• Lead qualification
• The beginning and the end
• Sell the solution
• 1. Solution selling
• 2. SPIN selling method
• 3. Inbound selling
• 4. Target account selling
• 5. Miller Heiman method
• Choice of sales methodology
• Two alternative approaches to lead qualification
• Solution selling: 7 stages to securing the deal
• Example of the framework
• NOTE method to qualify leads effectively
• Maintenance is key!

Lead qualification

Successful conversion of a lead is often determined by the ability to identify and focus on the most promising leads. Lead qualification plays a pivotal role in this process, helping sales teams distinguish between potential opportunities and time-wasting endeavours. In this post, we'll explore the importance of lead qualification, when should the process start and the approach to qualifying leads.

According to HubSpot, only 21% of new leads convert into sales. By qualifying leads, you can improve the conversation and save your company money, time, and effort that can be reinvested.

The beginning and the end

Lead qualification is not a one-time event confined to the top of the sales funnel. Instead, it's a dynamic process that should kick off from the very first interaction with a potential prospect. The moment a lead enters your radar, it's crucial to start asking the right questions. The earlier you delve into the prospect's budget, decision-making authority, needs, and timeline, the better equipped you are to tailor your approach.

Unqualified leads can clog the revenue pipeline, consuming valuable resources and time. Common pitfalls include a lack of clear qualification criteria, overlooking warning signs, and failing to adapt to the changing dynamics of the prospect's needs, budget, and timing. To avoid these pitfalls, qualification must continue throughout the entire sales funnel.

Sell the solution

Before you decide the steps required to qualify leads it is important to identify a comprehensive methodology. As you would have realised, the point of taking a lead generated within the funnel to the conversation stage requires a solid sales methodology or a plan. There are many sales methodologies that are out there. We have compared five methodologies that we have studied. In the end, we will also mention which one we would recommend.

1. Solution selling

Rather than selling specific products, salespeople leverage solution selling to leads, with the benefits a custom solution can provide for the prospect. For example, a sales rep for a printing and design company could create a custom package of design services, signage, and business cards to fit the buyer’s needs. This approach acknowledges buyers today are more informed and allows reps to meet prospects where they are. After all, it’s likely prospects have already researched your products and have a solid understanding of the offerings that suit them best. With solution selling, sales reps identify prospect pain points and offer a customised mix of products to meet their needs. Solution selling requires the company to have above-average commercial capabilities

2. SPIN selling method

SPIN is an acronym for the four elements a sales rep's questions for prospects should focus on situation, problem, implication, and need-payoff. These subjects often reveal buyer pain points and challenges and help sellers build rapport with their buyers.

• Situation questions aim to understand a prospect’s current situation — although reps should still research a call or meeting.
• Problem questions get to the heart of the prospect’s issue.
• Implication questions probe the prospect to think about the consequences of not solving the problem.
• Need-payoff questions prompt the prospect to consider how the situation would change if their problem were solved.

Here’s an example of the SPIN sell in the context of an executive recruitment services firm.

• "How does your current hiring process work?"
• "Do you find that you have trouble filling your senior leadership positions with quality candidates?"
• "If a leadership position goes unfilled, how does that affect the organisation?"
• "If you were able to get a list of quality executive candidates, how would that help the HR department and the entire organisation?"

Rather than explicitly telling prospects about a product or service’s value or potential impact, the goal of SPIN selling is to guide prospects to these realisations on their own.

3. Inbound selling

Sales and marketing goals have become increasingly intertwined. Potential buyers interact with content the marketing team creates and often research products on their own before contacting the sales team. This methodology allows sales professionals to meet prospects where they are — whether that’s on Twitter or their company’s product pricing page. Inbound sales analyse page views, conversions, and social media interactions to personalise the buying process. By following an inbound approach, sales reps can focus on selling using a flywheel model instead of a traditional sales funnel.

As prospects make their way through the awareness, consideration, and decision stages of the buyer’s journey, inbound sales reps take four actions:

• Identify: Inbound sales reps prioritise active buyers rather than passive ones. Active buyers have visited the company site, started a live chat, filled out a form, or reached out on Twitter.
• Connect: Inbound reps connect by reaching out to prospects with a personalised message through their blog, social media accounts, or in-person events. This personalisation is based on the buyer’s role, interests, industry, or connections you have in common.
• Explore: In the exploratory phase, reps focus on rapport building and recap previous prospect conversations. At this stage, reps dive deeper into the prospect’s challenges and goals, introduce products or services that might fit these goals, and create plans that accommodate buyer timelines and budgets.
• Advise: Finally, reps create and deliver a personalised sales presentation covering what they’ve learned about the prospect’s needs and the value and assistance your product or service can provide.

4. Target account selling

Target account selling is the idea that picking the right prospects to engage with is the most crucial aspect of a sales process — that means paying careful attention to and conducting more extensive research during lead qualification, mapping out organisations, and creating buyer personas.

This particular methodology can lean heavily on sales automation — resources that can help your sales organisation identify traits that characterise prospects who will be most receptive to your solution and broader sales process.

The critical point with this methodology is to prioritise quality over quantity significantly when it comes to pursuing leads and targeting accounts. It involves putting in extra legwork at the beginning of a sales process, hoping that it will lend itself to higher close rates and more efficient sales efforts down the line.

5. Miller Heiman method

The method focuses on building and managing relationships with the different parties involved, as well as closing the sale. It consists of 3 steps:

Step 1 - Categorising: The first is categorising. In this phase, you step back and look at every individual involved in the client’s buying cycle, and put them into groups based on how much influence, and what kind of influence they hold in the decision-making process. You have to be aware of the fact that in large deals, the number of people you’ll have to analyse could be quite high, so be prepared.

Step 2 - Determining: The next step is the determining stage. Here, you look at the categorised list you put together in step one and use your prior knowledge, as well as information you’ve gained from conversations, to determine which people are most likely to support your cause, and which are most likely to push back against it. For example, an IT Director may be highly supportive of integrating new sales software into the business, whereas a CFO may have budgetary concerns.

Step 3 - Influencing: The final part is the influencing stage. This is when you begin to apply the research and analysis you conducted in the categorising and determining phases. Here, keep in mind that you are aiming to influence these key players not by being manipulative, but by building a real, true working relationship with them. The people who you’ve determined as being on your side? Appreciate, support, and maintain that positive relationship with them. Those who are more hesitant about buying in? Don’t neglect them. You have to see things from their perspective. In this way, everyone in the process feels valued and understood.

Choice of sales methodology

In all these methods, the goal is to identify the leads that are most likely to convert into customers. This involves understanding the needs and challenges of the leads and providing solutions that address these needs and challenges. By doing so, salespeople can focus their efforts on the leads that are most likely to result in sales, thereby improving efficiency and effectiveness.

Out of all the methodologies spelt out above, we have found the ‘Solution selling’ method to be the best and brightest for small and medium B2B Software companies. Solution Selling offers a client-focused, personalised approach that aligns well with understanding and addressing the specific needs and challenges of potential clients, potentially leading to more effective sales conversions and long-term relationships. Apart from being widely popular, it could also be much more cost-effective than some of the other methodologies.

Two alternative approaches to lead qualification

Solution selling: 7 stages to securing the deal

The ‘Solution selling’ methodology offers a systematic approach to value creation. Lead qualification is pivotal to the approach.

The 7-stage framework offers a structured pathway from initial engagement to securing a successful deal through the various stages of the sales cycle.

1. PLAN: Identifying opportunities

The journey commences with the identification of an opportunity. This phase involves ticking crucial boxes - identifying potential sponsors, acknowledging the project's feasibility, and recognising the opportunity at hand. It's about laying the groundwork by identifying key stakeholders and initiating the process.

2. CREATE / IDENTIFY: Establishing initial connections

Moving forward requires more than just recognition. The subsequent step involves establishing the first connection - a preliminary meeting to explore the identified opportunity further. Failure to advance to the next step within a month may warrant reevaluation but securing that initial and follow-up meeting is critical for progress.

3. QUALIFY: Confirming feasibility and need

The pivotal qualification stage demands a deeper assessment. Here, the sponsor's admission of pain points aligning with the offered solution, a clear buying vision, and access to decision-making power are essential. This phase solidifies the groundwork for a potential solution while confirming the alignment between the prospect's needs and the offered solution.

4. DEVELOP: Creating solutions and plans

Transitioning into the development stage, the focus shifts to crafting proposals and quotes based on the gathered information. Access to a power sponsor, established pain points, and an agreed-upon evaluation plan further validate the potential for a successful collaboration.

5. PROVE: Securing initial approval

Receiving verbal approval signifies a crucial turning point. It validates the value proposition and moves the process closer to the final stages. It acts as a precursor to the imminent closure, further solidifying the alignment of solutions with the prospect's needs.

6. CLOSE: Negotiating contracts

With the momentum gained from the prior stages, the negotiation process intensifies. This phase involves contract discussions, aligning terms, and reaching an agreement that satisfies both parties' interests.

7. WON: Securing the deal

Ultimately, success is reaching the 'WON' stage. Here, tangible proof of securing the deal emerges through signed documents or purchase orders, marking the official initiation of collaboration.

Example of the framework

Here is an example of how we used the 7-stage framework to track opportunities for one of our portfolio companies. Each stage presents a unique opportunity to foster value creation, culminating in successful deals and long-term partnerships. We believe that by diligently progressing through these stages, businesses can optimise their sales cycle, maximise value delivery, and achieve sustainable growth.

Irrespective of which sales methodology you choose, it's imperative that as a leader, you first believe in the methodology yourself. For the team to prioritise this particular methodology, they have to know you believe in it too and that you're capable of implementing it. A reverse role play works well here, where you, as the sales leader, play the rep and your team plays the customer.

Next, emphasise how this new approach will help both the team and your customers. As a team, you have to believe in the mission. Why would someone who continually achieves their goals stop doing what they're doing if they don't see the greater value? This can be achieved by demonstrating an anticipated increase in leads, meetings, sales, or customer retention. If there isn't meaning behind the approach or a clear path to success, it will not receive the calories it deserves.

And finally, you could ensure that the steps in a new sales methodology are outlined simply and thoroughly. Can it be digested and adopted within a matter of minutes? If we're going to ask a salesperson to take a step back in their day away from immediate revenue-generating activities, then that has to be the goal."

NOTE method to qualify leads effectively

The NOTE method, inspired by the Sandler approach, provides a structured framework for effective lead qualification. It is widely accepted as a go-to framework and in our personal experience, we can vouch for its ease of use/implementation.

Let's delve into each component:

Need

Understanding the prospect's needs is crucial. Use questions like:

• "It looks like you’re attempting to do [company’s need]. Is that correct?"
• "What does your current sales process look like?"

Opportunity

Identify opportunities your service can bring:

• "With the current solution of [company’s need], are you fully satisfied?"
• "How urgent is your need in [company’s need]?"

Team

Determine the key players involved:

• "What is your role in the decision-making process of the company?"
• "Are you one of the team members who has the final say regarding [company’s need]?"

Effect

Understand the expected outcomes of collaboration:

• "What are your expectations out of this cooperation?"
• "What results will be satisfactory for you in one month/quarter/year of our cooperation?"

Maintenance is key!

It is important to keep in mind that the pipeline is only as good as the information in it. Therefore, it is vital to ensure the sales team is accurately capturing and properly maintaining the pipeline data.