The Ultimate Guide to Understanding B2B Lead Types with BetterFeedback.ai
Navigating the world of B2B leads can feel like deciphering a secret code. You've got marketing campaigns humming, demo requests trickling in, and sign-ups popping up left and right. But let's face it: not every lead is created equal. Someone actively using your freemium product is far more likely to become a paying customer than someone who simply downloaded a whitepaper.
That's where understanding the nuances of B2B lead types comes in. What's the real difference between a marketing qualified lead (MQL) and a sales qualified lead (SQL)? And what exactly is a product qualified lead (PQL)?
At BetterFeedback.ai, we're passionate about helping businesses bridge the gap between their teams and their leads. Let's break down the different B2B lead types, explore their unique characteristics, and uncover how effective lead categorization can drive serious results.
What exactly is a Lead?
"Lead generation" and "customer acquisition" are the reigning champions of marketing buzzwords. But before diving into the latest strategies, let's level-set on what we actually mean by "lead."
Simply put, a lead is someone who has expressed interest in your product or service. Now, this interest can manifest in countless ways, resulting in a spectrum of leads ranging from those barely aware of your existence to those actively using your product.
So, what factors set these leads apart? Keep reading to find out.
Unqualified Leads
The notion of “every lead is a good lead” is simply untrue. While it's a great ideal to strive for, you must focus on your best lead generation efforts. Sometimes, people are just browsing. Other times, they realize quickly that you aren't the best fit.
These leads fail to meet the requirements for moving through the sales process, and are known as unqualified leads. These unqualified leads haven't taken actions or don't have the characteristics to indicate buying intent. Such characteristics might include:
- A lack of understanding of your products and services
- Uncertainty of what they want or need in a solution
- Affordability and budget limitations
- Not being a good fit or the ideal customer
These unqualified leads are not ready to move through the sales process, but don't let this discourage you.
These leads might not understand your services, but they'll need educational material that can be of benefit to them. Over time, you can move these unqualified leads to warmer, hotter ones. Don't give up on these leads, but nurture and educate them.
Cold Leads
Cold leads usually haven't interacted with your business, and don't know what you sell or how it can help them. Typically, they haven't expressed any interest in your company. Alternatively, they may have been leads in the past, who have lost interest.
Oftentimes, sales teams will cold email or call these leads, to tell them how your business can solve a pain point. They may often fit your ideal customer profile, but need nurturing before moving through the sales funnel.
Warm Leads
While cold and unqualified leads may turn into customers, starting with warm leads can speed up this time frame. What is a warm lead?
Warm leads have already expressed interest in your product or service, and are aware of your company.
Sam is a warm lead, and we can determine that by their actions:
- Subscribed to your email newsletter to access gated content (5 Points)
- Read two blog posts (5 Points)
- Registered for one of your webinars (15 Points)
- Visited your pricing page multiple times in one week (40 Points)
They have a total score of 65 points, which your business has determined to be a warm lead. To convert them, emails, tailored content, and targeted marketing are your best bet.
Hot Leads
Hot leads are the best type of sales leads, and can be a dream for any business. While nurturing may not be required before converting, they're typically marketing, sales, or product qualified leads who are ready to buy.
Here's what the score of a typical hot lead may look like:
- Registered for 5 webinars this month (75 points)
- Contacted a sales rep (50 points)
- Clicked on a blog call to action (10 points)
- Requested a product demo (25 points)
They have a total score of 160, which makes them steaming hot and a great lead. To convert quickly, have a sales rep immediately reach out to them to gather more information. Be sure to obtain buying authority, timeline to purchase, and budget.
Ineffective lead management can turn hot leads into cold leads, so stay on top of these leads!
Understanding Qualified Leads
Many organizations group qualified sales leads into three main categories, though qualification can vary from business to business. The categories include:
- Sales qualified leads (SQLs)
- Marketing qualified leads (MQLs)
- Product qualified leads (PQLs)
These leads have been qualified by sales-driven contact, marketing efforts, or product usage. Let's see what sets each category apart.
Marketing Qualified Leads (MQLs)
When generating leads, many think of the marketing team and their omnichannel campaigns. Bringing in sales leads doesn't solely fall with marketing, but they're responsible for bringing in qualified leads that sales can turn into paying customers.
They often create marketing campaigns, content, and experiences like:
- Sales pages
- Social media content
- Blog posts
- Email sequences
- Webinars
- Downloadable assets
- Live interactive events
When someone expresses interest in the brand through marketing efforts, they become a marketing qualified lead.
Sales Qualified Leads (SQLs)
Marketing qualified leads have shown interest in what you do, and are ready to buy. But sales qualified leads are red-hot, and know who you are. They are usually a great fit for your product or service.
MQLs and SQLs do have similarities, but their key difference is where they are in the funnel. Sales qualified leads are looking to buy, and are further along the pipeline.
Product Qualified Leads (PQLs)
Product qualified leads are the best, and are already sold on your product. All sales needs to do is convince them to upgrade to a paid plan.
They have already experienced the value of your product first hand, and are ready to take the next step!
Aligning on Lead Qualification (and Beyond)
If you work in marketing or sales, you probably know about the lead blame game. Sales blames marketing for sending unqualified leads, and marketing blames sales for not following up and fumbling MQLs.
The lead blame game can create mistrust, disagreements on qualified sales leads, and ripple effects throughout the organization.
Put simply, lead generation efforts will go to waste if sales and marketing aren't aligned. This can have broader impacts, like missed opportunities, lost data, and a poor customer experience.
Getting Everyone on Board with BetterFeedback.ai
We all define sales leads, and what qualifies each of them, differently. Industry-wide definitions are useful to understand, but you must get your teams aligned on how you define your leads, and what makes a good lead for your business.
To do so, leverage your data. Product usage, content downloaded, and CTAs clicked can be combined with enriched data to get a more complete picture of your leads. That will give you the insights you need to tailor a sales process that converts.
BetterFeedback.ai helps you gather critical feedback at every stage of the customer journey. By understanding their needs and pain points, you can refine your lead qualification process, ensuring that your marketing and sales teams are perfectly aligned in targeting and converting the right leads.
Ready to transform your lead generation? Explore BetterFeedback.ai today and start turning more leads into loyal customers.