If you’re in sales or marketing, you’ve likely heard the term “sales funnel” before. But what is a sales funnel, and how does it work? In this blog post, we’ll walk you through the basics of the lead-to-SQL (sales qualified lead) process and explain the different stages of the sales funnel.
What is a Sales Funnel?
A sales funnel is a visual representation of the process that a prospect goes through to become a customer. At each stage of the funnel, prospects are filtered and sorted, with the end goal of identifying those who are most likely to become paying customers.
The sales funnel typically consists of several stages, including:
- Awareness: The prospect becomes aware of your product or service.
- Interest: The prospect shows interest in your product or service.
- Consideration: The prospect is considering making a purchase.
- Decision: The prospect decides to make a purchase.
- Loyalty: The customer becomes a repeat buyer and develops loyalty to your brand.
Understanding the different stages of the sales funnel is essential for developing an effective sales and marketing strategy.
What is a Lead?
A lead is a person or business that has shown interest in your product or service but has not yet made a purchase. A lead can be generated through a variety of methods, including social media, advertising, trade shows, referrals, outbound and inbound marketing.
Leads are typically collected through lead capture forms on websites, where prospects can provide their contact information in exchange for valuable content, such as a white paper or e-book.
What is an MQL?
An MQL (marketing qualified lead) is a lead who has demonstrated a higher level of interest in your product or service. MQLs have taken some action that indicates they are more likely to become a customer than other leads.
For example, an MQL might have downloaded a product demo or signed up for a free trial. MQLs have not yet been vetted by sales, but they are considered more promising leads than those who have only provided contact information.
How Does a Lead Become an MQL?
A lead becomes an MQL when they have taken a specific action that indicates they are more interested in your product or service than other leads. This could include:
- Downloading a product demo
- Signing up for a free trial
- Requesting a consultation or product demo
- Attending a webinar or event
- Filling out a detailed form with more information about their needs
When a lead takes one of these actions, they are indicating that they are further along in the buying process and may be ready for more targeted communication from your sales team.
What is an SQL?
An SQL (sales qualified lead) is a lead who has been vetted by sales and deemed ready for direct sales contact. SQLs have demonstrated a high level of interest in your product or service and are likely to become customers in the near future.
SQLs typically meet specific criteria, such as having a budget for your product or service, having decision-making authority, and having a timeline for making a purchase.
How Does an MQL Become an SQL?
An MQL becomes an SQL when they have been vetted by the sales team and deemed ready for direct sales contact. This typically involves a combination of lead scoring and lead nurturing.
Lead scoring is the process of assigning a score to a lead based on their actions and behavior. Leads who score high are more likely to become SQLs and receive direct sales contact.
Lead nurturing is the process of building a relationship with a lead over time, providing them with valuable content and information, and keeping them engaged until they are ready to make a purchase.
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