Sellers know that a well-​qualified prospect will be the most likely to become a valuable client. But what should sellers look for when qualifying? That’s a question that must be answered in order to focus your time efficiently.

Why should sellers focus on qualified prospects?

Simply put, qualifying prospects prevents wasting time and effort on someone who likely would not pan out as a client.

“Qualifying leads effectively makes sure you’re investing your time in the right prospects,” writes Jack Bowerman.

This, he explains, “improves the overall success rate of the deals you close.” Why? These are just a few of the benefits:

• Faster sales cycles
• A motivated team
• Time and resources saved
• Improved customer relationships
• Higher retention rates

Unfortunately, sellers struggle with this. The Brooks Group’s Spencer Wixom reports that 40% of sales pros say qualifying is the toughest part of the job. And over half say it's harder to reach prospects than five years ago.

3 things to look for when qualifying

Knowing what makes a real sales opportunity can help you focus on qualified prospects.

Wixom points out that specific characteristics are a green light when it comes to analyzing a prospect.

First, Wixom points out that to be worth pursuing, the buyer should have awareness of a need. Specifically, a need which can be filled by your offering.

“They might not know exactly what the solution is—or that your company exists—but a qualified prospect will know they have a problem.”

To uncover this need, and make them aware if they aren’t yet, ask questions during discovery.

“The simplest way to get the sales qualification answers you need is to ask the right questions,” explains SalesFuel’s Rachel Cagle.

“In order to get the most out of your qualifying questions, you need to make the questions open-ended.”

Your questions should also be based on research you’ve done on the buyer and aimed at producing thoughtful responses. Examples include:

• “What are the most difficult challenges your team faces today?”
• “What is the magnitude of your problem/​challenges?”
• “Have you tried to solve it before?”
• “What happens if it can't be properly solved?”

For even more qualifying questions you can ask, check out these other suggestions.

Can they drive purchases?

Another important characteristic of a qualified prospect is the ability to buy. This means that the buyer is in a position to make a purchasing decision and has the means to do so.

“There’s nothing more frustrating than spending time and effort with a contact who is not in the position to make a purchasing decision,” Wixom notes.

They may spend hours nurturing a relationship, only to find the contact can’t make decisions or lacks purchasing power. Without clear qualification early on, sellers risk chasing a dead-end.

And it’s also frustrating to learn later in the process that there isn’t any budget for your solution.

So, sellers must, early in the discovery, determine if the prospect has decision-​making authority and an available budget. This is where questions make all the difference. Consider asking the following, including examples from SalesPipe:

• “Other than yourself, who else needs to be involved in the buying decision?”
• “Would it be possible for you to share what the buying process looks like for you?”
• “Are there any internal constraints, like budget or resources, that could impact your decision-​making process?”

A sense of urgency

A third important characteristic to look for is a sense of urgency. A qualified prospect has a timeline; while it may not be clearly defined, it is ready to be moved forward. If the buyer isn’t ready to discuss the future or even sure of timing, it may be time to move on.

But keep in mind that immediate urgency isn’t always necessary, as Wixom explains.

He suggests sellers, in this scenario, schedule a meeting in the future to circle back. Or continue to nurture until they’re further down the sales funnel and ready to commit to your service or product.

Determining if a prospect possesses these three characteristics is important to the qualification process. If these are absent, you may end up spending resources on someone who isn’t able to buy. So uncover them early to avoid chasing the wrong business.

And for more guidance on optimizing your qualification process, take a look at these tips.

Photo by Tara Winstead