The unwritten rules of the road. Every sales team is different, but many follow shared industry terminology and best practices. These are the important key industry rules and shared best practices of lead, opportunity, and post-sale operations.
What is Lead?
A lead is a contact at a company that has not quite hit the standards of an opportunity. The goal is that the company would hopefully become a client. These leads are gathered through a variety of methods, including advertising, mailing, trade shows, or other efforts by a marketing team. The contact would commonly be known as BANT (budget, authority, need and timeline).
What is Sales Qualified Lead (SQL)?
A sales qualified lead (SQL) is a lead that passes the specific qualification to be handed off to the sales team. Sales qualified leads are often qualified by the sales development rep (SDR) in that they ask qualified questions, such as company size and urgency to buy. SQLs are often preceded by marketing to qualified leads, which typically have a lesser criteria. SQLs are often a step in most sales funnels.
What is Market Share?
Market share is a metric used to understand how much revenue a company achieved compared to its direct competitors. It is calculated by taking the amount of revenue divided by the total amount for the industry. So if a company has a $100 Million annual recurring revenue (ARR) and the total industry’s is at $10 Billion, then the company has a 1% market share.
What is Unqualified Lead?
An unqualified lead is a lead that does not meet the qualification requirements of a sales organization. An example would be a student researching for more information for a class. Other examples include companies with very small budgets and are located in regions that are unable to be serviced, like overseas or with geographic limitations. A sales development rep (SDR) typically reviews every inbound lead to see if the lead is qualified to meet with one of their account executives. The goal being to not waste any of an account executives time with an unqualified lead that probably won’t lead to a sale.
What is Marketing Qualified Lead (MQL)?
A marketing qualified lead (MQL) is a type of lead that has passed the qualifications of the marketing department. While companies set different qualifications for marketing leads, the qualifications are typically based on engagement. For example, a contact may become a marketing qualified lead if they have clicked on a newsletter or visited a specific page on the website. They have expressed a desired interest in a company’s goods or services. A MQL is often preceded by a sales qualified lead which has a stricter qualification guideline.
What is Monthly Recurring Revenue (MRR)?
Monthly recurring revenue (MRR) is the most important number that tech investors care about. It represents the amount of revenue that repeats on a monthly basis. It can be used to extrapolate the run rate or financial performance, aka the annual recurring revenue, or revenue that comes in every year from a contract.