Welcome back!!! If you have read my previous post, by now, you should have clear ideas about what a qualified sales lead is and the different tools available for sales lead qualification.
In this second part, I will describe sales lead qualification (using BANT as a framework), and the sales rep’s activities to qualify or disqualify the leads.
Qualifying questions
For proper sales leads qualification, you need to have a well-developed list of qualifying questions.
These questions should help to obtain useful information to move the lead to the next stage of the sales funnel.
I’d like to clarify that I’m not a fan of scoring systems where the sales rep has to rate, for example, from 0 to 5 the answer obtained. In my opinion, it is often too complicated and not required. However, just the idea behind a scoring system or simplified one could help discriminate the hottest leads from those who should just be nurtured.
Furthermore, I’m aware that asking questions is not always simple, and applying the Sales Lead Qualification framework without first creating a communication channel will not provide you with the information required.
Likewise, starting a sales conversation, maybe on the phone, with a question about the available budget can be a delicate exercise.
That said, the following questions are only draft ideas and can be adapted according to prospects, products, and the specific segment of the medical device business.
Budget questions
- Today you have no solution for your problem, how much does it cost you?
- Can I ask you if there is any allocated budget for this project/product/service?
- If there might be a demand for this product/service, have you previously allocated a specific budget for it?
- Haven’t you considered such a project/product before and fixed budget frames? I am asking this to prepare the best proposal.
- I have calculated that our solution could bring you savings/revenues per year, does this come close to your expectations?
- Have you already set up this type of service? For what cost?
Authority questions
- Would you like to involve someone else in our next meeting?
- Who will use or will be involved with this product or service?
- Who else is involved in this decision-making process in your organization?
- Who is usually conducting the buying process in your organization?
Need questions
- As far as I understand, your current solution does not suit your goals?
- Have you already determined other challenges that need to be addressed?
- Have you determined your requirements?
- Tell me about this problem; how long have you been experiencing it?
- What are your current plans to address the problem?
- What are your current priorities?
- Do you think my solution could help your organization solve this problem?
Timeline questions
- If there is interest after the meeting, how does the purchase authorization process in your organization go?
- Usually, how long does the buying process take in your organization?
- What is your goal for the next 6 months?
- What do you think is the timeframe in your organization for making such purchases?
Bear in mind that if the lead doesn’t want to share a lot of information, you can honestly say that you need this information to understand their problems. And make an offer that fits their needs, interests, and budget.
With this understanding, they’ll be able to open up freely because they can tell that you’re more concerned about their well-being.
Moving qualified leads through the funnel
By using the technique that best suits your company, the sales rep can determine when to move the sales lead further down the sales funnel.
The sales lead is qualified if:
- The budget and the price of the product/service are aligned
- The stakeholders and their roles are identified and mapped
- There is a clear need for the product/service
- The timeframe for the purchase is at least roughly defined
- The customer profile is similar to the profile of already closed deals
When the lead is qualified, the sales rep should start nurturing the lead further by continuing the engagement.
For example, setting up calls, organizing meetings with all the stakeholders, doing product demonstrations, creating links with current customers, and creating more opportunities to discuss the solutions with the prospect.
Doing these can help to move the qualified leads toward conversion.
Other factors to be considered
In qualifying sales leads, there are other important elements to be taken in consideration.
Competition: It is extremely rare that the lead is not considering any of the products/services of the competitors. It is mandatory to know exactly which product/service and the level of engagement.
Customer Profile: The lead characteristics match your ideal customer profile, or it is completely different.
Goals: The priorities of the lead should be very clear.
Plans: The sales rep should identify the plans of the lead to achieve their goals and evaluate how the product/service will help the lead.
Disqualifying Leads
Nurturing and trying to close every deal generally results in dead ends and requires too much energy.
Keeping every lead would also waste precious time and resources you could have invested on high-quality leads and prospects who are more likely to buy.
Here are some key red flags to look out for:
Lack of authority: A typical example is a lead without the level of authority to make the deal or without the level of influence on the decision-makers.
Lack of needs and product alignment: if your product does not solve all the needs of the end-user, it is unlikely that the lead will mature into a prospect.
Lack of consistency: some stakeholders may be interested in your product/service while others seem to have an opposite position. If there are evident contradictions among the stakeholders, they are probably not able to make a final decision.
Organizing Leads
Organizing and categorizing each qualified lead enables sales reps to decide on who focuses on the sales effort and prioritize the follow-up activities.
It can be done by creating a file and recording basic information such as name, contact numbers, email address, date of first contact, other useful details, and the BANT criteria.
Overall, how the qualified lead meets the BANT criteria can be classified and followed up via:
Hot Lead: Hot leads meet all the BANT criteria. For example, a budget is allocated, final approval is involved, the product meets all the requirements, and a clear need and timeline is clearly defined. These are the leads closest to the buying stage; therefore, the focus should be substantial.
Warm Lead: Warm leads usually miss 1 or 2 criteria. Frequently, budget allocation is quite fair. No budget is available for the year, or the time frame is not defined. However, these are the leads that have expressed interest already.
Sales reps should nurture them so that when the stakeholders are ready, they will move towards the company searching for solutions.
Cold Lead: Cold leads could miss 2-3 criteria or have a disqualifier in BANT. For instance, the need is weak, requirements are still vague, one or more stakeholder is skeptical, and budget and timeline are not defined.
They can become disqualified or, with lead nurturing, may be able to turn into a warm lead.
Conclusions
“It’s not about having the right opportunities. It’s about handling the opportunities right.”
-Mark Hunter
Selling is hard, and it takes a lot of energy and time.
That is why sales and marketing leaders must enable sales reps by facilitating the sales process, providing applicable sales tools, and developing effective methodologies to manage the sales pipeline to get results.
The BANT framework and its substitutes are not the panaceas; they enable the sales rep to focus on the most promising leads that can become real sales opportunities.
And these leads have the appropriate authority, need and timeline to purchase the product or services he/she is trying to sell.
What do you think about Sales Lead Qualification? Also, do you agree with my conclusions on the BANT framework? Please let me know in the comments, and don’t forget to subscribe.