Implementing a simple yet robust lead qualification process saves you significant time and money. When done correctly it siphons out those leads that are not worth pursuing. Focus is placed on leads that are likely to yield revenue. As such it is an integral part of the Systematic Sales Path. Ideally it involves a fast assessment of leads to determine their worth as an opportunity.
Some Examples of Lead Qualification
Back in the day I worked for a large national engineering company. We had a very robust qualification process that consisted of a go/no-go meeting. The process demanded the meeting comprise at least four high-level personnel, plus the bid/project manager. Consequently, a large amount of money had been burned before a decision had been made.
In their defence they were pursuing $100,000+ opportunities. However, on smaller prospects, the profit had evaporated from the project before it had been won. Their go/no-go form, however, was exceptional and I will be using it as a basis for the checklist below.
Donald Miller’s Business Made Simple company has a whole team dedicated to qualifying leads, both digital and phone calls as they come in. Therefore, only qualified leads are passed to their sales team allowing them to focus on customers who have the strongest revenue potential.
Our Simple Lead Qualification Checklist
In our case, we are assuming that the business developer is either alone or part of a small team. A dedicated team of qualifiers is, unfortunately, not part of the picture. Therefore, the qualification process should be fast, intuitive, and easy to use. It should be simple enough to check off mentally if required.
I’ve adapted the go/no-go form from my previous job into a series of quick questions that can act as a simple checklist.
| – Is this a business-as-usual request? – Can the lead afford our offering? – Is the lead outside of our regular deal value? – Does the lead play to the strengths of our offering? – Will we require additional resources to win this lead? – Is this an existing customer? – Is the customer a good fit? – Does the lead come with an added level of risk? |
The answers to these questions should provide clear guidance as to whether you should progress the lead into the pursuit stage. I’ll be looking at the pursuit stage in more detail in an upcoming post.
Checklist Questions
Now we have a simple checklist to work with, let’s look at each question in more detail. Each has an associated question or trigger.
Is this a business-as-usual request?
Is the lead related to our business-as-usual activities? If yes, change the lead to an opportunity and pursue. If no, can we deliver on the opportunity?
Can the lead afford our offering?
If no, disqualify the lead.
Is the lead outside our regular deal value?
A lead with larger than normal revenue may prove difficult to deliver. Proceed only after further discussions with the wider team to make sure delivery is achievable. On the other hand, leads with revenues that are too small may not be commercially viable.
Does the lead play to the strengths of our offering?
If the lead does align with the offering strengths, then change to an opportunity. Otherwise additional assessment will be required to determine alignment with the strategy.
Will we require additional resources to win this lead?
Do we have those resources available? If no, then do not qualify. A half-baked proposal can do significant damage to the company’s reputation. It is better to send nothing at all than to send something substandard.
Is this an existing customer?
Remember the Ansoff Matrix? It’s always better to sell to existing customers who already know your offering and can be more supportive if you are trying something new.
Is the customer a good fit?
This is one of the most important questions. Does the customer fit within the preferred customer profile? Do their values align with your own? If yes, qualify. If no, do not qualify.
Does the opportunity come with an added level of risk?
Consider, for example, any reputational, financial, or safety risks associated with the opportunity. Risks take many forms and need to be carefully considered. If high risk looks likely, initiate a discussion with the leadership team. Importantly, mitigating the high level risks is e for the lead to be qualified.
Your Lead Qualification Checklist
Of course, the qualification checklist will be different for each company. Therefore, you should consider what is important for your particular circumstances and adjust accordingly. It is even possible to incorporate the company values into the qualification checklist. For example, I’ve seen this done really well with a question like: Is the opportunity based within the tobacco, whaling, or nuclear industry? If yes, do not qualify. This is a clear message that this organization does not support projects within those industries.
Are there any non-negotiables that you can incorporate into your own version?
As always I’m keen to hear how you have used lead qualification in your business. What processes have worked well for you and your team. Leave a comment below or drop me a line on LinkedIn.
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