You might not think it, but the definition of a sales lead can be rather complex.
To most, it just means ‘potential new business’, but it actually goes far deeper than that.
In the context of sales, a lead refers to a contact made by someone who could, one day, become a customer. Some companies refer to them as ‘prospects’.
However, some businesses will determine a lead as a contact that has already become a prospective customer and who is close to the buying decision.
Whatever your view on the definition of a lead, one thing remains consistent: sales teams have a core responsibility to convert leads into new customers; that’s their bread and butter. This results in something called a conversion rate, which indicates how well the sales team is performing and enables the business to forecast future business.
From unaware to lead
How do people go from being completely unaware of your brand to becoming a lead?
There’s actually three phases most prospects go through: the unaware stage, the awareness stage and then the transition to a lead.
There are, broadly speaking, four common ways leads drop into your sales department:
When someone is unaware of your brand, there’s a couple of ways you can gently nudge them into the awareness stage.
The first is via marketing of any kind - content, social or the more traditional approaches all work brilliantly in terms of raising brand awareness
Cold outreach is another method, although one that is arguably less favourable these days. After all, who wants to spend all day cold calling people who don’t want to talk to you?
Despite this, techniques like email marketing are still popular and represent a brilliant way to make complete strangers aware of the benefits you could provide for them.
What’s a marketing qualified lead?
A marketing qualified lead (MQL) defines someone who is now aware of your brand, and who has identified a need which you could fulfil.
This is pretty much the first stage of becoming a lead.
However, they’re probably not ready to become a customer just yet; they’re simply primed to receive additional marketing material that will edge them closer to becoming sales ready.
What’s a sales accepted lead (SAL)?
Depending on the size of your business, this definition may not be required, but it typically refers to a lead that has reached the point of being ready to buy.
They’re ‘hot’, as you might say, and therefore ready to have the sales teamwork their magic and maximise the potential revenue that can be generated via the sale.
In the modern age, these types of leads aren’t always handled solely by the sales team, either - the effort is often spread across the entire business.
Why do we lose leads?
Not every lead is a good fit for your business, and it’s important to remember that it’s ok to let go of the leads that fall into that bracket.
After all, what’s the point in spending time on a lead that will never actually become a customer?
You’ll probably lose more leads than you win as your business grows, but that’s fine - providing the leads you do convert are of high quality and a decent volume, your business is set for success.