What is demand generation? In simple terms, demand generation is the process of creating demand for a product or service. This can be done through various marketing activities, such as advertising, public relations, and market research, but the ultimate goal of demand generation is to create awareness and interest in a product or service, which will eventually lead to sales.
In demand generation, there are two types of leads that businesses tend to focus on – marketing qualified leads and sales qualified leads?
But what’s the difference between the two – and which type is better for your business? Read on to find out!
What Are Marketing Qualified Leads?
Marketing qualified leads (MQLs) are potential customers who have been identified as more likely to be interested in your product or service than other leads.
MQLs are typically generated through marketing activities such as website visits, trade show attendance, or whitepaper downloads. Once a lead has been identified as an MQL, they are then handed off to the sales team for further nurturing and qualification.
The goal of generating MQLs is to help businesses find and cultivate potential customers who are most likely to convert into paying customers. By definition, MQLs are not yet ready to make a purchase, but they are further along in the buying process than other leads.
As such, they require more targeted and specialized sales and marketing efforts in order to move them closer to becoming customers.
While the definition of an MQL can vary from business to business, they are generally considered to be leads that have demonstrated an active interest in a company’s products or services and possess the necessary budget and authority to make a purchasing decision.
By generating more MQLs, businesses can improve their chances of making sales and achieving their overall growth objectives.
What Are Sales Qualified Leads?
A sales qualified lead (SQL) is a type of prospect that has been vetted by marketing and determined to be ready to enter the sales funnel – it’s one step further than an MQL.
In order to be considered a SQL, a lead must meet certain criteria, such as having a specific job title, being located in a certain geographic area, or expressing interest in a particular product or service.
Once a lead has been identified as a SQL, it will be passed on to the sales team for further nurturing and follow-up. The goal of SQL generation is to help sales teams focus their efforts on high-quality prospects who are more likely to convert into customers.
How to Generate MQLs
To generate MQLs, you need to create content that educates and informs potential customers about your solution to their problem. This content can take the form of blog posts, ebooks, infographics, webinars, or even just simple social media posts.
Once you’ve created this content, you need to make sure it’s easy for potential customers to find it. This means promoting your content through SEO, social media, and email marketing. If done correctly, this will result in more traffic to your website and more leads for your sales team to follow up on.
How to Generate SQLs
There are a number of ways to generate SQLs, but the most effective method is through targeted lead generation. This involves identifying the key characteristics of your ideal customer and using that information to create targeted marketing campaigns.
For example, if you sell software that helps businesses manage their inventory, you would want to target your marketing efforts toward businesses that have large inventories. By targeting your marketing efforts, you can significantly increase the number of SQLs you generate.
In addition to targeted lead generation, there are a number of other effective methods for generating SQLs. These include lead nurturing, lead scoring, and creating compelling offers.
Why is it Important to Know the Difference Between MQLs and SQLs?
For any business that relies on generating leads, it is essential to know the distinction between MQLs and SQLs. This knowledge informs the type of content and approach that should be used.
For example, MQLs might benefit from educational content that helps them to understand the product or service, whereas SQLs might be more responsive to a hard sales pitch.
By understanding the difference between MQLs and SQLs, businesses can more effectively generate leads and close sales – meaning knowing the ins and outs of both can dramatically impact your bottom line.
How to Convert an MQL into an SQL
The goal of converting an MQL into an SQL is to get them interested enough in your product that they’re willing to speak with a salesperson. Here are a few tips for converting an MQL into an SQL:
● Institute a lead scoring system. This will help you to identify which leads are the most qualified and ready to be converted.
● Nurture your leads. Keep sending them relevant information about your product or service through email, social media, or other channels.
● Make it easy for them to reach out. Provide multiple ways for leads to contact you, such as phone, email, and online forms.
● Train your sales team on how to handle MQLs. They should know how to assess whether a lead is ready to be converted and what type of approach to take.
Now that you understand the difference between MQLs and SQLs, it’s time to start putting this knowledge into practice. If you don’t have a system in place for qualifying your leads, now is the time to create one.
By using marketing qualified leads vs sales qualified leads, you can make sure that your team is making the most of their time – and your budget. Remember, an effective lead generation strategy will result in more closed deals and happy customers. So what are you waiting for? Start today!