Introduction
While generating Marketing Qualified Leads (MQLs) is crucial, it’s only the beginning of the sales journey. To achieve organizational success, it’s essential to nurture leads further down the funnel. This blog will discuss the importance of transitioning MQLs into Sales Qualified Leads (SQLs) and ultimately Sales Accepted Leads (SALs) through effective lead nurturing strategies and Service Level Agreements (SLAs).
From MQL to SQL: Qualifying Leads for Sales
Once a lead meets the scoring criteria for an MQL, sales development teams evaluate their potential to become SQLs. SQLs demonstrate stronger purchase intent and meet specific criteria that make them high-priority targets for sales efforts.
Qualifying SQLs
- Discovery Calls: In-depth conversations to understand the lead’s needs, pain points, and timeline for purchasing.
- Assessing Budget, Authority, Need, and Timeline (BANT): This qualification framework helps sales teams determine if the SQL has the necessary budget, decision-making authority, specific needs that your product addresses, and a reasonable purchase timeline.
To Call or to Email: The MQL Dilemma
One of the perennial questions in sales development is whether to prioritize calls or emails when reaching out to Marketing Qualified Leads (MQLs). The answer isn't always straightforward and often depends on various factors, including:
- Lead Quality: Higher-quality MQLs, often indicated by strong engagement metrics or ideal customer profile (ICP) fit, may warrant a more immediate, personalized approach like a phone call.
- Lead Preference:
Some leads may prefer email communication, while others may be more receptive to a phone call or LinkedIn InMail message.
- Sales Team Capacity: If your sales team is overwhelmed, prioritizing email outreach can be a more efficient way to engage with a larger number of leads.
Who Writes the Emails?
While sales development representatives (SDRs) are typically responsible for executing outreach, the creation of effective email templates is often a collaborative effort between marketing and sales. Marketing can provide the initial framework, ensuring brand consistency and messaging alignment, while sales can offer insights into what resonates with prospects and personalize the message for each MQL.
CRMs for Efficient MQL Management
A robust CRM is essential for managing MQLs effectively. Here are a few popular options:
- HubSpot: A comprehensive CRM platform that offers features like lead scoring, email marketing, and sales automation.
- Salesforce: A powerful CRM solution that can be customized to meet specific business needs.
- Pipedrive: A user-friendly CRM that focuses on sales pipeline management and deal closure.
By carefully considering these factors and leveraging the right tools, sales development teams can optimize their MQL outreach strategies and drive revenue growth.
Transitioning to SAL
Successful discovery calls result in the lead being classified as a Sales-Accepted Lead (SAL). At this stage, the lead is passed from the sales development representative to a more senior account executive, who reaches out to the SAL through various channels like email, phone, or social media to nurture the relationship and hopefully close the deal. If the SAL is successfully converted into a customer, the sales process is complete. By using the SAL process, companies can improve their sales efficiency and focus on the most promising leads, increasing their chances of closing deals.
The Role of SLAs In Revenue Growth
A service level agreement (SLA) between marketing and sales is a formal agreement outlining expectations, goals, responsibilities, and performance metrics for both teams. It ensures alignment, accountability, and transparency. Key components of a marketing-sales SLA often include:
Lead Generation and Qualification:
Marketing's Commitment:
- Deliver a specific number of qualified leads per month or quarter.
- Ensure lead quality by adhering to a defined lead scoring model.
- Provide accurate and up-to-date lead information, including contact details, company information, and engagement history.
Sales' Commitment:
- Contact all qualified leads within a specified timeframe.
- Provide feedback on lead quality and conversion rates to the marketing team.
- Update the CRM system with accurate and timely information on lead interactions and outcomes.
Lead Handoff and Follow-up:
Marketing's Commitment:
- Provide clear and concise lead handoff documentation, including lead source, qualification criteria, and relevant marketing materials.
- Schedule regular meetings with the sales team to discuss lead quality, pipeline health, and any issues.
Sales' Commitment:
- Acknowledge receipt of leads within a specified timeframe.
- Follow up with leads consistently and persistently, adhering to the established sales process.
- Provide regular updates on lead progress and pipeline forecasts.
Data Sharing and Reporting:
Marketing's Commitment:
- Provide timely access to marketing analytics and reports to the sales team.
- Share insights on customer behavior, market trends, and competitor activity.
Sales' Commitment:
- Share sales activity data, including call logs, email correspondence, and meeting notes, with the marketing team.
- Provide feedback on the effectiveness of marketing campaigns and lead generation efforts.
Performance Metrics:
Key Performance Indicators (KPIs):
- Number of qualified leads generated per month
- Lead conversion rate
- Average deal size
- Sales cycle length
- Customer acquisition cost
Regular Review and Adjustments:
Both teams will meet regularly to review performance metrics, identify areas for improvement, and make necessary adjustments to the SLA.
By establishing a clear and measurable SLA, marketing and sales teams can align their efforts, improve efficiency, and ultimately drive revenue growth.
Benefits of SLAs
- Bridging the Gap: SLAs prevent conflicts and misalignment by defining lead handoff criteria and quality standards.
- Setting Measurable Goals: Clear benchmarks for both marketing and sales teams.
- Feedback Loop: Continuous improvement through feedback on lead quality.
Personal Experience: When SLAs Fail
Without leadership enforcement and a shared vision, even well-designed SLAs can be ineffective. In my experience, organizations that prioritized individual targets over collaboration often struggled to meet pipeline goals.
Focusing on the North Star Metric: Pipeline
Ultimately, organizational success depends on a healthy and growing pipeline. By optimizing your funnel through effective lead nurturing and clear SLAs, you can achieve your pipeline targets and drive revenue growth.
Conclusion
Nurturing leads through the funnel is critical for any company or higher education institution. By effectively qualifying leads, transitioning them to SQLs and SALs, and implementing strong SLAs, organizations can maximize their marketing and sales efforts and achieve their revenue goals. Reach out to UrPath to learn how we can help you optimize your funnel.