MQL vs. SQL: When and How to Transition Leads from Marketing to Sales

The different types of people or leads who have shown an interest in your product or service is called as MQL and SQL. MQL refers to Marketing Qualified Lead, and SQL is Sales Qualified Lead. A potential customer who has expressed interest in your product and can nurture into a future sale is called a MQL. But they are not ready to buy right now. An SQL make a purchase by speaking to the sales team.

Marketing Qualified Leads or MQLs, are leads who have expressed interest in a brand or product based on marketing campaigns and brought in through marketing efforts. They are more likely to make a purchase than the average shopper.

MQLs can be identified by marketing teams by revising and comparing inbound leads to predefined criteria. People are identified as MQLs to sales teams when factors like interest, engagement, and demographic qualify them as viable customers, who pursue them further.

Sales Qualified Leads or SQLs, are leads that have already been assessed and researched by the marketing and sales teams of a business. These prospective customers are considered ready to engage with sales representatives directly as they have shown a genuine interest in buying whatever a brand has to offer. Although, every SQL will not guarantee a sale, but SQLs are the highest-quality lead and much more engaged in what a company sells. These are easier deals to close.

There is a distinct difference between MQL and SQL. A marketing qualified lead is a prospect that pose potential value for a company. They are identified and assessed by marketing teams. An MQL can be engaged with the company  through either a web form or white paper download. An MQL will only shown interest in the products or services of a company until this point.

Usually, an SQL will engage with the company directly either through a phone call or meeting, and has shown explicit interest in the products or services of a company. These leads are the hottest and are most likely to turn into paying customers.

A furniture store is sending out emails, running ads, and promoting special deals through their social media channels to increase sales. It is been running a marketing campaign to attract new leads. The person who clicks on one of the ads of the store and visits their website would be considered an MQL. They may have shown some interest in what the store sells but are not committed to buy anything. The same person would then be considered an SQL if they had fill out a form on the website requesting more information about a specific product. This person is interested in buying and is more likely to make a purchase from the store.

Suppose, a real estate company is running a targeted ad campaign on Facebook for new leads. The customer will look around and clicks on a few different listings after been attracted by one of the ads and clicks through to the website of the company. The marketing team of the real estate company considers this person an MQL based on their interactions. The customer will become an SQL when he/she fills out a form requesting more information about one of the listings. The real estate company will then comes to know they are interested in buying a property.

A clothing retailer is running a marketing campaign centered around a new line of fall jackets to increase sales. Various online and offline channels can be used to get the attention which will lead to a surge in website traffic. Although, not all this traffic will result in sales, but some of it will. The data can be pulled out from their website to see the visitors who have been looking at the new jackets, adding them to their cart, and even starting the checkout process. These individuals are interested in the product which the retailer is selling and now identified as MQLs. The retailer can send them targeted marketing material to turn them into SQLs.

A software company is running a blog series on the various benefits of its product to generate leads. When the sales team reaches out to these leads and comes to know that most of them are already familiar with the product and are interested in learning more, these leads are determined as SQLs. They can begin working with these leads on closing the deal.

To know the difference between an MQL and SQL is essential for the following reasons:

It helps businesses to focus their efforts on the right leads by differentiating MQLs and SQLs. It is of no use for sales teams when they try to sell to someone who has not shown interest in what a company offers. It is also of no use for marketing teams when they try to generate interest in qualified leads who are ready to buy.

The key to a successful sales and marketing strategy is to focus on the right leads at the right time. Businesses can optimize their efforts to ensure they are always working towards generating revenue which is the ultimate goal, by understanding the difference between MQLs and SQLs.

Differentiating between MQLs and SQLs can help improve the ROI of both the sales and marketing team. Businesses can increase the number of deals they close if they focus their efforts on MQLs that are more likely to turn into SQLs, which will in turn lead to generate more revenue and a better ROI for the marketing team.

Similarly, sales teams will be able to close more deals if they can focus their efforts on SQLs that are ready to buy, which will also lead to generate more revenue and a better ROI for the sales team also.

It can help businesses to increase the efficiency of their marketing and sales efforts by understanding the difference between MQLs and SQLs. Businesses can focus on those leads and quickly convert them into customers if they know which leads are more likely to turn into customers which will in turn can help save time and money as well as make the sales and marketing process more efficient.

Typically, the process of moving a lead from MQL to SQL involves the below steps:

Even though, SQLs are the best lead, they are not so easy to find. You have to first convert them from MQLs in many cases. Things that you can do to increase the likelihood of this conversion include:

Nurturing your leads is an essential step in converting a lead from MQL to SQL. Sending them targeted content and up-to-date information on what is going on with your company regularly is involved in this. An email drip campaign is one of the best ways to nurture your leads in which a series of automated emails are sent out over an interval of time and are designed to convert the lead slowly.

Drip campaigns can be effective. But they only work if you already have high quality leads to start with. Therefore, make sure you are only nurturing those leads who are most likely to convert.

Creating targeted content is one of the best ways to move a lead from MQL to SQL. Blog posts, e-books, webinars and helpful guides can be used as targeted content. However, it should be relevant to the interest of lead and offer them value.

Start by taking a look at the buyer's journey if you are not sure of the kind of content to create. An idea of what type of content is most relevant at each stage can be provided by this.

The method of rating leads based on their likelihood of becoming customers is known as lead scoring. You can convert leads from MQL to SQL by using lead scoring as it allows you to focus your efforts on those leads who are most likely to convert.

You can start by assigning points to different criteria that is an indication of interest or purchase readiness to score your leads. For example, some point can be given to leads for each time they visit your website, download any content, or fill a form.

You can rank your leads from highest to lowest once you have assigned points which will help you identify those leads who are most likely to convert so that you can focus your efforts on them.

Sending them to a targeted landing page is another great way to convert leads from MQL to SQL. This page on your website is designed specifically for leads who are interested in what you are selling. A relevant offer, such as a free e-book or trial, and a form for the lead to fill out must be included in your landing page, which will help you get their contact information so that you will follow up with them later.