Sales Qualified Lead
Fast track (Summarised definition)
A Sales Qualified Lead (SQL) is a prospective customer who has been researched and vetted by the marketing and sales teams and is deemed ready for the next stage in the sales process. An SQL has displayed intent to buy and meets specific criteria indicating a high probability of closing.
Full lap (Full definition)
A Sales Qualified Lead (SQL) represents a prospective customer that has progressed through the marketing funnel and has been vetted by the sales team as ready for direct sales engagement. Unlike a Marketing Qualified Lead (MQL), which implies interest based on engagement (like downloading a whitepaper), an SQL has demonstrated specific buying intent and meets the criteria for a viable sales opportunity.
The importance of defining SQLs lies in the alignment between sales and marketing teams (Smarketing). A clear definition prevents the sales team from wasting time on unqualified prospects and provides feedback to marketing on the quality of leads being generated. This handoff point is critical for maintaining sales efficiency and conversion rates.
Qualification frameworks like BANT (Budget, Authority, Need, Timeline) are often used to upgrade a lead to SQL status. For example, a lead becomes an SQL when a sales development rep (SDR) confirms the contact has the budget to purchase and the authority to sign the contract.
In CRM systems, the transition to SQL is usually marked by a lifecycle stage change and often triggers the creation of a "Deal" or "Opportunity." This stage shifts the primary responsibility for the lead from the marketing department to the sales department.
Monitoring the conversion rate from MQL to SQL, and SQL to Customer, provides vital data on funnel health. A low MQL-to-SQL conversion rate suggests marketing is targeting the wrong audience, while a low SQL-to-Customer rate might indicate sales performance issues or pricing misalignment.