I. What is a Lead?

A Lead, also known as a potential customer, refers to an individual who has shown interest in a company’s products or services in a specific way. This interest can be demonstrated through various actions, such as submitting contact information via a website registration form, sending a direct message through a Fanpage, or engaging with advertising content. When someone takes these actions, they are identified as a Lead because they proactively reach out to the business rather than passively receiving information from mass advertising channels. As a result, this process is considered demand-driven, originating from genuine customer needs, unlike random outreach methods such as telesales or email spam. Beyond this proactive aspect, Leads are also categorized based on how they become potential customers and their position within the buying journey. Based on these criteria, Leads are typically divided into four main groups throughout the Lead Generation process, helping businesses design appropriate engagement strategies for each stage.

1. Marketing Qualified Lead (MQL)

An MQL is a group of potential customers evaluated by the Marketing team based on their level of engagement with the brand.

For example, a prospect may be considered an MQL if they take actions such as downloading an eBook, registering for a webinar, regularly opening marketing emails, or spending significant time on product pages without immediately bouncing. These behaviors indicate interest in the product or service, but not yet readiness to purchase. Each business defines its own criteria to qualify a prospect as an MQL. Once identified, the list of MQLs is typically passed from Marketing to Sales to continue the conversion process.

2. Sales Qualified Lead (SQL)

An SQL is a potential customer with a high likelihood of converting into an actual buyer. They have passed the qualification criteria set by Marketing or Sales and clearly demonstrate purchasing intent.

For example, a prospect visits a real estate company’s website after seeing an advertisement for premium apartment projects. They fill out a form to receive pricing details and project information, which Marketing initially classifies as an MQL. When a sales representative contacts them, the prospect states that they are looking to purchase a two-bedroom apartment for personal use, with a budget of approximately VND 3 billion and a planned purchase timeline within three months. They inquire about payment schedules, bank financing policies, and request a site visit to view the show unit. After verifying the prospect’s genuine needs and financial capability, Sales qualifies them as a Sales Qualified Lead (SQL) and continues guiding them through consultation, site visits, and deal closure.

3. Product Qualified Lead (PQL)

A PQL is a user who has experienced the product and shows signs of readiness to upgrade to a paid version. This type of Lead is common among businesses offering free trials or freemium models. Through in-product upgrade options, companies can effectively convert PQLs into paying customers.

For example, a user signs up for a free Spotify account to listen to music but faces limitations such as frequent ads, inability to select specific songs (shuffle-only mode), and restricted skips. Over time, these limitations become inconvenient, and the user seeks a better experience. When Spotify sends a notification offering an upgrade to Spotify Premium with a three-month free trial, the user considers the value and decides to subscribe to the paid plan. This is a typical example of a Product Qualified Lead (PQL), where the user has experienced the product and recognizes the added value of upgrading for a superior experience.

4. Service Qualified Lead

This group consists of customers who proactively express their intention to upgrade a service package or purchase additional products. Unlike MQLs—who only show interest through marketing interactions—and PQLs—who have used the product and exhibit upgrade signals—Service Qualified Leads directly request changes to their service plan or additional purchases.

For instance, when a customer contacts customer support to request a subscription upgrade, the service team confirms their needs and transfers them to the Service Qualified Lead category for the Sales team to continue the sales process. Service Qualified Leads typically demonstrate the strongest purchase intent, enabling faster conversion.

II. What s Lead Generation?

Lead Generation is the process of attracting and converting strangers into potential customers by encouraging them to show interest in a company’s products or services. Common Lead Generation tools include blog articles, guides, live events, discount vouchers, and more. To become a Lead, an individual typically goes through multiple stages—from brand awareness and content or offer engagement to taking action by registering or providing contact information. Below are the specific steps in the process of converting strangers into Leads.

1. Lead Generation Process

Step 1: Discovering the business

Visitors find your business through marketing channels such as websites, blogs, or social media platforms.

Step 2: Clicking the CTA (Call to Action)

They engage with a Call to Action (CTA), which may be a button, image, or message prompting them to take a specific action.

Step 3: Visiting the landing page

The CTA directs users to a landing page designed to capture Lead information through a value proposition (e.g., an eBook, a free course, etc.).

Step 4: Filling out the form

Visitors provide personal information in exchange for the offer on the landing page. Once completed, they officially become a Lead.

2. Lead Generation Marketing

Lead Generation Marketing involves using advertising channels to attract strangers to landing pages, convert them into Leads, and further nurture them into paying customers. This process can be summarized as: Advertising Channels → Landing Page → Lead → Paid Customer. In practice, businesses often combine multiple channels based on industry characteristics and target audiences to ensure a seamless and efficient customer acquisition flow.

III. How to evaluate Leads?

1. Evaluating Leads Based on Provided Information

Users are generally willing to share personal information if they receive an attractive offer. However, the level of interest varies depending on individual circumstances.

For example, in a real estate marketing campaign:

User A only registers their email to receive pricing information or view general project images, indicating a preliminary level of interest. User B, in addition to registering for information, also provides a phone number, schedules a consultation, or attends a launch event. This behavior suggests a stronger purchase intent and a more serious consideration stage.

Based on collected data, businesses can segment customer interest levels and deploy remarketing campaigns or personalized consultations. This evaluation method helps filter high-quality Leads, allocate resources more effectively, and focus on prospects with the highest conversion potential.

2. Evaluating Leads with Lead Scoring

Lead Scoring is a quantitative method that assigns scores to Leads based on their behaviors and engagement levels. This model helps businesses determine where a Lead stands in the journey from initial interest to purchase readiness. While each company has its own scoring criteria, alignment between Marketing and Sales is essential to optimize conversions and improve overall performance.

Example in an email marketing campaign:

• Open email: +1 point

• Click a link in the email: +2 points

• Register for consultation or download materials: +3 points

With this scoring system, businesses can easily segment Leads and focus on high-scoring prospects who are closer to making a purchase decision, thereby optimizing resources and increasing conversion rates.

Based on scores, Leads can be categorized as cold, warm, or hot, allowing businesses to tailor engagement strategies accordingly. Targeting the right audience with the right message significantly improves conversion efficiency.

IV. Steps to Build a Lead Scoring Model

1. Identify Key Criteria

The first step is identifying characteristics and behaviors that indicate a Lead’s likelihood of conversion, including:

• Demographic factors: What traits of your ideal customer appear in previously converted Leads?

• Behavioral factors: Which interactions with the brand (e.g., opening emails, visiting the website, using a free trial) correlate with higher conversion rates?

2. Assign Scores to Each Behavior and Attribute

After identifying key behaviors and attributes, assign scores based on their level of influence on conversion.

3. Define Qualification Thresholds

Determine the minimum score a Lead must reach before being passed to the Sales team. This threshold depends on each company’s process and should be adjusted over time to balance Lead quality and quantity.

4. Automate the Process with CRM

Using CRM (Customer Relationship Management) platforms enables automatic, real-time updates of Lead scores based on user interactions.

Case study: Mr. X sees an advertisement for the ABC apartment project on an online newspaper and clicks on it. He then visits the website, views pricing information, and registers to receive documents via a form. The next day, he chats with a consultant to ask about payment methods. Finally, he schedules a visit to the show unit. His behaviors are scored as follows:

Understanding Leads and building an effective Lead Generation process enables businesses to optimize conversions and drive revenue growth. By applying Lead Scoring models and automation tools, companies can focus on the highest-quality prospects and enhance the performance of both Marketing and Sales teams.

Currently, SmartAds is deploying Native Ads solutions across premium online news platforms, connecting businesses with up to 50 million potential readers through a network of premium publishers. With 40,000 opportunities to reach business audiences, SmartAds not only helps increase brand awareness but also delivers performance-driven outcomes—boosting trust by up to 27% and attracting higher-quality Leads.