A qualified lead is generally defined as someone with the potential to become a customer based on their awareness of a need or reason to make a change or an investment in another solution. Those who willingly provided information or insights into their problems and challenges demonstrate a real interest in investigating potential solutions. Others may not know they have issues and challenges, and it is our job to expose the unknown to create awareness. Both scenarios represent a qualified lead. While salespeople hoping for their next sale might think anyone who fits a specific demographic is “qualified,” the process of determining these types of leads actually goes much deeper. In this article, we discuss best practices when qualifying leads.
To honestly label a sales opportunity as qualified, salespeople must uncover the prospect’s needs and determine that their product or service will satisfy those needs. Often this can be established in a single sales call for simple problems or needs, but the process could take weeks or longer for more complex business problems. No matter the length of the process, it is up to the salesperson to discover two things:
- the prospect has a business problem, challenge, or inefficiency they want to resolve, and
- the prospect has the authority, desire, and resources to act.
In a recent article, we discussed the value of sharing lost sales opportunities among team members to learn from mistakes. Studies have shown that two-thirds of lost sales occur because the salesperson didn’t qualify the prospect in the first place. Therefore, business leaders must prioritize helping their team accurately qualify leads to save time, money, and effort on deals not likely to close.
Tangible Tips for Qualifying Leads
Determine if there is a real problem to be solved: It is a salesperson’s job to uncover the issues the prospect is facing. Start by asking about the frustrations and concerns they face in their position and the roadblocks to efficiently performing their job. This may take several conversations, but when a prospect opens up about these issues, it is a sign they are beginning to trust you. Resist the urge to prematurely offer solutions in the form of your product or service. Listen carefully and ask lots of questions to ensure that their issue is genuinely within your ability to resolve before providing feedback and appearing like a know-it-all who just wants a sale.
Some sample questions to ask to get to the root of the prospect’s need may include:
- What exactly is the problem you face?
- Is the problem an internal challenge, or are external factors creating pressures on your business?
- What additional issues does this problem cause?
- Can you share a recent real-life example of the problem?
- Has your team discussed this issue? What was the outcome?
- Have you previously tried to fix or correct this problem? What went wrong?
- Does leadership understand that this is causing an issue for you?
- What has their response been?
By asking the right questions, you allow the prospect to open up about their problems and concerns, and you will have the information you need to determine if you can truly help them. If you cannot address and solve their issues, you may be wasting their time (and yours) to continue.
Identify your customer: Every sales rep understands that they need to reach the decision-maker once they know their product is a good fit – but simply asking for a name may cause an abrupt end to your meeting. Suppose you are getting reliable and valuable information from the person you are speaking with. In that case, sales pros advise you to continue the conversation by asking who (or which department) in the organization is most affected by the identified problem. In doing so, you identify those who will be most motivated to resolve the issue.
Once you understand those who are most affected, you can begin to gather their thoughts, perspectives, and opinions. This more profound understanding of the situation will enable you to structure a solution that solves the problem in a way that speaks to those most affected on a daily basis and achieves their buy-in.
Some questions you might ask at this stage of qualifying leads include:
- Does this problem impact anyone else in the company?
- How does this problem affect your team’s performance/productivity?
- Has anyone put forth a solution?
- What is the best way to get feedback from each person so I can more accurately address your issue?
At the end of these two steps, salespeople should have a comprehensive knowledge of the top-of-mind issues their prospect is experiencing – including who is affected, the frustrations they face, past attempts at fixing the problem, and who has a vested interest in the solution.
But that is just the beginning of winning the sale – stay tuned to this blog for more information on effectively gauging a prospect’s commitment and availability of budget.
Best Practices When Qualifying a Lead
While every prospect will present a unique scenario, the underlying premise of asking probing questions to qualify a sales opportunity remains the same. Companies that document top performers’ best practices and sales tips can facilitate the transfer of knowledge, especially to new hires. Having helpful information at their fingertips assists new hires in getting up to speed more quickly without waiting for sales meetings or a manager’s availability.
Call KLONE today to learn more about the KLONE Organizer. This powerful tool aggregates and disseminates your company’s most valuable knowledge to those who need it – when they need it in the flow of work.