When Less Is More
When pursuing potential buyers, quality trumps quantity.
Imagine that you sell software to businesses. Three-quarters of your current subscribers come from companies with more than 200 employees. With limited time and resources, which would you target: a company with 300 employees—or a small startup with a shoestring staff?
As a busy salesperson, you don’t have time to talk to everyone. Instead, it would be best if you channelled your efforts strategically. Who needs your product or service? Who is ready, willing, and able to buy? Investing your time in these individuals or organisations is more likely to bear fruit.
When you qualify sales leads, you assess which customers are most likely to buy. In this lesson, you’ll learn why sales qualification is important and how to qualify sales leads using a common framework.
Watch this video to learn how sales qualification saves time and how to use the BANT framework to qualify sales leads.
What Is Sales Qualification—and How Can It Help?
Sales qualification is the process of evaluating sales leads to determine whether they’re a good fit for your product or service. In simplest terms, qualifying sales leads answers the question: Who is most likely to buy?
Qualifying sales leads boosts your efficiency and effectiveness as a sales professional. Instead of wasting time reaching out to contacts who aren’t a good fit for your solution, you can focus on prospects who align. It’s a win-win situation: You close more deals—and serious sales contacts benefit from more individualised attention and support throughout the buying process.
Imagine This
For context, consider this simple example. Imagine your business sells custom-made outerwear for recreation. A few characteristics you might use to qualify leads include:
- Leads who love the outdoors
- Leads who value quality over price
- Leads looking for custom fit and usability
By contrast, you can imagine that targeting leads who choose their outerwear for high fashion rather than function won’t result in many sales.
Disqualifying leads is an equally essential component of the sales qualification process. Your offering can’t please everyone, and that’s OK. Be upfront with leads who aren’t a good fit, and focus on those your business serves best.
How to Qualify Sales Leads Using the BANT Framework
So, how do you qualify sales leads? What determines whether a prospective buyer is a good fit?
While many sales qualification frameworks exist, BANT is one of the oldest and most established.
Expand the following rows to explore how to qualify leads using BANT.
B—Budget
The “B” in BANT stands for budget. Can the prospective buyer afford your product or service? How much are they willing or able to spend? What’s the potential size or financial value of the deal?
To determine a lead’s budget, you can research a company’s financials. Or, if you are working with an individual, you can ask targeted questions such as:
- “Is there a budget approved for this purchase?”
- “What’s the budget range that you’re trying to stay within?”
- “What are you paying for your current or similar products/services?”
- “How would this product/service impact you or your organisation?”
- “What’s the cost of keeping things the same?”
Tip: Don’t assume that funds are fixed. Budgets can stretch if you can demonstrate how the returns on your solution outweigh the initial investment.
A—Authority
“A” stands for authority. Is your lead a decision-maker? Do they have the authority to make or influence purchasing decisions?
For example, you’re more likely to sell a CRM system to a company’s director of marketing than a junior marketing specialist.
To determine a prospective customer’s level of authority, start online. Job titles are usually listed on company websites or public social media accounts (such as LinkedIn). You can also ask targeted questions such as:
- “What is your decision-making process?”
- “Who else is involved in making this decision, and what are their roles?”
- “How can I help you demonstrate this solution to others in your organisation?”
Tip: Larger companies and more major purchases typically involve more people, or even a decision-making committee.
N—Need
The “N” in BANT represents need. Does your product or service fit the prospective customer’s needs? Do they have a problem that your offering solves?
Questions that uncover a sales contact’s needs might include:
- “What are you looking for in a solution?”
- “What does your current process look like?”
- “What challenges are you currently facing?”
- “What attracted you to our product/service?”
- “What are your key objectives or priorities?”
- “What results do you hope to produce?”
- “Why isn’t your current product/service provider working for you?”
T—Timeline
The last letter in BANT stands for timeline. When is the lead looking to buy? How long will the sale take?
For example, a large company may need to spend their remaining budget before the end of the fiscal year—or they may need to postpone a purchase until the next fiscal year when their budget replenishes. Determine whether a prospective customer’s timeline aligns with your sales cycle—and prioritise the lead accordingly.
Questions that can help you understand a lead’s timeline might include:
- “What’s your time frame for making a decision?”
- “When do you hope to implement a solution?”
- “Do you have a deadline?”
- “Are you locked in any contracts with vendors/service providers? When do they end?”
- “Why are you looking for a solution now?”
- No one “BANT” characteristic is more important than the other. Budget, authority, need, and timing are all equally important when qualifying sales leads.
Take Note
As previously discussed, many other frameworks for qualifying prospective buyers exist. Some industries, companies, and teams may find another framework more useful than BANT. Adapt or tailor this framework to fit your needs and customer base. Or explore other options if the framework doesn’t apply to you.
- Always consult your sales team and leadership for the most up-to-date and relevant guidance.
Customise Your Qualifying Criteria
The BANT framework outlines general qualifying characteristics that apply to most businesses. However, sales teams may also want to develop qualifying characteristics unique to their business and solution. For example, sales leads could also be qualified by:
- Geographic location
- Company size or industry
- Demographic information—age, income, occupation, gender, family or marital status, education, and so on
- Psychographic information—values, interests, beliefs, hobbies, lifestyles, culture, or personality traits
Mine your current customer base for clues. What do your existing customers or best clients have in common? Identify themes to inform your qualifying criteria.
Summary
If sales is about building relationships, then sales qualification is about determining the compatibility of those relationships. Who’s the best match? Which relationships are most likely to flourish and prove mutually beneficial? Qualify sales leads by their budget, authority, need, and timeline to determine which relationships are worth the investment.
- What do I do with unqualified leads? If a contact’s needs seem like they won’t ever align, you can refer them to another company or solution. But if the contact has the potential to become qualified over time, then feed them back into your lead nurturing cycle until the time is right.
Now that you have a better understanding of the sales qualification process, click on “Check your Understanding” to answer the questions about this lesson. Then, explore different ways to assess the needs of your lead, in the next lesson.