnel, exploring the different types of leads you’ll encounter along the way, and the key point: the easier it is to acquire a lead, the less qualified they are likely to be.

1. Prospect: The Starting Point (Abundant)

Every successful sales story begins with a prospect. This is a potential customer who might have a problem your company’s product or service can solve, but they haven’t necessarily shown any active interest yet. Prospects are plentiful and can be identified through various lead-generation activities or found within your target market. However, quantity doesn’t equal quality. Converting a prospect into a qualified lead requires nurturing and engagement.

2. Lead: Initial Contact and Information Gathering (Relatively Easy to Find)

Once a prospect expresses a modicum of interest, they become a lead. This initial engagement might occur through various channels – downloading a white paper, attending a webinar, or responding to a social media ad. At this stage, the lead has provided some basic contact information, but their qualification for your offering remains unknown. Leads are still relatively easy to come by at this stage, but the qualification process starts to whittle down the numbers.

3. Marketing Qualified Lead (MQL): Warming Up the Lead (Requires Nurturing)

The marketing team plays a crucial role in nurturing leads. By providing valuable content, engaging in email marketing campaigns, or offering free trials, they assess a lead’s interest and fit. Leads who demonstrate further engagement by downloading gated content, attending industry events, or clicking through marketing emails become Marketing Qualified Leads (MQLs). MQLs are promising, but their buying intent and budget need further exploration. Acquiring MQLs requires more effort than attracting prospects, as they’ve shown some level of interest.

4. Sales Qualified Lead (SQL): Time for Sales to Step In (Considerably More Difficult to Find)

MQLs are then passed on to the sales team for further qualification. The sales team delves deeper, typically through phone calls or meetings, to understand the lead’s specific needs, budget, and decision-making authority. If the lead meets the pre-defined criteria established by your sales team, they become a Sales Qualified Lead (SQL). SQLs are high-potential leads with a demonstrated need, budget, and decision-making power. Finding qualified SQLs becomes noticeably more difficult at this point in the funnel. They represent a smaller pool of leads but a much higher chance of conversion.

5. Sales Accepted Lead (SAL): Passing the Baton to Sales Leadership (The Toughest Nut to Crack)

In some organizations, an additional layer of qualification might exist. The sales team might present SQLs to sales leadership for final approval. If leadership agrees that the SQL aligns perfectly with the company’s target market and has a high chance of closing, they become Sales Accepted Leads (SALs). SALs represent the most qualified leads, ready for the sales team to close the deal. Finding and qualifying SALs is the most challenging aspect of the lead generation process. They are the rarest type of lead but also the most likely to convert into a paying customer.

6. Won Deal: Sealing the Agreement (The Ultimate Goal)

The ultimate goal of the B2B sales funnel is to convert leads into paying customers. Through effective salesmanship, presentations, and negotiation, the sales team transforms an SAL into a Won Deal. This signifies a successful sales cycle, where the prospect’s need is addressed, and your company acquires a new customer.

Understanding Lead Types: A Key to Success

Distinguishing between different lead types is crucial for effective B2B sales. By nurturing leads through the funnel, qualifying them at each stage, and focusing resources on the most promising opportunities (MQLs, SQLs, and SALs), your sales team can optimize their efforts and maximize their chances of closing deals. Remember, not every prospect will convert into a customer, but by effectively managing your sales funnel and understanding lead types, you can significantly increase your win rate.