Sales and marketing are two strong pillars of success and growth in any business. They are like a tag team, seamlessly passing the baton.

While marketing focuses on promoting products and services to establish brand awareness and attract leads, sales plays a crucial role in nurturing these leads through the funnel, guiding them toward the point of purchase.

To optimize the funnel, lead nurturing is an indispensable part of the process. The first big decision to take in the lead nurturing process is to separate marketing qualified leads (MQL) from the sales qualified leads (SQL).

See, whenever a new lead is generated, it may not immediately qualify as a sales lead. Marketers and SDRs come across different types of leads - SQLs, MQLs, cold leads, warm leads, hot leads, and more. The main challenge is to identify which of these leads are ready to make a purchase. Some leads may be in the awareness stage, while others are more than ready to invest in your product.

So, how do you differentiate these leads?

The rest of the article will now focus on what is SQL and MQL, emphasizing their importance in sales and marketing. It will highlight the top 7 differences between them.

MQL Vs. SQL Meaning

What is MQL (Marketing Qualified Lead)?

MQL or marketing-qualified lead refers to a lead (can be an individual or an organization) that has shown interest in your product or service via any marketing promotions and has engaged with them. This engagement can vary from a simple ebook download to an inquiry via a social media post.

In short, These leads have shown interest in a company's products or services through various marketing efforts and are deemed ready for further engagement by the sales team.

Examples of MQL include:

• A website visitor who has downloaded a whitepaper or eBook related to your company's product or service.
• A lead who has responded positively to an email campaign by clicking on links or replying to the message.

What is SQL (Sales Qualified Lead)?

A sales-qualified lead or SQL refers to a lead that has a buying intent. They have already surpassed the awareness stage of their buyer journey and are now in the consideration stage.

SQLs, being further along in the buyer journey, often seek more in-depth content and information to be able to make informed purchasing decisions like case studies, product demonstrations, pricing details, and more.

Examples of SQL include:

• Lead that engaged in detailed discussions with you about specific features and functionalities of your product.
• Requested a personalized pricing quote tailored to their business needs.

Top 7 differences - MQL Vs. SQL

1. Intent to buy

One of the significant differences between MQL and SQL is the intent to buy. MQLs demonstrate an interest in the product or service but may need a more apparent intent to purchase immediately. SQLs, on the other hand, have a higher level of intent to buy and are actively considering purchasing.

For example, someone who just signed up for your newsletter is not necessarily looking to purchase your product or service. You will not forward such leads to your SDRs.

Instead, from here, the journey of transitioning your MQLs to SQLs can start (I will discuss more on this later).

2. Top-funnel vs bottom-funnel content

The type of content your leads are interested in also differentiates whether they want to buy or are just researching.

MQLs are typically interested in top-of-the-funnel content such as blog posts, eBooks, and educational resources. SQLs, however, tend to engage with bottom-of-the-funnel content such as case studies, product demonstrations, and pricing information.

For example, An MQL might read a blog post about project management tips and download an eBook. They're gathering general information but may need more time to be ready to buy.

An SQL, however, seeks more detailed content. They dive into case studies showcasing how the software has helped similar companies, request product demos, and inquire about pricing. They're actively evaluating the software for potential purchase, indicating more profound interest.

3. Decision-making stage

MQLs are still in the early stages of the decision-making process and may require more nurturing before purchasing.

SQLs, on the other hand, are closer to making a decision and may require more direct sales engagement to move them through the sales pipeline.

4. First time vs repeat visitor

MQLs may be first-time visitors to the website or have limited interaction with the company's content.

SQLs, on the other hand, maybe repeat visitors who have engaged with multiple pieces of content and have shown sustained interest in the product or service.

5. Conversion/Engagement count

MQLs are typically measured based on lead generation metrics such as website visits, form submissions, and downloads. However, these conversions often represent initial engagements and may not necessarily indicate a strong intent to purchase.

In contrast, SQLs are measured based on conversion metrics such as sales calls, product demos, and purchases. SQLs tend to have a higher conversion count as they have actively engaged with multiple communications and promotional offers, signaling a deeper level of interest and readiness to progress through the sales funnel.

6. Referral channel

Every good business has multiple marketing channels - email marketing, social media, website, and more.

Not every marketing channel performs equally well - it depends on your industry type and buyer persona.

However, you can understand what channel is bringing the maximum engagements quickly. It can be email marketing, social media marketing, or paid marketing.

MQLs are mostly scattered across multiple channels such as social media, email marketing, or organic search. SQLs may come from more targeted channels, such as referral programs, direct sales outreach, or personalized email marketing campaigns.

7. Contact requests

Contact requests are when a lead requests to be contacted, which is the simplest way to differentiate between MQL and SQL.

Most of the time, you as a marketer or a sales representative might request to book a call from your leads; if this is the other way around - then it is undoubtedly somebody who has a strong intent to buy, thus an SQL.

MQLs may submit general contact forms or inquire about the product/service, seeking more information. However, they typically do not express a direct request to be contacted.

SQLs, on the other hand, are more likely to request specific information such as pricing quotes, product demos, or consultations with sales representatives.

Why differentiate between MQL and SQL?

The most significant benefit of correctly marking a lead as a marketing-qualified or a sales-qualified one can be seen in the lead nurturing process.

Understanding where leads are in the buyer's journey allows for tailored nurturing strategies.

You wouldn't send advanced-level content to a lead still in the awareness stage, just as you wouldn't immediately pitch a sales call to a lead in the early stages of their buying journey.

MQLs may require further education and nurturing to progress them through the sales funnel, while SQLs may need more direct sales engagement to close the deal.

Another reason why you need to distinguish between MQL and SQL is effective resource allocation. By distinguishing between MQLs and SQLs, sales and marketing teams can allocate their resources more efficiently. They can prioritize high-quality SQLs for immediate sales engagement, ensuring that sales efforts are focused on leads with the highest likelihood of conversion.

Eventually, by focusing sales efforts on SQLs who have already demonstrated a solid intent to purchase, conversion rates are likely to increase, and so is your ROI.

How do you transition a lead from MQL to SQL?

Remember we talked about transitioning a lead from MQL to SQL in the earlier sections of the article? Let’s dig deeper to understand what it entails.

To smoothly transition a lead from MQL to SQL, your sales and marketing teams must be aligned and on the same page.

We can sum up the whole process in these significant steps:

1. Lead scoring and qualification

Lead scoring is quite similar to its name. It assigns a numerical value to each lead you generate for the business. Lead scoring aims to prioritize leads and identify those with the highest likelihood of conversion into customers.

Now, this value and the factors can vary from industry to industry.

For example, in a software-as-a-service (SaaS) industry, lead scoring criteria may include factors such as engagement level, demographic information (specific industries or company sizes), and behavioral indicators such as leads who have interacted with the company's content multiple times, attended webinars, or requested a product trial may receive higher scores.

Lead scoring is a great way to save SDRs time and help them focus on leads they are interested in purchasing from them.

2. Threshold determination

Threshold determination involves setting a predetermined score threshold to distinguish Marketing Qualified Leads (MQLs) from Sales Qualified Leads (SQLs). Based on established lead scoring criteria, this threshold score signals when a lead is deemed sales-ready.

For instance, a software company might determine that leads with a score of 75 or higher qualify as SQLs, indicating a high likelihood of conversion. This threshold guides the handoff process from marketing to sales, ensuring efficient lead management and alignment with business objectives.

3. Lead handoff

Lead handoff transfers a lead from marketing to sales once it qualifies as a Sales Qualified Lead (SQL). This transition involves using a CRM system to notify the sales team and provide relevant lead information (if you’re using one, though it is highly recommended that you do).

Sales representatives then engage with the lead, scheduling follow-up activities like calls or demos to guide them through the sales process and maximize conversion potential.

4. Sales engagement

Once a lead has been identified as an SQL, sales engagement becomes pivotal in nurturing the lead toward conversion.

Sales engagement involves various activities to build rapport, address concerns, and ultimately persuade the lead to make a purchasing decision.

This may include initiating contact via email or phone, engaging in personalized conversations to understand the lead's needs and pain points, and providing tailored solutions.

5. Feedback loop

The feedback loop is a crucial aspect of the lead management process, facilitating continuous improvement in sales and marketing strategies. It involves collecting insights from both teams, analyzing performance metrics, and refining approaches based on the findings.

While SQLs are deemed sales-ready, not all may convert immediately. In such cases, sales development representatives (SDRs) should provide feedback and roll back unconverted SQLs to the marketing team for further nurturing. This iterative process ensures ongoing optimization and alignment between sales and marketing efforts.

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