The Ultimate Guide to Sales Qualification in 2024

One of the most essential parts of the sales process is also the one that causes the most hue and cry between sales and marketing teams. 

Sales qualification. 

“Marketing is sending us crap leads.”

“Sales aren't doing their jobs properly.”

How do we put an end to this forever-ongoing war? 

The answer is simple: Set up a robust qualification process.

If you qualify leads better, your sales reps can close more deals faster. 

But it’s reported that over 22% of salespeople struggle to qualify well. 

Here’s something more surprising: PhoneWagon reported it takes roughly 100 dials to make one sale. That’s a sales funnel conversion rate of 1%. That’s a lot of weeding out to do.

So, learning the art of sales qualification is unavoidable if you want to boost your sales game.

In this blog, we'll explore everything you need to know about sales qualification - its importance, how to qualify prospects better by setting up a qualification process, and what kind of tools you’ll need to implement it into your current workflow. Let's dive in!

What is Sales Qualification?

Sales qualification is a process where sales representatives assess and identify the leads or prospects most likely to purchase a product or service. This is an essential step in the sales process because it helps reps allocate their time and resources more effectively by avoiding spending time wasted on leads that have little chance of converting. 

By qualifying leads, salespeople can maintain a lean and mean pipeline and improve their chances of winning deals. 

When Does Sales Qualification Happen?

Sales Qualification primarily occurs during the initial stages of the sales process, when sales reps are: 

• Prospecting: When SDRs find prospects who match their ICP criteria and start cold emailing and cold calling them to check if they’re interested in a product or service.  
• Making discovery calls: After acquiring a list of prospects, salespeople run ‘discovery calls’ to understand their specific problems, requirements, urgency, and if they’re looking at alternative solutions. This is the stage when reps or account executives ask prospects questions to quickly qualify the prospects.

Qualifying prospects early on in the sales process helps salespeople keep a healthy pipeline, and forecast revenue more accurately. 

The 6-Step Sales Qualification Process

Sales qualification is not a rigid, step-by-step process that follows a predetermined sequence. 

Instead, a little bit of qualification keeps happening at every stage after the prospect enters the sales funnel. Below we outline the different steps that you can set up to have a better qualification process. 

Since it’s a multistep process, everyone does it differently. So, while we aim to give you the best starting ground, feel free to pick and choose steps that fit your unique sales needs. 

So, here goes: 

Step 1: Create an Ideal Customer Profile (ICP)

An Ideal Customer Profile (ICP) is a detailed description of the ideal customer for your product or service, which helps target the right prospects, prioritize leads, and improve sales conversion rates. This description is often arrived at upon studying your top 10-20 customers. 

With an ICP, you can tailor your sales messaging to resonate with your ideal customers' needs and pain points, therefore increasing your chances of winning more deals.

To create an Ideal Customer Profile (ICP):

• Analyze your current customer base for common characteristics.
• Identify your best customers based on performance metrics.
• Find similarities among your best customers.
• Develop a rating system to prioritize and implement your ICP.

Step 2: Use a Sales Qualification Framework

Use a framework that fits your current sales strategy. Some opt for the commonly-used BANT or MEDDIC, while others may have a nice mix of different frameworks to call their own. Either way, use this as your criteria to qualify prospects and to base your questions on. 

Here’s how you can use a sales qualification framework:

(i) Define Clear Objectives

Many individuals combine elements from various methodologies, such as BANT and MEDDIC, to create their own set of questions or frameworks.

However, before designing the framework, it is crucial to understand your desired objectives clearly. 

For example, do you want to target prospects ‘aware of the problem’ but need guidance on solving it or those already ready to purchase? 

Focus on finding what your key objectives are before delving into the process of finalizing your sales qualification framework.

(ii) Identify Key Criteria 

The criteria to evaluate leads and qualify them for further sales engagement depends on your chosen sales framework. For example, the main criteria for BANT are budget, authority, need, timeline, and other relevant factors specific to your industry or product. 

You can collaborate with your sales and marketing teams to identify the most critical qualification criteria based on your target audience and Ideal Customer Profile (ICP). 

Train and guide your sales team on the qualification framework, including criteria, lead scoring, and the overall process.

(iii) Implement Technology and Tools

Leverage technology and tools to streamline and automate the sales qualification process to track and manage leads, capture qualification data, and generate reports. 

To start with, CRM is a must as it manages both incoming and outgoing leads, tracks prospects throughout the sales pipeline, and provides crucial information for assessing customer fit.

Some other tools in your tech stack can consist of automation software, scheduling software, research and analytical tools, verification software, etc.

Investing in technology and tools would enable data-driven decision-making and provide valuable insights into the qualification process. 

(iv) Develop a Lead Scoring System

Assign a numerical value to each qualification criterion, such as higher scores to criteria that indicate a strong fit and higher likelihood of conversion. This way, you can prioritize leads and enable your team to focus on the most promising opportunities. 

For instance, if your target market consists of enterprise customers with a team size criterion of 40+, and a prospect has a team size of 50, they would score 5/5 based on your qualification criteria.

(v) Monitor, Measure, and Refine

Analyze KPIs, gather feedback from sales reps, and gain insights from customer interactions. Use this data to enhance your qualification criteria and lead scoring system, ensuring ongoing improvement in the effectiveness of your sales qualification.

Step 3: Categorize Leads

You’re probably capturing leads through the organic or paid channels and/or outbound prospecting. In order to qualify them effectively, you’ll need to categorize them according to how they came in and who qualified them. 

Categorization of leads allows you to focus on high-priority leads, tailor your communication based on specific needs, and analyze the performance of each lead category to optimize your qualification process. 

Leads can be categorized into 4 different types, such as:

(i) Unqualified Leads

These leads require further nurturing before being passed on to the sales team. They haven't yet progressed enough into the sales process.

(ii) Marketing Qualified Leads (MQLs)

These are leads that entered through the inbound marketing efforts who have met specific criteria set by the marketing and sales teams. They have probably signed up for a BOFU ebook or a demo. 

(iii) Sales Qualified Leads (SQLs)

SQLs are leads that have been further qualified by presales experts or SDRs and have been deemed ready to engage with an account executive. These are leads that have entered the sales pipeline. 

(iv) Product Qualified Leads (PQLs)

PQLs have demonstrated a strong interest in the product by starting a freemium subscription or signing up for a free trial.

Step 4: Research Your Prospects

To effectively qualify your prospects, thorough research is essential. Treat it like detective work, gathering valuable insights to assess their fit for your product or service. 

Here's how to do it professionally:

Explore their website

Delve into their ‘About Us’ section, product/service offerings, and customer testimonials. Gain a clear understanding of their core values, business scope, and customer satisfaction.

Assess their online presence

Review their social media profiles on LinkedIn, Twitter, or Instagram. Look for relevant posts, updates, and engagement to identify industry trends and challenges they face.

Stay informed with industry news

Keep up-to-date with industry publications and news websites. Look for articles and press releases related to your prospect or their industry, providing insights into their achievements, challenges, and upcoming projects.

Engage in online communities

Participate in professional forums and discussion groups relevant to their industry. Engaging with these communities helps you understand their pain points and needs authentically.

Leverage mutual connections

If you have shared contacts with the prospect, reach out to gather insights or request an introduction. Utilizing existing relationships can enhance trust and credibility.

Utilize industry reports and research

Seek credible industry reports, market studies, or whitepapers that offer in-depth analysis of your prospect's sector. These resources provide valuable data and statistics to support your sales approach.

By conducting professional research, you demonstrate your commitment to understanding their business and needs. This information empowers you to tailor your sales strategy and showcase how your product or service can meet their specific requirements.

Step 5: Conduct a Discovery Call and Ask the Right Questions

A discovery call allows you to converse with the prospect, gather more information about their needs, pain points, goals, and challenges, and understand the prospect in general. 

You can uncover valuable insights and determine whether the prospect fits your product well by asking the right questions during the call. 

Here are some effective first-call sales qualification questions.

Need/Problem

• What challenges or pain points are you currently experiencing?
• How important is it for you to solve these challenges?
• What solutions have you tried in the past?

Budget

• Do you have a budget allocated for this solution?
• What is your budget range or limit?
• How flexible is your budget?

Authority

• Are you the decision-maker for this purchase?
• Who else is involved in the decision-making process?
• What criteria do you use to evaluate potential solutions?

Timeline

• When do you need to implement a solution?
• Is there a specific deadline or timeframe you're working with?
• What are the consequences of not addressing this issue within the given timeframe?

Fit

• How well does our product align with your specific needs?
• What specific features or functionalities are you looking for?
• Have you used similar products in the past?

Competition

• Are you evaluating any other solutions or providers?
• How do we compare to the alternatives you're considering?
• What factors will influence your decision between different options?

Support/Implementation

• What resources or support will you require during the implementation process?
• Are there any specific integration or customization needs?
• How do you envision the onboarding and training process for your team?

Metrics/ROI

• What metrics or key performance indicators (KPIs) are important to you in measuring the success of this solution?
• How do you calculate the return on investment (ROI) for a purchase like this?
• What outcomes or results are you expecting to achieve?

Remember, these questions are a starting point — tailor them to your specific industry, product, or service. Additionally, active listening and follow-up questions are crucial to gather more detailed information and fully understand your prospect's requirements.

Read More: What Is Sales Discovery?

Step 6: Nurture Leads

Disqualified leads enter a nurturing sequence, where ongoing efforts are made to provide them with relevant information, valuable content, and personalized interactions. The aim is to build a relationship, nurture their interest, and potentially convert them into qualified leads in the future.

Having said that, Kyle Coleman, SVP of Marketing, Clari, has an intriguing perspective on BANT for 2024. 

According to him, relying solely on Budget, Authority, Need, and Timeline information can suffocate the top of your sales funnel as today's buyers expect sellers to provide value, educate them, and earn their trust, rather than expecting them to jump through hoops first. 

So, while budget, authority, and need are essential, eventually, they should not be the main focus at the outset of the sales process.

5 Sales Qualification Frameworks to Choose From

1. BANT

BANT is one of the oldest and most basic sales qualification frameworks salespeople use, and it stands for Budget, Authority, Need, and Timeline. It helps reps assess the potential of a lead or prospect and determine whether they are a good fit for their product or service.

Let's break down each component of the BANT framework:

B = Budget

Budget refers to the prospect's financial capacity to make a purchase. A sales professional must determine if a lead has a budget that fits their product or service's pricing range. 

Here are the questions you may ask:

• How much money do you allocate to address this problem or fulfill this need?
• How much money have you already invested in attempting to solve it?
• Based on data from clients similar to yours, we have calculated that your team is losing $X per [week/month/quarter/year] because of this problem. How does that compare to the amount of money you have set aside in your budget?
• Based on data from clients who are similar to your team, we have calculated that your team has the potential to earn an additional $X per [week/month/quarter/year] if you adopt our solution. How does that compare to the amount of money you have allocated in your budget?

A = Authority

Authority refers to the person within the prospect's organization who has decision-making power over the purchase. Therefore, sales professionals need to know who the decision-makers are and whether they can authorize the purchase. 

Here are the questions you may ask:

• Who is the main team in charge of making this purchase?
• Are there any other departments that can affect the budget of your department?
• Eventually, the decision-making team will need to reach an agreement. When would be the best time for your team to do this? Who do you intend to involve in the process, and when?
• Will there be any other individuals involved in making this decision?

N = Need

The need refers to the problem or challenges that the prospect is trying to solve, which the sales professional's product or service can help with. Therefore, a salesperson must comprehend the prospect's demands and how their service or product might meet those needs. 

Here are the questions you may ask:

• Will anyone else be involved in making this decision?
• When did you first notice that you had this issue?
• What have you already done to solve this problem?
• What are your main focuses right now? How do they match your team's objectives?
• What goals does your team have for the upcoming month/quarter/year?
• What might occur to your team's goals if you don't address this requirement?

T = Timeline

The timeline refers to the time the prospect has to make a purchase. Sales professionals need to know if the prospect has a specific timeframe for purchasing or if the need to make the purchase is urgent. 

Here are the questions you may ask:

• Do you have any important events or deadlines that need a solution?
• If we calculate backward from the date you mentioned, we must finalize our agreement by [date]. Would that date be suitable for you?
• What are the most important things you need to focus on right now? How do these priorities align with your team's goals?

2. MEDDIC

MEDDIC framework can help you gain insights into the customer's needs, align your solution with their criteria, navigate the decision-making process, and build strong relationships to increase your chances of closing the sale. 

Unlike BANT, which is fairly simple, MEDDIC takes the modern approach toward finding decision-makers and understanding the decision-making process. This framework works best with higher deal sizes and expensive or complex products.

Let’s break it down:

M = Metrics

Metrics refer to the customer's quantifiable goals, such as increasing output or saving costs. Show how your offerings provide a good ROI based on these metrics. 

Here are the questions you may ask:

• What are your main objectives or targets?
• How well are you progressing toward your objectives?
• Which metric is the most important for your company?
• In what ways would a new solution affect your goals?

E = Economic Buyers

An economic buyer has the power to make decisions and authorize spending. Talk to them directly, or gather information about their expectations and decision-making process from your contact. 

Here are the questions you may ask:

• Who has the authority to give final approval?
• Do they require a demonstration of the product?
• Does the buyer need to try the product before making a decision?
• Are the buyer's goals and metrics different from yours?
• If the buyer's goals differ, how will they achieve them?

D = Decision Criteria

Every company has some criteria to make decisions, like simplicity, integration, budget, and ROI. Tailor your messaging to align with their criteria and encourage them to define their decision criteria if they haven't already. 

Here are the questions you may ask:

• Do several people have a say in determining what you're looking for?
• What's the most crucial choice you have to make during your process?
• Have you planned how to ensure all your criteria are addressed during our evaluation?

D = Decision Process

As the name suggests, the decision process of a company comprises how a decision is made and the timeline involved. Knowing this process helps you avoid stagnation and understand the steps to closing the sale. 

Here are the questions you may ask:

• Can you explain the process you plan to follow to make a decision?
• Do you have a general idea of when you would like to make a decision?
• Can you describe how we can interact with you during different parts of the decision-making process?

I = Identify Pain

Find out the customer's pain points, such as high costs or slow production. Show how your solution can alleviate their pain and the consequences of not addressing it. 

Here are the questions you may ask:

• How do your personal goals align with the overall goals of the company?
• What are the outcomes if you successfully achieve or surpass your goals?
• What is currently hindering your progress the most?
• What is your biggest source of frustration in your current situation?
• What are your greatest concerns about the upcoming year in your position?
• If you could envision an ideal year, what would need to occur for you to achieve that?

C = Champion

Seek a champion within the organization who is invested in your success and advocates for your solution. This person should have influence and respect to help you navigate the internal dynamics and support your sale. 

Here are the questions you may ask:

• Can you connect us with the important people involved in the buying process?
• Are you ready to support us and defend our solution against negative opinions?
• Have you sold a similar solution successfully in the past?
• Does your boss have confidence in you and your decisions?
• What are the main concerns or objections we need to address?
• How can we effectively present this solution to the senior decision-makers?

3. CHAMP 

The CHAMP qualification framework is a helpful guide for identifying potential customers who are likely to become paying customers. Let's break it down!

C = Challenges

Focus on the challenges your potential customer is facing. You can uncover their pressing problems by asking the right questions and tailoring your pitch accordingly. Understanding their challenges will guide your entire campaign. 

Here are some probing questions:

• Do you need help with your current solution that may make you consider switching to a new one?
• Which parts of your business require assistance or support?
• Which areas within your business are experiencing challenges and require help?

A = Authority

Don't waste time pursuing leads who lack the authority to make purchasing decisions. Identify the organization's key decision-makers and ensure you engage with the right person. 

Knowing who has the power to authorize contracts or purchases is crucial to avoid wasting resources. 

Here are some probing questions:

• Can you help us find the right person to talk to about this?
• What role would you play in making the decisions about this?
• We know you have the authority to make this decision. In addition to you, who else is part of the decision-making process?

M = Money

While discussing money can be sensitive, it's important to address the budget aspect. In CHAMP, money comes after understanding challenges. By taking time to discover the lead's specific challenges, you can frame the money discussion to emphasize the benefits of investing in a solution. 

Here are some probing questions:

• Do you have money set aside specifically for this project?
• When will you have money available for this project?
• Have you already set aside money for this project?
• Have you allocated funds for this project?

P = Prioritization

If your solution falls on the lead's list of priorities, your qualification may be a low priority too. Stay updated on industry news and be aware of any changes that may increase the urgency of their need. Being prepared for sudden needs increases your chances of converting a lead into a customer. 

Here are some probing questions:

• When are you thinking of starting this type of project?
• Do you have a specific timeframe in mind for this project?
• Is there a contract in place? When does the contract expire?
• When do you plan to launch or put this into action?
• Have you explored any other solutions up to this point?

4. ANUM

Following the ANUM framework, you can focus on leads with decision-making authority, understand their needs, assess urgency, and address budget concerns effectively.

A = Authority

Finding the decision-maker is crucial. 

Who has the power to say "yes" to your offer? 

It varies from company to company, so ask the right questions to identify the decision-makers. It could be a CFO, a department head, or a group of individuals involved in the decision-making process. 

You may ask questions like:

• Do we need to involve anyone else from your team in our discussion? 
• How does your organization usually decide to buy products or services similar to ours? 
• Who has the authority to make the final decision to purchase? 
• Can we invite the decision-maker to join our call? 
• Could you provide us with the contact information for the decision maker so we can reach out to them directly?

N = Need

Once you connect with the decision-maker, understand their requirements and expectations. Discover their pain points and tailor your solution to meet their specific needs. This consultative approach increases your chances of closing the deal. 

You may ask questions like:

• What is the main issue that your company, team, or department is currently facing?
• What is causing this main issue, or where does it come from?
• What is the goal that your team or company is striving to achieve?
• Why hasn't this issue been dealt with previously?
• What would be the best solution to solve this problem?

U = Urgency

Assess how urgently your prospect needs a solution to their problem. Evaluate the importance and extremity of their purchase plan. Typically, there is already a sense of urgency since they are actively seeking a solution. 

You may ask questions like:

• How soon do you need the problem to be resolved?
• How much time can you afford to wait for the problem to be solved?
• How high is this solution ranked on your list of priorities?
• How crucial is it to implement this solution?

M = Money

Understanding your prospect's needs and having the right conversation positions you well. Now, it's time to address the budget. When you connect with the right person, offer them the solution they require, and demonstrate that your solution is a game-changer, they may be more flexible with their budget. 

You may ask questions like:

• Do you have money set aside for this solution?
• How much will you pay for a solution that meets your needs?
• Would it be a problem if the cost of this solution exceeds your planned budget?
• Are there any other expenses you are currently using your budget for?

Each framework offers unique insights, so pick the one that aligns with your sales goals and helps you understand and address customer requirements effectively.

5. MEDDPIC

MEDDPIC is a comprehensive sales qualification framework that enables sales teams to evaluate opportunities and effectively increase their chances of success.

It provides a systematic approach to assessing strategic sales engagements by considering various factors. Let's break it down!

M = Metrics

Metrics refer to the quantifiable goals or objectives of the customer's organization. These goals include increasing output, reducing costs, or improving efficiency. To effectively use metrics in the sales process, you need to demonstrate how your offerings can provide a strong return on investment (ROI) based on these metrics. 

You may ask questions like:

• What are your main objectives or targets?
• How well are you progressing toward your objectives?
• Which metric is the most important for your company?
• In what ways would a new solution affect your goals?

E = Economic Buyers

An economic buyer is a person with the authority to make decisions and authorize spending. Engage directly with the economic buyer or gather information from their contact. Understanding the economic buyer's perspective is essential for successful sales. Here are some questions:

You may ask questions like:

• Who has the authority to give final approval?
• Does the buyer require a demonstration of the product?
• Does the buyer need to try the product before making a decision?
• Are the buyer's goals and metrics different from yours?
• If the buyer's goals differ, how will they achieve them?

D = Decision Criteria

Every company has specific criteria to make decisions. For instance, simplicity, integration capabilities, budget constraints, and ROI. 

To effectively engage with the customer, you must tailor your messaging to align with their decision criteria. If the customer has not explicitly defined their decision criteria, you can encourage them to do so. 

You may ask questions like:

• Do several people have a say in determining what you're looking for?
• What's the most crucial choice you have to make during your process?
• Have you planned how to ensure all your criteria are addressed during our evaluation?

D = Decision Process

Understanding the decision-making process within the customer's organization is vital for estimating the sales cycle and closing the sale successfully. This component of MEDDPIC involves gaining insights into how decisions are made, the timeline involved, and the steps required to reach a final decision. 

You may ask questions like:

• Can you explain the process you plan to follow to make a decision?
• Do you have a general idea of when you would like to make a decision?
• Can you describe how we can interact with you during different parts of the decision-making process?

P = Identify Pain

Identifying the customer's pain points is crucial for demonstrating the value of your solution. By understanding their challenges, you can position your offering as a means to alleviate their pain and highlight the consequences of not addressing it. Asking relevant questions can help uncover the customer's pain points. 

You may ask questions like:

• How do your personal goals align with the overall goals of the company?
• What are the outcomes if you successfully achieve or surpass your goals?
• What is currently hindering your progress the most?
• What is your biggest source of frustration in your current situation?
• What are your greatest concerns about the upcoming year in your position?
• If you could envision an ideal year, what would need to occur for you to achieve that?

I = Identify Decision Criteria (Individual Stakeholders)

Besides the decision criteria considered at the organizational level, it's important to identify them according to individual stakeholders involved in the buying process. 

You may ask questions like:

• What factors will influence your decision the most?
• How do you prioritize the different criteria for this purchase?
• Are there any specific features or capabilities that are must-haves for you?

C = Champion

A champion is an influential person within the customer's organization who supports and advocates for your solution. This individual can help you navigate internal dynamics, address objections, and secure buy-in from other stakeholders. It's crucial to identify and develop a strong relationship with a champion. 

You may ask questions like:

• Can you connect us with the important people involved in the buying process?
• Would you support us and defend our solution against negative opinions?
• Have you sold a similar solution successfully in the past?
• Does your boss have confidence in you and your decisions?
• What are the main concerns or objections we need to address?
• How can we effectively present this solution to the senior decision-makers?

Each framework offers unique insights, so pick the one that aligns with your sales goals and helps you understand and address customer requirements effectively.

Sales Qualification Checklist: Setting Up the Process

How do you set up a checklist to ensure everyone on the team follows the same qualification process? 

You make a checklist! 

To set up a robust qualification process that both your sales and marketing teams can follow, you’ll need to: 

• get a few tools 
• set expectations between the marketing and sales teams about the MQLs/SQLs terms 
• do periodic reviews of leads entering the pipeline to exchange feedback between the two functions

We outline this in detail below:

Invest in Tech

Investing in technology can help you automate your sales qualification process and improve your accuracy. There are many sales tools and software to help you with sales qualification, like:

• Lead Scoring Software
• Predictive Analytics Tools
• Data Enrichment Tools
• Customer Relationship Management Software
• Sales Enablement Platforms
• Sales Engagement Platforms
• Virtual Meetings and Demo Tools

Setting Up Training and Support for Sales Teams

To ensure that your sales qualification process is effective, you should provide your sales team with the required training and support to succeed. 

This may involve the following:

• Educating them about the ICP (Ideal Customer Profile)
• Running regular meetings with the marketing & sales teams for lead categorization
• Providing training on the sales qualification criteria
• Training reps on the product, including updating them with the value proposition and product messaging
• Exchanging feedback about the market trends between sales and marketing
• Continuous support, such as:

• regular check-ins
• mentoring
• providing resources or tools 
• assisting in their qualification efforts

Measuring the Effectiveness of Sales Qualification

To measure the effectiveness of your sales qualification process, you should track key metrics such as:

• conversion rates at each funnel stage
• deal size 
• sales cycle length

You should also solicit feedback from your marketing team regarding the current market trends and customers to identify areas for improvement and make adjustments as needed.

Bottomline

Sales qualification is an essential skill for salespeople that helps identify the leads with the highest likelihood of conversion, saving time and resources. 

It is an ongoing process that requires a systematic approach involving lead generation, lead qualification, categorization of leads, and nurturing of disqualified leads. 

While traditional frameworks like BANT (Budget, Authority, Need, and Timeline) remain relevant, sales teams must prioritize building relationships, educating potential customers, and earning their trust rather than solely relying on the framework. 

By considering factors like a fit for criteria, open-ended qualifying questions, pain points, budget, and purchase power, sales teams can identify the most promising opportunities, tailor their approach, and improve their conversion rates and revenue.