If you’re new to the industry, you might not know what people mean when they say something about “sales leads.” You probably don’t want to go up to your boss and say, “Hey, boss… what’s a sales lead?” That’s probably why you just googled it instead.
We’re here for you. We’ll explain what leads are in sales and why they’re important.
Sales Leads: A Basic Understanding
In simple terms, a lead is a potential customer. It’s an individual or an organization that sales will target to convert into a client or customer.
There are different types of leads (e.g., MQLs and SQLs – more on that in a minute). Your company probably has specific definitions for each. These definitions may differ from those used at other companies.
But, generally, a lead is someone who might be a good fit for your product or service. They may have expressed interest in your and shared their contact details with your business. This could occur through filling out a form on your site, subscribing to a newsletter, or responding to a survey.
What Are Qualified Leads?
Not all leads are created equal. The quality of a sales lead depends on many factors. Primarily:
- Do they fit your target audience’s profile?
- Are they likely to make a purchase?
This is where lead qualification and lead scoring come into play. These tactics enable sales teams to focus their efforts on the most promising leads.
Qualifying Leads
Leads can be broadly categorized into two types:
- Marketing Qualified Leads (MQLs). MQLs have engaged with your marketing efforts. But they haven’t indicated that they’re ready to purchase. They might have downloaded a content offer, subscribed to your blog, or engaged with your social media content.
- Sales Qualified Leads (SQLs). SQLs are more valuable because they have shown an intent to buy. For instance, they might have requested a demo, asked for a quote, or contacted your sales team.
The distinction between MQLs and SQLs is vital. It helps your sales and marketing teams nurture leads better. Better nurturing helps move leads down the sales funnel toward a purchase.
The Significance of Sales Leads
Generating leads is the first step in the sales process. This step is often done through prospecting. Without sales leads, there’s not much for your sales team to do. Leads provide the opportunity for sales to pitch your offering to potential customers.
Therefore, a key part of any business’s sales strategy involves identifying potential leads. Then, they must find ways to convert them into customers.
The Bottom Line
To sum up, a sales lead is a potential sales contact or organization that expresses interest in your goods or services.
These leads help you build a robust pipeline and accelerate your sales. That way, you can ensure a steady flow of revenue and growth for your business.