How to define Marketing Qualified Leads for B2B SaaS companies

How to define an MQL (for B2B SaaS companies)

Mike Northfield
Dec 22, 2019 7:44:57 PM

What’s an MQL? This is one of the most important questions you need to answer as you ramp up your marketing efforts. Your answer doesn’t need to stay the same forever – in fact, it should change at some point – but not getting clear upfront can cause a lot of confusion, missed leads, and investment in the wrong efforts.

The Kalungi definition of an MQL

An MQL is a lead that the marketing team has qualified as having demonstrated intent/interest in your product (based on a set of mutually agreed-upon criteria) and is ready for handoff to the sales team. Let’s break it down...

A Marketing Qualified Lead is a lead...

An MQL should be a leader first and foremost, which means it needs to fit your Ideal Customer Profile (ICP). If a lead originates from inbound efforts (contact form, demo request, resource download, ROI calculator submission) the ICP fit can be a little looser. In the case of your outbound efforts (cold email or LinkedIn outreach), good ICP fit is a prerequisite for turning a lead into an MQL. If the lead isn't a good fit, is it really worth spending sales team resources to nurture them down the funnel?

Remember that your ICP may lie on a spectrum. For example, if a lead does not fit your ICP because the company’s revenue range is too high or too low, you may still make the decision to pursue it. If a lead has positive signals but uses an ERP your product doesn’t integrate with, they may not be worth spending time nurturing. This type of lead can (and should) get disqualified by marketing.

...that the marketing team has qualified as having demonstrated intent and interest in your product (based on a set of mutually agreed-upon criteria)...

Before you build your marketing dashboard, your marketing and sales teams need to align on what it means for a lead to have demonstrated enough intent to be handed off. This will change based on the maturity of your sales function. For example, do you have SDRs and BDRs to help nurture lower intent leads through the funnel? Or does your team mainly consist of Account Executives who only want to engage with extremely high-intent “hand-raisers”? Get clear on what criteria make a lead worth handing off to sales – these will differ from company to company.

Below are three examples of leads who have expressed intent at varying levels.

  1. A lead who subscribes to your blog and downloads your white paper on “Best practices for Accounts Payable professionals” has shown some interest but might not be ready for a conversation with sales. This may be an industry professional looking for helpful resources who should probably stay in a marketing nurture stream for more development and lead scoring.
  2. A lead who downloads one of your case studies has shown a little more interest and indicated that they might be in “search mode,” exploring software options for their company. Depending on your sales resources, you might decide that this demonstrates enough intent to be marked as an MQL.
  3. A lead who submits a request for a custom ROI calculation has demonstrated high intent. They’re likely searching for software – and ways to make a case to their team that your solution is the right one. In most cases, I’d argue this is an MQL and should get elevated to the sales team.

...and is ready for handoff to the sales team.

This portion of the definition tells us which team takes ownership of further developing the lead down the funnel. If sales accept responsibility for an MQL, they should mark the contact as a SAL (Sales Accepted Lead).

You need to get clear on what qualifies a lead as being ready for handoff to sales. These decisions should not be made in isolation – meet and talk through the specific criteria you’ll use to move leads along at each stage. It’s really important for marketing to prioritize fast handoff, and sales to prioritize fast follow-up. A good goal to aim for is 5-minute follow up for hot inbound MQLs.

Just because a lead has been accepted by sales does not mean that all marketing communications should stop. You should, however, be careful to avoid overlap marketing and sales messages.

When should you hand MQLs off to sales?

Here’s are some basic questions to ask before disqualifying a lead at the MQL stage or handing it off to your sales team for follow-up:

  • Does the lead fit your ICP?
  • Are the contact details correct/real/verified?
  • Have they expressed interest that aligns with what sales have agreed to follow up on?
  • Is sales-ready to follow up fast?

You May Also Like

These Stories on Strategy & Planning

Subscribe by Email

No Comments Yet

Let us know what you think