Lead qualification is the process of evaluating leads to determine their potential value to an organization. The goal of lead qualification is to identify the leads that are most likely to convert into customers and to prioritize those leads for follow-up. In order to qualify leads effectively, most companies use a combination of implicit and explicit values.
Explicit values include demographic information (such as location, occupation, education, and income) and firmographic information (such as industry, company size, and revenue). These values can be gathered through form submissions or lead enrichment software.
Implicit values are related to behavioral or transient information including how interested they are in your products and services and if they are ready to buy. These values can be gathered by observing how prospects interact with content like your website or by speaking with them directly in a sales conversation.
Given that lead qualification can require a lot of information it is efficient to automate the process as much as possible. A common form of automated qualification is lead scoring, which weights known implicit and explicit values of your leads to generate a score to qualify and prioritize leads.
But even the best lead scoring models still require some manual effort to validate their results and gather additional information. One of the most effective techniques used by sales teams during this stage is called BANT:
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Budget: Does the lead have the budget to purchase the product or service being offered?
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Authority: Does the lead have the authority to make purchasing decisions for their organization?
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Need: Does the lead have a need for the product or service being offered?
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Timing: Is the lead ready to purchase now or in the near future?
This framework was originally developed by IBM and has been tried and true for over 70 years. As one of the first steps in sales outreach, BANT allows sales personnel to determine upfront if there is the potential for a sales opportunity to develop. This allows them to allocate more of their time toward selling to qualified leads.
The Takeaway
Lead qualification is an important step in the lead management process, as it helps businesses prioritize their lead follow-up efforts and focus on the leads that are most likely to convert into customers. By properly qualifying leads, businesses can improve their conversion rates and increase their overall sales and marketing effectiveness.
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