What is an SQL – Sales Qualified Lead

SQL sales qualified lead

What is an SQL – Sales Qualified Lead

In the SaaS world, a lot of focus is often directed toward attracting new customers. Creating a wave of interest in your startup is imperative. However, the real challenge lies in figuring out which customers are willing to pull out their credit cards and pay for your services. This is where analytical tools like SQL come in to help you in the evaluation of your customers and determining which ones are most likely to buy your services.

Definition of Sales Qualified Lead (SQL)

A sales qualified lead (SQL) is a term used to refer to a potential customer who has been researched and validated – first by the marketing department, then by the sales team – and is ready to move forward in the sales process. An SQL has expressed interest in purchasing the products of a company and has met the lead qualification standards used by the company to determine if a buyer is a good fit. A prospect that has progressed through the engagement phase and is ready to be converted into a full-time customer is given this title.

What qualifies as an SQL differs from company to company, and marketing and sales departments frequently disagree on how to classify leads. When a company wants to encourage interest in its products, marketing-qualified leads (MQLs) are frequently discovered by the marketing department at the start of the process. MQLs are often sent on to sales teams once they have demonstrated a desire to purchase, converting them to SQLs.

The lead management process of the company determines an SQL, which is generally demonstrated by the actions a potential customer performs that indicate intent to buy. To identify serious customers, companies use a lead scoring system. This system is designed to assist salespeople to save time and help them meet their quotas faster. Sales and marketing teams should typically work together to define the attributes and activities a prospect must possess to progress to the next level of the process. Many lead quality concerns arise when marketing sends sales leads who have no intention of purchasing, slowing down the sales process.

Companies want to employ tactics like customer profiling to assess whether it is time to hand over a lead to the sales department. Therefore, demographics are a big component of an SQL’s makeup. Industry, firm size, and job function are all important factors in assessing how interested and serious a lead is in purchasing the services of a SaaS. Before contacting the prospect, facts such as pain points and budget become relevant to the sales representative as the prospect gets closer to being designated an SQL.

Integrating SQL Into Your SaaS Business

By now, you should have a good idea about how SQL works and the perks your company stands to enjoy if well implemented. It is therefore important to monitor the traffic your SaaS gets and evaluate the likelihood of each visitor subscribing, based on the parameters mentioned above, such as the number of visits.


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