Leads are the lifeblood of any successful business. Even so, many organizations struggle to generate leads, with 80% of marketers saying that they consider their lead generation efforts to be only slightly or somewhat effective. Creating an effective lead generation strategy boils down to knowing the types of leads you are generating and the tactics you employ to convert them.  

Need to brush up on lead types? We’ve got you covered. Here are the 7 types of leads and how you can turn them into loyal, paying customers. 

Cold Leads 

A cold lead is someone who fits your ideal customer profile (ICP) but has yet to show interest in your services or products. You generate these leads through manual research or using a lead generation software. Since they are largely disinterested in what you’re offering at this stage, they require the most effort in converting them into paying clients. However, cold leads are the most common type of leads in sales, so you need to get good at communicating with them. 

Be more persistent. It’s highly likely that cold leads wouldn’t answer your calls or emails on the first try, but don’t let that deter you. Cold leads just need a more nurturing method. Follow up on your emails and clearly mention your purpose for setting up meetings during calls. 

Target pain points. Drum up interest in your business by positioning it as a solution to their current challenges. Do thorough research to gain an understanding of their organization so you can present ways in which your product or service can benefit them. 

Warm Leads 

Moving down the funnel, a warm lead is someone who has some familiarity with your brand. They may have become aware of your services because they watched a video, read your blog, follow you on social media, or got a recommendation from a friend. They might not have proactively expressed interest or have gotten in contact with your team, but they have an existing connection with your business, which makes them far easier to convert compared to cold leads. 

Start a conversation. This can be something casual or a more formal meeting that would allow you to get to know about their business’ needs and whether your product or service can meet their requirements. Either way, make the first move. 

Reassess if needed. Warm leads may also be people you have reached out to before but did not move forward. It could be because of bad timing or a budget issue. Check in again if their circumstances have changed and double down on how your company can help theirs. 

Hot Leads 

A hot lead is an individual that has shown explicit interest in your company and products. Perhaps they’ve already signed up for a demo or have gotten in touch with someone on your sales team. This type of lead requires immediate action because they may go to a competitor due to their immediate need of a solution to their pain points. Hot leads are rather easy to convert, but you shouldn’t take them for granted. Strike while the iron is hot.  

Do some research. Aside from assessing the lead’s needs and how your product can meet those needs, you also need to know how your competitor’s product measures up to those requirements. You need to make a case that your solution is the best fit for the lead.  

Sweeten the deal. The next step is to have your sales team reach out directly and set up a call to discuss all of this. Have them explain and demonstrate the advantages of using your product. And just in case they need an extra push, you may want to offer a free trial of your product. 

Information Qualified Leads (IQL) 

An information qualified lead or IQL is someone who has just begun researching a solution to their problems. Typically, they would readily supply you with information about their company in exchange for free but valuable material, but not show outward interest in your business just yet. IQLs are individuals who filled out a form on your website, downloaded content like eBooks, webinars, and infographics, or signed up to receive your newsletters.  

Give them a nudge. At this stage, you’ve essentially got IQLs hooked—they just need a little bit more convincing. Keep informative content coming (such as blog posts, emails, or guides) and try to nudge them into the right direction by including calls to action (CTAs). 

Offer some help. As mentioned, IQLs are already doing research on how to solve their problems. The best approach here is to lend a hand. Have your team reach out, look into what their hurdles are, and discuss how your product can help lighten the load.  

Marketing Qualified Leads (MQL) 

Marketing qualified leads or MQLs are just a step ahead of an IQL in that they are actively looking for a service provider to solve their current problems. These are individuals who are familiar with your offering and are responding to your marketing messages. They may get to this leg of the journey by clicking on a social media ad or a CTA button on a blog post. Generally, MQLs are aware of your brand but are not quite ready to invest just yet. 

Segment your MQLs. MQLs are just on the verge of making a purchase decision. This means that you cannot simply lump them in with previously mentioned types of leads. They need to be in a separate segment, receiving more customized marketing messages. 

Customize messages. Your marketing messages generally need to be more engaging and focused on sharing in-depth information about your business or products. Think along the terms of new product/service launches and guides on using your products with emphasis on their benefits.  

Sales Ready Leads (SRL)  

Also known as sales accepted leads, sales ready leads or SRLs are bottom-of-funnel leads deemed ready to be handed over to your sales team for further processing. Most organizations use the BANT strategy to determine the level of readiness with these criteria: 1) Budget – is the prospect willing to spend? 2) Authority – is the prospect a decision-maker? 3) Need – does the prospect have a pain that needs to be solved, and 4) Timing – does the prospect need a solution immediately? 

Always follow up. Just because SRLs are willing to buy what you’re selling; doesn’t mean they will do so immediately. These leads may still need to be convinced through follow up emails or calls, and maybe even a free demo of your solution.  

Keep content coming. Your goal now is to keep your brand top-of-mind so SRLs don’t go to any of your competitors. Keep them in the loop and continue sending them customized marketing messages that will up their readiness.  

Sales Qualified Leads (SQL) 

A sales qualified lead is someone who is finally ready to have a serious discussion with your sales team. They match your ICP, have expressed interest in your services, and are ready to make a purchase decision. The catch is they may still be doing a comparison of your solution against your competitors. These are the leads your sales team needs to focus on and quickly close before they lose interest and sign a contract with another service provider. 

Start with a pitch. Since these leads are very hot, your sales team needs to come in hot too. Approach SQLs with a sales pitch they cannot refuse. This could come in the form of a free time-limited trial if they sign up now or even a hefty discount.  

Set up onboarding. Having to learn the ins and outs of a new product or service can become a source of friction for any organization. Go the extra mile by properly setting up an onboarding call or meeting with your new convert to help them get started. 

Not all leads are created equal. Learning which techniques work best for each type of lead will make your team more adept at conversion. Most importantly, you will know where to concentrate your efforts to keep your pipeline running more efficiently.