What Is An SQL? Your Guide To Sales-Qualified Leads

You just finished a sale (woohoo!) and are faced with a decision: do you turn your attention to the next name on your list and work your way down, or do you target your next highest-value Sales Qualified Lead, or SQL?

You can’t answer that question without understanding what an SQL is. That's why we’re here today – in the alphabet soup that is tech sales, these terms can get confusing, even to folks who’ve been doing this for a while!

So let’s take a closer look at this VIT – or Very Important Term – and get to know what SQLs are and why they matter so much.

What is a SQL?

SQLs are leads that are fully vetted by the sales team through a qualification process. They’re the leads who are ready for a sales pitch and most likely to respond with a purchase.

To be considered an SQL, the prospect must demonstrate several key attributes, such as:

• The budget to purchase your product or service: If they only have $5,000 to spend, there’s no sense in pursuing them as a customer for a $10,000 product.
• The authority to make purchasing: Make sure you’re pitching to the person who has the power to say yes” and sign on the dotted line.
• A need for your product or service: They have a problem you’re uniquely suited to help them solve.
• The timeline for making a purchasing decision: They’re eager to get started, and are more likely to pull the trigger on a sale.

Additionally, they should fit the characteristics for an ideal customer. And if they’re a Marketing Qualified Lead, or MQL, they’ll already be familiar with your brand. This means they had some interaction with your company, such as receiving emails or visiting your website on multiple occasions.

All of these factors will help determine if a lead is ready to be converted into a paying customer.

MQL vs SQL: What’s the Difference?

If you’ve heard the term SQL before, you’ve also likely heard the term MQL along with it.

Basically, an MQL is a lead that has been identified by your marketing department. This is because they show potential to eventually become a customer. Their interest level may not be high yet. However, they’ve demonstrated enough interest to warrant further nurturing from the sales team.

For example, someone who downloads an E-book from your website would be considered an MQL. Completing an online form with contact information would also put them into this category.

Leads are typically flagged by marketing as an MQL before they’re passed onto the sales team.

Once an MQL is contacted by someone on your sales team and deemed to be a good fit for your product or service (generally with a discovery call), they’re considered an SQL.

So back to our original question…

Now that you know what SQLs are and what role they play in making a sale… are you most likely to get a sale if you go down a list of customers and aim for the quantity of calls? Or would you rather target your highest-value, most likely-to-buy prospects who have made it through the sales qualification process? We think it’s the latter.

If you’re working in tech sales, it’s important to understand what an SQL is and how it’s different than an MQL. It may feel a bit like a tongue-twister, but both kinds of leads have an essential role.

Want to know more? Ready to practice turning MQLs into SQLs? Want to explore what Career Success could look like for you in tech sales? We’ve got plenty of resources like Courses and Workshops just for you!

If you want to start moving forward on your career journey: download our Career Success Catalog!