As marketing strives to attract and convert site visitors into leads, sales must be set and waiting at the other end to turn Qualified Leads to opportunities and customers. It’s quite critical to focus on how both MQLs and SQLs transform into revenue. To examine these conversions, you need a strong connection between Sales and Marketing. Knowing your target market and their behaviors will help you figure out which leads need to be nurtured, and who is ready for a sales call. To improve the productivity and performance of your sales team, give them fewer High-Quality Leads.
What is Sales Qualified Lead and how it helps to win Conversion Rate?
Sales Qualified Leads (SQLs) are individuals that your sales team has accepted as ready for a direct sales follow up. This stage will helps your sales and marketing teams stay in sync concerning the quality and strength of leads that you are handing over to your sales team.
How do you know which leads are gold? IT ALL STARTS WITH MARKETING
Marketing Qualified Leads have known themselves as more engaged than other leads, but they’re not quite ready to buy than Sales Qualified Leads. Depending on your sales cycle, you may have various stages of MQLs. Some might be very specific whereas high-interest activities should trigger the promotion of a lead to an MQL. Once sales have followed up with MQL’s and found them high quality, they become SQLs. By linking sales and marketing, the focus keenly goes on high-quality leads, which boosts conversions.
So, you must embrace your data. Take a hard look at your funnel and your growth rates through every step and design a plan of action that will help you and your team to improve performance and increase the growth rate.
Lead Stages under Sales Funnel
Most of the time, marketing leads are the hottest priorities for sales individuals. As a salesperson, you would have a customary manner of running through the web, newspapers, TV, flyers and other media to find whether there are any effective marketing opportunities out there.
How you can excel your Marketing Qualified Leads to Sales Qualified Leads
The very first step is to look at Average Sales Cycle Length, to understand over what timeframe you should expect an MQL to convert on average and factor that into the KPI calculation. For example, you take 3 months to convert from MQL to SQL, you should take SQLs created in month 3rd month and divide it by MQLs created in 1st month.
MQL & SQL Tracking for Relevant Sales Metrics:
If you’re adding MQL to SQL Conversion Rate to your sales KPI, you should also track these related sales metrics for context.
- 1. Average Sales Cycle Length
- 2. SQL to Win Conversion Rate
- 3. Average Purchase Value
The sales metric MQL to SQL Conversion Rate is also known as Lead to Opportunity Conversion Rate. Some businesses add a stage after SQL which is Sales Accepted Lead (SAL) when an Account Executive accepts the lead from a Sales Development Rep, which will propose different conversion rates and length of time.
Sales Metrics You Need to be Hot on the Trail for Tracking
- 1. Time Spent Selling
- 2. Lead Response Time
- 3. Opportunity Win Rate
- 4. Sales Pipeline Coverage (SPC)
- 5. Customer Acquisition Cost (CAC)
- 6. Customer Lifetime Value (CLV)
- 7. Sales Cost Ratio
- 8. Monthly New Leads
- 9.Monthly Sales
It’s of utmost importance to look beyond quotas and revenue to see which portions are influencing their team’s ability to succeed. Tracking the nine sales metrics listed above will help you recognize the reason for any spikes and dips in your sales, so you can replicate whatever your team is doing right and fix any problems that are blocking your success.
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