Everyone agrees that factoring brokers’ and consultants’ potential for sales success lies in their ability to generate leads. The only way to keep the commission revenue stream flowing is to find viable leads for you to follow up on. For professional consultants, such as factoring brokers and agents, the types of leads you want to focus on are those that have already shown some interest in becoming clients. Typically, these leads are categorized as either Marketing Qualified Leads (MQLs) or Sales Qualified Leads (SQLs).
Grasping the distinction between these two types of leads, Marketing Qualified Leads (MQLs) and Sales Qualified Leads (SQLs), is not just important; it’s empowering for your success. The distinction between these tools can help brokers optimize their conversion rates and streamline the broker’s overall sales efforts, putting them in control of their commission revenue.
So What Are MQLs and SQLs?
- Marketing Qualified Leads (MQLs): Marketing Qualified Leads are potential clients who either have demonstrated an interest in your services offered as a factoring broker or have been added to your CRM (Client Relationship Manager) lists through demographic research. MQL leads are typically generated through various marketing initiatives. These initiatives include content marketing, social media campaigns, and email marketing. For successful factoring brokers, MQL leads start out as nothing more than lists of businesses made up of companies in specific industries that often require accounts receivable factoring. MQL leads begin life as the result of your list building in your CRM and provide you with the raw material for further marketing. MQLs match the broker’s target customer profile regarding industry, size, and other relevant criteria.
- Sales Qualified Leads (SQLs): Sales Qualified Leads are MQLs who have progressed further in the sales funnel and are deemed more likely to become a client. These leads have demonstrated a higher level of interest and engagement, indicating that they are closer to making a decision. SQLs are typically identified and nurtured by you as you engage with them and feel, based on specific criteria, that they are ready to convert to a client.
An MQL may be interested in your product, but an SQL is actively looking to finalize a purchase.
How to Turn MQLs into SQLs
In theory, creative marketing campaigns should convert MQL into SQL. However, a marketing campaign that doesn’t address the lead’s priorities will rarely succeed. Converting MQL to SQL is much more likely to occur through nurturing.
Nurturing MQL leads is more likely to help build your relationships with prospects. It is the way to get them to step down into your sales funnel, get serious, and ultimately decide to become clients.
Unlike more common MQLs, SQLs exhibit a higher degree of engagement. For example, SQLs have requested further information in the form of a free factoring guide or booklet, seeking a consultation with a factors BDO, or expressing a clear intention to apply for financing by requesting a “Terms and Conditions“ letter. SQLs can also be characterized as those business owners commenting regarding large sales or orders pending and are in the advanced stages of the inventory buying process. They see the clear probability of requiring business financing in the near term.
So, while MQLs represent demographically raw material or those that show initial interest, SQLs are the leads that have progressed further and are more likely to become clients. By understanding and effectively managing these two types of leads, factoring brokers can enhance their sales strategies and increase their chances of success in a competitive market.