At Act-On, we know that understanding the marketing qualified lead (MQL) meaning is an essential first step, but how you define MQLs is equally important. Done right, it lays the groundwork for success. Your sales team wants hot leads, right? And lucky you! Because it’s your job to provide them. But filling the pipeline with fantastic leads isn’t always easy … and doing so requires a delicate balance between quantity and quality. Get this wrong and the impacts can be felt downstream, with fewer sales conversions and lackluster revenue.
MQL meaning
A Marketing Qualified Lead (MQL) is a prospect who has shown interest in your company’s product or service by engaging with your marketing efforts, such as downloading content or attending webinars. MQLs are potential leads that need nurturing before being passed on to the sales team for further qualification.
Most organizations define leads in three stages, with MQLs being the first:
- Marketing qualified lead (MQL): Lead accepted by marketing for additional nurture.
- Sales accepted lead (SAL): Sales accepts the lead and agrees to take action.
- Sales qualified lead (SQL): Lead that passed the point of qualification by the development team or sales, and is moving into an opportunity stage.
We’ll focus on the nexus between marketing-qualified and sales-qualified leads. That’s the common ground for sales and marketing teams of all sizes.
Why it’s important to define the lead as qualified
The marketing qualified lead definition is the point at which marketing determines that a lead requires additional nurturing. The first and most important thing to do is for sales and marketing to agree on what a “qualified lead” means. Without a common definition, the two teams work from different playbooks … and that can undermine your results.
Nest, let’s explore the steps to defining MQLs:
Develop a shared definition for MQLs
Partner with your sales team leaders to develop a crystal clear MQL definition to know what they are and what they are not. What often happens instead is that the marketing department defines each of the lead stages but salespeople aren’t in on the process. And that creates a disconnect. When you align on this one critical element, everything downstream flows much easier.
Use your buyer personas as a starting point
Fifty-six percent of organizations report generating higher-quality leads when using buyer personas, and 36% report shorter sales cycles. With this in mind, it’s no surprise just how powerful using personas is for your marketing efforts. But they’re also a fantastic starting point to help define your MQLs.
Why?
You can use the criteria included in your personas to develop your MQL definition (such as industry, job title, etc.). This information, along with behavioral data, can also help define when an MQL is ready to make the leap to SQL.
For example, online behavior, such as engaging with email marketing, attending a webinar, or downloading multiple white papers, can help you better understand where a buyer is on their journey. You can break these data points out to determine the minimum criteria required for an MQL and the criteria to make the transition to an SQL.
Gather feedback from sales
Sit down with your sales team and ask questions like: “What is a sales qualified lead (SQL) for you?” and “What leads are the easiest for you to make contact with and qualify?”
This doesn’t mean that marketing will have to deliver only these types of leads. Still, it’s critical to get as close as possible to a shared definition that is agreeable to sales.
And you want that definition to align with marketing. So, when salespeople get a new lead, they’re not saying, “Hey, they totally aren’t ready to buy,” or “They don’t really meet our qualifications for a good lead.”
Identify key demographic and firmographic qualification factors
Demographic and firmographic characteristics, such as industry, company size, and location, should inform your MQL definition. Collaborate with sales to validate these criteria, ensuring you account for all relevant factors.
Tip: Reviewing buyer personas with your sales team can reveal unexpected qualification factors, improving the accuracy of your lead generation efforts.
Use behavioral data to refine lead scoring
Prospects often indicate their readiness to buy through their actions. Monitor behaviors like time spent on your pricing page, webinar attendance, or multiple downloads of white papers to track interest levels. Incorporating behavioral data into your lead scoring system will help identify when an MQL is ready to move to SQL status.
Tracking this data across channels provides a more complete picture and the data points can be used in lead scoring, giving you the ability to score your MQLs more accurately.
Furthermore, some organizations ask, “Would you like to be contacted by sales?” on their registration forms to make it easy for a lead to self-identify as an MQL who is ready and willing to talk to sales – right now.
Balance quantity vs. quality of MQLs
It’s essential to find the right balance between generating enough leads for your sales team and ensuring those leads are highly qualified. Overly broad MQL definitions lead to wasted time on unqualified leads, while overly narrow definitions may leave your sales pipeline empty.
Work with your sales team to strike the ideal balance between quantity and quality in your MQL strategy.
Revisit your MQL definition quarterly
Defining MQLs isn’t a one-time task. Regularly revisiting and refining your MQL criteria ensures you stay aligned with changing business needs, especially during major events like product launches. Aim to review your MQL definition at least quarterly to stay ahead of the curve.
However, the hardest part of this process is getting it done to begin with. But it’s a wise investment that pays sales and marketing departments back significantly with improved lead quality, shorter sales cycles, and an easier time meeting quotas.
And if you need a little more help attracting new prospects, we’ve got you covered. We outlined our favorite strategies in our eBook “How To Attract More Prospects.”
FAQs
What is an MQL?
A marketing qualified lead (MQL) is a prospect who has shown interest and engagement with your marketing efforts, signaling potential for a future sale. MQLs are typically nurtured before being passed to sales for further qualification.
What is a sales accepted lead (SAL)?
A sales accepted lead (SAL) is a lead that has been reviewed and accepted by the sales team after being passed over from marketing. It represents a transition point where the sales team agrees that the lead is worth pursuing and is ready for further qualification or engagement.
What is a sales qualified lead (SQL)?
A sales qualified lead (SQL) is a prospect who meets specific criteria linked to their likelihood of purchasing. Unlike MQLs, SQLs have shown higher interest in your products and services, increasing the chance of a conversion.
MQL vs SQL, what’s the difference?
A marketing qualified lead (MQL) is a lead that has engaged with your marketing efforts but may not be ready to buy, while a sales qualified lead (SQL) has displayed a stronger likelihood of purchasing, making them ready for direct sales outreach.