For factoring brokers and consultants, success comes down to the ability to generate leads: Two crucial terms that play a pivotal role in this process are Marketing Qualified Leads (MQLs) and Sales Qualified Leads (SQLs). Understanding the distinction between these two types of leads is essential for factoring brokers aiming to optimize their conversion rates and streamline their sales efforts.
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 lists through demographic research. While MQL leads are typically generated through various marketing initiatives such as content marketing, social media campaigns, and email marketing, for successful factoring brokers, MQLs leads start out as nothing more than lists of businesses made up of businesses in specific industries that often require accounts receivable factoring. MQL leads begin life as the result of your list building in your CRM and provides you with the raw material for further marketing. MQLs match the broker’s target customer profile in terms of 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 client.
Key Characteristics of SQLs: a. Engagement: SQLs have exhibited a higher degree of engagement, such as requesting further information in the form of a free guide or booklet, seeking a consultation with a factors BDO, or expressing a clear intention to make a purchase and request a “Terms and Conditions” letter. SQLs are also those having large sales pending and in the advanced stages of the buying process and they see the clear need for financing in 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.