Definition
For a business, a sales-qualified lead (SQL) is a prospective customer who has moved up the sales pipeline and shows higher potential of conversion to active customer. Such leads/customers are first marketing-qualified leads who eventually progress to being sales-accepted leads.
Example
Why it matters
Companies need to qualify sales leads to save on time and resources. Companies that are able to better understand their leads will know how to offer a better customer experience such that the lead converts into prospects.Companies must track all prospective customers across all stages of the sales pipeline. This can help in calculating the sales conversion rate and checking if the potential customers show signs of leaving the sales funnel before turning into buyers. This metric allows companies to easily and proactively adapt to customer journeys such that the leads do not drop off and the right strategies are deployed to re-engage such customers.