What is lead qualification?

In sales, your time is precious. So, why spend it pursuing leads that won’t turn into customers? Lead qualification is all about figuring out which leads are the right fit for what you offer and most likely to turn into paying customers. It’s like filtering through the noise and focusing on what really matters, so you can put your energy where it counts – on the leads that are a match for your product or service. 

Why is lead qualification important? 

By identifying the right prospects early on, you can spend more time with those who are truly interested and ready to buy, helping you close deals faster and more effectively. Instead of wasting time chasing unqualified leads, you’re focusing on the ones most likely to convert into paying customers. This makes your sales process smoother and more efficient, ultimately increasing your chances of hitting your targets. 

When you qualify leads, you’re not just saving time; you’re also increasing your sales efficiency. You’ll know where to focus your efforts and which leads need more nurturing, making your sales team more productive and effective. It also helps you avoid wasting resources on people who aren’t the right fit, giving your team a clearer path to success. 

In the end, lead qualification isn’t just about selling more; it’s about selling smarter. It helps you maximise your efforts and increase your chances of long-term success. It’s a win for both your sales team and your customers. 

Qualified leads vs. unqualified leads 

Unqualified leads 

Unqualified leads are the ones that just don’t make sense for your business. Maybe they’ve shown some interest, but when you dig a little deeper, it’s clear they don’t need what you’re offering. Here’s why they might be unqualified: 

• They don’t need your product or service. Maybe they’re in a completely different industry, or they simply don’t have a matching need. 

• You can’t serve them effectively. If you’re a small business and they need large-scale orders, you may not have the capacity to deliver. 

• If they can’t afford what you offer, then it’s not a good match. 

But don’t worry—unqualified leads don’t mean failure! They’re just not ready for you right now. Keep them in mind, nurture them, and you might see some of them warm up in the future. 

Qualified leads 

Qualified leads are like gold dust to your business, they’re the people who really care about what you’re selling and could turn into customers. They know what you have and how it can help them. You can sort these leads into three main groups: 

• Information qualified leads (IQL) – These are the cold leads. They’re at the top of the funnel, searching for information, still in the early stages of their buyer journey. They might not be ready to buy, but they’re willing to exchange their contact details for useful content, for example blog posts, a whitepaper, etc.  

• Marketing qualified leads (MQL) – These are leads that are starting to show interest. They’re interacting more with your content by downloading resources, visiting your website often, and subscribing to newsletters. While they’re definitely interested, they still need some extra nurturing before they’re ready to make a decision. 

• Sales qualified leads (SQL) – These are the leads that are most likely to convert into customers. They’re at the final stage of the sales funnel, they know exactly what you offer, and are on the verge of making a purchase. These leads should be the primary focus for your sales team. 

The popular lead qualification frameworks 

Several well-known frameworks can help you with lead qualification. The best choice for you will depend on the kinds of prospects you usually work with and the specific challenges you encounter in your sales process. Here’s a look at four well-known frameworks:

1. BANT

BANT has been around since the 1960s and was developed by IBM. It’s a simple framework that helps you quickly evaluate leads based on four criteria: 

• Budget – Does the prospect have the budget to buy what you’re offering? 

• Authority – Are you talking to the decision-maker, or do you need to connect with someone else in the company? 

• Need – What problem is your prospect trying to solve? Does your product fit that need? 

• Timeline – When does the prospect plan to make a purchase? 

BANT is great for sales teams who need a quick, straightforward way to filter leads. But keep in mind, it can sometimes feel a bit rigid or impersonal if you’re not careful with how you ask questions. If your prospects are already eager to make a purchase, BANT might be a good fit for you. 

2. GPCTBA/C&I

GPCTBA/C&I is a more detailed framework, created by HubSpot to reflect today’s more informed buyers. It digs deeper into understanding your prospect’s situation, goals, and challenges. 

• Goals – What are the prospect’s big objectives, both short-term and long-term? 

• Plans – How do they plan to achieve those goals? What’s worked for them before? 

• Challenges – Why is now the right time to solve their problem? What challenges are they facing? 

• Timeline – When do they want to implement their plans? 

• Budget – Do they have the budget for your solution? 

• Authority – Who makes the purchasing decision? 

• Consequences and implications – What happens if they don’t solve their problem? How will they be affected? 

This framework focuses on getting to know your prospects by deeply understanding their goals, challenges, and the consequences of not solving their issues. If you want to position yourself as a trusted advisor who understands your prospect’s pain points, this could be a great fit.

3. CHAMP

The CHAMP framework flips BANT on its head. Instead of starting with the budget or authority, it begins by focusing on the prospect’s challenges. 

• Challenges – What problem is the prospect trying to solve? How are their current solutions failing? 

• Authority – Do you have access to the person who can make the purchase decision? 

• Money – Does the prospect have the budget for your solution? 

• Prioritisation – How urgent is this challenge for the prospect? Are they actively looking for a solution, or is this something they’ll address later? 

CHAMP is perfect for understanding the prospect’s pain points first, then guiding them toward a solution. If you have warm leads that are still exploring options and are unsure if your solution fits, CHAMP helps you build a consultative relationship. It’s a great way to lead with empathy and show you truly care about solving their problem.

4. MEDDIC

MEDDIC is a framework designed for larger, enterprise-level sales with a more complicated buying process. It involves digging deep into the decision-making structure within the prospect’s organisation. 

• Metrics – What quantifiable results is the prospect looking for? How will your solution impact their bottom line? 

• Economic buyer – Who controls the budget? Who is ultimately responsible for the purchase? 

• Decision criteria – What factors will influence the purchasing decision? 

• Decision process – How does the company make purchasing decisions? What steps are involved? 

• Identify pain – What specific problem is your product solving for the prospect? 

• Champion – Who within the organisation will advocate for your solution? 

MEDDIC ultimately helps you navigate decision-making hierarchies and ensures you understand the deeper needs and goals of your prospect. If you’re dealing with a big sale or a long buying cycle, this framework can help you manage it effectively. 

Lead qualification checklist 

A solid lead qualification process can make all the difference between closing a deal and wasting valuable resources. To streamline this process, think of a checklist as your guide to ensure no important factor is overlooked. It’s an easy way to assess each lead methodically, helping you filter out the unqualified ones and focus on the prospects with the highest potential. Here’s a go-to checklist: 

• Are they genuinely interested? 

• Do they have a real use for your product or service? 

• Do they have the budget? 

• Is now the best time for them to buy? 

• Are they the decision-maker? 

By asking these key questions, you can quickly determine whether a lead is qualified or not. And just like a to-do list keeps you on track, this checklist ensures that you’re spending your time with the right prospects. If a lead doesn’t tick all the boxes, they might not be ready for a sale, but you can always nurture them until they are! 

Introducing Moneypenny 

Qualifying leads is important, but let’s not forget the crucial first step, capturing them! After all, no matter how great your qualification process is, if you’re not capturing every lead that comes your way, some will inevitably slip through the cracks. That’s where Moneypenny comes in. As the #1 telephone answering provider, our UK-based team works as an extension as yours and ensures that every lead is captured. 

With Moneypenny on your side, you’ll never have to worry about missed opportunities. Want to see for yourself how we can help your business generate more leads? To learn more, chat to our team today on 0333 202 1005.