Make your startup sales process more effective with lead qualification. Get started with this checklist and insights on qualifying leads in tech sales.
A B2B lead qualification process can buoy or sink your startup’s sales growth.
Equipped with a well-thought-out lead qualification process, your startup sales team can determine how well your solution pairs with your target market and potential customers - and ideally can drive revenue growth. But a poorly planned lead qualification process can damage your sales efforts and stall growth.
When your startup sales team is equipped with a strategic lead qualification process, they can better evaluate how well your solution matches your target market and potential customers - ultimately driving revenue growth. However, a poorly executed lead qualification process can severely impact your sales performance and hinder growth momentum.
Key Takeaways
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Strategic lead qualification enables startups to identify and pursue prospects who align well with their product or service offerings.
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Success in lead qualification depends on asking strategic questions and understanding the prospect's role in purchasing decisions.
What Is Lead Qualification?
Lead qualification involves evaluating a prospect to figure out whether they’re likely to buy your product or service. This ongoing process focuses on conversations with prospects and research about their organizations.
Essential questions in the lead qualification process include:
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Does your contact have purchasing authority or influence over decision-makers?
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Can your solution effectively address their challenge?
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Is their problem significant enough to warrant investment?
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Is the prospect currently ready to make a purchase?
Why is practical lead qualification crucial? Statistics show that only 20% of leads convert into actual sales.
“This means that for every new customer you get, there are four who were not persuaded to use your products or services,” according to Business News Daily. “That’s a lot of time and money lost, but smart lead qualification can minimize this concern.”
Lead Qualification Checklist
Begin your lead qualification process by focusing on the cornerstone of B2B sales - establishing a strong prospect relationship. Then proceed systematically through the qualification steps.
Use a Discovery Call to Determine Alignment
After acquiring a lead through email, LinkedIn, or phone contact and securing a discovery meeting, resist the urge to pitch immediately. Instead, use the discovery call to gather crucial information about their situation:
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What specific challenges do they need to address?
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How long have these challenges persisted?
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What previous solutions have they attempted?
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What financial impact is this problem causing?
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How soon do they need to implement a solution?
Make Sure the Right People Are Involved
Companies have various roles, and similarly, the buying process involves different stakeholders. Not every contact has decision-making or influence capability. During lead qualification, it's crucial to connect with appropriate stakeholders.
When engaging with a prospect, incorporate these key lead qualification questions into your conversations:
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What is your company's process for making purchasing decisions?
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What role do you play in the decision-making process?
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Who holds final authority on purchase approvals?
As you develop rapport with your contact, explore their influence in the lead qualification process. If they aren't the primary decision-maker, request an introduction to those who are.
Remember to engage with both influencers prospects who lack budget control but impact final decisions and gatekeepers who work directly with decision-makers. These stakeholders can become valuable supporters of your solution.
Work on Timing and Buyer/Vendor Alignment
Once you've confirmed your solution matches their needs and you're connecting with the right stakeholders, assess their purchase timeline and verify mutual priorities align.
Right Timing
Timing is critical. Your lead may be interested in your solution but might not be ready to make a purchase. If your sales team is devoting time and energy to a prospect who isn’t likely to buy soon, you’re losing precious time that could be spent on better-qualified leads.
Buyer/Vendor Alignment
Which factors does your prospect prioritize when choosing a vendor? How well does your solution align with their priorities? For example, if your buyer places a premium on great customer support and easy integrations while your solution focuses on price and scalability, your priorities may not align.
Score Leads to Qualify Warm Prospects
Create a set of events and metrics to prioritize warm leads. Once you’ve made some sales, you can use sales data from your CRM system to uncover the factors that greatly impact your conversion rates.
List all of the actions — email replies, content downloads, shares of contact information, appointment bookings and discovery calls, for example — and score each action based on how much it boosts the likelihood of a sale.
In addition, consider the prospect’s:
- Number of clients — The more clients the buyer has, the more value the account may have. Decide how many clients a prospect should have before designating them as a high-value lead.
- Primary contact’s motivation — This is a subjective qualification. Nonetheless, it’s still important. Gauge how energized your contact is and how willing they are to move quickly. If they’re inclined to act quickly, you might stand a better chance of closing a deal.
- Business age and budget size — Generally, better-established companies with bigger budgets are more likely to result in sales. These leads should earn a higher lead qualification score.
Improve Sales with Effective Lead Qualification
Ready to build a powerful lead qualification process to help your startup grow? Let’s talk!