Understanding Lead Categories

It is important from the Sales perspective to understand the Category or Type of the Leads that you are tracking. Three main types are recognized as relevant, regardless the industry type.

1. Information Qualified Lead (IQL)
2. Marketing Qualified Lead (MQL)
3. Sales Qualified Lead (SQL)

Information Qualified Lead (IQL)

An Information Qualified Lead does not have much information about your business or your intentions. It is essentially a ‘Cold’ Lead. The best you can do is to give them access to free samples, catalogs,free webinars etc. and gently convert them to Marketing Qualified Lead.

Marketing Qualified Lead (MQL)

A Marketing Qualified Lead has shown some interest in buying your product or service. They’re open to the idea of a sale and have taken an initial step to engage with your business, without actually making a purchase yet. While marketing efforts can bring leads in, the lead’s behavior is what prompts marketers to consider them an MQL. They make some sort of active contact action to peruse what you have to offer. We can consider a MQL as a ‘Warm Lead’.

Examples of Marketing Qualified Lead actions:

• Downloading trial software or free ebook
• Using software demos
• Filling out online forms
• Submitting an email address for a newsletter or mailing list
• Favoriting items or adding items to a wishlist
• Adding items to the shopping cart
• Repeating site visits or spending a lot of time on your site
• Clicking on an ad to find your site
• Contacting you to request more information

Sales Qualified Lead (SQL)

An MQL becomes a Sales Qualified Lead (SQL)

In very simple language, a Marketing Qualified Lead turns into a Sales Qualified Lead (SQL), which then turn into a Customer. Don’t assume that every Marketing Qualified Lead will turn into a Sales Qualified Lead. Even if they are indicating interest, you can’t assume a lead will always proceed down the sales funnel to Customer status. If a lead is clearly not ready to make a purchase and you approach them as if they are, you will likely scare the lead away entirely. A SQL is a ‘Hot’ lead

The main difference between a Marketing Qualified Lead and Sales Qualified Lead is the lead’s perceived willingness to make a purchase. Marketing Qualified Leads are very curious, while Sales Qualified Leads are leads handed off to Sales because they are considering a purchase.

Here’s a quick example to demonstrate the difference: Imagine you are shopping in a retail store at your local mall. If you’re a Marketing Qualified Lead, you’re probably browsing or window-shopping. By going into the store you indicate that the interest is there, but there’s only a chance that you buy something. Meanwhile, if you’re a Sales Qualified Lead, you’re probably walking straight to the aisle you need or are hunting down a floor associate for help.

SQLs would have been vetted for intent and are highly interested in making a purchase. These are usually those leads who are requesting quotes, requesting purchase information, or requesting a live demo session.