Almost every marketing agency will mention the term lead. After all, lead generation is one of the marketing strategies proven to be quite effective for most businesses. As a matter of fact, most people are also aware of what a lead means. That said and done, many people may not be familiar with is the existence of various types of leads. However, that can be termed as unfortunate. After all, understanding these types of leads can help business owners choose the right ones. It also gives you an idea of where your campaign stands as far as the lead generation funnel is concerned. Besides, their lead generation marketing campaigns may not bear any fruits until one selects the right type. We will be discussing the following types of leads in the course of this article;
- Hot Leads
- Cold Leads
- Warm Leads
- Information Qualified Leads (IQLs)
- Marketing Qualified Leads (MQLs)
- Sales-Ready Leads (SRLs)
- Sales Qualified Leads (SQLs)
Let’s look at these types of leads in detail.
1. Hot Leads
In marketing, a hot lead is someone who has already expressed an interest in learning more about your company or business. Some excellent examples of hot leads include calling your business to learn more about your brand, services, or products and filling out demo requests. Due to the interest from the potential customers, this type of lead fall under the category of high-chance leads. If you want to change it into a sale or conversion, it is recommended that you give it immediate attention. Otherwise, the interest might also fade away sooner than you expected.
Besides losing interest, there are high chances you are not the only brand they have reached out to. Can you imagine what will happen if your competitor responds to them before you? Most likely, they will have already settled for another company by the time you reach out. A quick response can save you all this trouble, no doubt.
2. Cold Leads
It is yet another one of the common types of leads in marketing. Unlike their hot counterparts, cold leads are people yet to show interest in your business and what it offers. Under such circumstances, it becomes hard to convert these leads into sales and conversions. Fortunately, mastering the art of communication with cold leads have seen many business owners grow their clientele using such lead.
If someone didn’t show any interest in your brand, how do they end up on the prospects list? In most cases, they are gathered through research and lead generation software. As much as they are hard to convert, they are easy to find and worth a shot, no doubt. Remember to put in a lot of effort and hard work, not forgetting consistency if you want your cold leads to become sales.
3. Warm Leads
The name says it all. Wall leads are in between the other two types of leads mentioned above. On one side, the hot leads meet all the criteria. On the other hand, cold leads don’t meet the criteria. So, it goes without saying that the warm leads don’t meet all criteria, but it meets some of them. Therefore, as it may be hard to change them into sales or conversions due to the unmet criteria, the met ones make it easier than converting cold leads.
Often, you won’t be talking to your warm lead for the first time. The first attempt to convert the lead may have changed due to the circumstances back then. However, if they change in favour of your business, that’s a warm lead right there. For instance, the lead was jobless at the time hence couldn’t afford to buy your product or service. Once they get a job, it increases the chances of the lead becoming a sale. The lead already knows about your brand; hence, there is no need to worry much compared to a completely cold lead.
4. Information Qualified Leads (IQLs)
This type of lead matches the characteristics of your target audience. They share their information with you to inform them about your company. For instance, the potential customer wants you to explain the problem that your product or service will solve. These leads often download information such as reports and e-books. As they do so, they share their information, making them qualified leads to a great extent.
Yes, they are qualified since they meet all the criteria of your potential customers. However, they may not become sales due to the inability to buy or lack of buying intent. That’s where you come in and nurture the lead until it qualifies for these as well.
5. Marketing Qualified Leads (MQLs)
One can say that an IQL can turn into an MQL with the right nurturing. As a matter of fact, the two are quite similar, but the interest in your brand is more in an MQL than an IQL. The two types of leads are about learning more. However, an IQL may do it once, whereas the MQL does it repeatedly. The intense interest in what you offer makes them easy to convert, no doubt. So, start convincing them that your solution is worth a shot. Do so through a conversation or email using presentations and demos.
6. Sales-Ready Leads (SRLs)
When it comes to the sales-ready leads, they are ready to buy but may need more time before the actual purchase. The intent to buy makes them eligible for handing over to the salesperson. Whereas various businesses use different criteria to determine whether the lead is sales-ready, one approach often stands out. That’s the BANT strategy that looks into the lead’s budget, its authority to make the buying decision, its need to solve a problem, and how soon it needs the solution. Nurturing these leads includes sharing demos and follow-up calls with potential customers until they are fully ready.
7. Sales Qualified Leads (SQLs)
If given an opportunity, this type of lead won’t hesitate to meet the sales team. Their interest in what your company offers is evident too. In addition to that, they are also ready to buy. The only problem could be that they are yet to settle on the brand to buy from at the time. You have to convince them that you are the best option. Do so as soon as possible lest one of your competitors beat you to it.
Conclusion: Types of Leads in Marketing
At the end of the day, what matters isn’t the type of lead but whether it qualifies for a sale or not. However, understanding these types of leads helps you ensure that the campaign is successful. Some are easier to convert than others, but none is impossible to change into a sale. Remember that a marketing agency like LeadChimp can help you determine the best way forward if stuck.
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