How To Use the BANT Framework To Qualify SaaS Leads

Step #1. Create an ideal customer profile (ICP)

This is the first and most defining step in the BANT lead qualification process. Start with a clear picture of what your ideal B2B customer looks like. To create your ideal customer profile (ICP), analyze your current client base and best customers. Understand their industry type, company size, annual revenue, and specific challenges they sought to resolve using your offering.

A detailed ICP serves as a blueprint for your marketing and sales professionals to identify similar prospects and establish scalable and repeatable strategies to engage them.

Step #2. Check if the prospect’s budget fits your product pricing

Once you’ve matched a prospect to your ICP, examine their financial readiness for your product. Go beyond a simple budget inquiry to understand their expectations from your software. Ask whether they have set aside funds for the investment. This approach helps differentiate between leads merely exploring options and serious buyers. Additionally, highlight your product’s ROI in your sales pitch to appeal to committed buyers.

In a subscription-based model, budget may be less of a concern, as subscription costs are more manageable, often ranging from as low as $10 for basic plans. However, one of the top drivers of software buyers’ regret is a higher-than-expected total cost of ownership, which includes operating costs in addition to the purchase price. One in three buyers (33%) express this concern, so aligning a prospect’s expected total cost of ownership with your pricing structure is a suitable way to qualify leads. 

Step #3. Check if the prospect has the authority to make a purchase decision

B2B software purchasing often involves multiple stakeholders, each with their own concerns and priorities. These stakeholder roles may range from gatekeepers passing along information to higher-ups with the final say, including IT directors, C-level executives, and department heads.

While it’s important to address the concerns of the entire team, engaging with stakeholders with significant purchasing power increases the likelihood of a successful sale. Understand where your contact fits in the decision-making hierarchy. Research their company structure through their website, social media, or direct questions to identify key players. Then, see how you can access the decision makers — perhaps ask your contact to set up a meeting or reach out to them directly.

Remember, even if your lead doesn’t have the final say, their influence can still be valuable, so don’t overlook their input. Building trust can turn them into your advocates within their organization.

Step #4. Identify the pain points or needs of the prospect

Next, understand what business problems your prospects are facing and how critical these issues are to them. Ask if these challenges are hindering their growth. Is resolving this issue a top priority for them? What happens if they don’t?

Remember, a prospect’s perceived needs may differ from their leadership’s priorities. Uncovering these discrepancies early can prevent potential roadblocks later. Listen attentively to their responses, and align your software’s features as solutions in your sales pitch. 

Step #5. Check the prospect’s timeline for purchase

Now that you know the prospect’s budget, decision-making authority, and needs, find out how quickly they want to make the purchase. Are you looking at months of presentations or a simple one-pitch-and-close type of deal?

Per Gartner Digital Markets’ 2023 Global Software Buying survey, 47% of businesses take six to nine months to finalize a software purchase, and 16% take less than three months.

Inquire directly about the purchase timeline, and based on that, prioritize your leads and tailor your follow-up strategy. Prospects looking to purchase within the next few months would be at the decision stage and, therefore, more receptive to aggressive sales tactics or special promotions. Conversely, those with a longer timeline would still be exploring options, making high-pressure tactics off-putting. 

Step #6. Track BANT metrics to measure results

As you continue to use the BANT qualification criteria to qualify leads, don’t forget to measure its impact on your sales outcomes regularly. Focus on these key metrics: 

• Qualified lead percentage: Percentage of leads that meet the BANT criteria. If it’s low, consider refining your lead generation strategy or improving your initial screening process.
• Average deal size: Average value of each sale. If it’s lower than expected, target prospects with a higher budget or convey the value of your software better.
• Cycle length for qualified leads: Time it takes to convert a qualified lead into a customer. If it’s too long, identify the bottlenecks in your sales process and find ways to address them.
• Conversion rate: Percentage of qualified leads that become customers. If it’s low, work on improving your sales pitch or tailoring your software to better meet the needs of prospects.
• Revenue from qualified leads: Total income generated from qualified leads. If it’s not as high as expected, revisit your pricing strategy or look for upselling and cross-selling opportunities for existing customers.

Remember, tracking these metrics isn’t just about assessing BANT sales performance but also gathering insights to optimize your sales process.

Best practices for implementing BANT

Prepare your team. Ensure everyone understands why you're using BANT and how it benefits the sales process. Train your team to use the BANT framework effectively, including asking the right questions. Additionally, clarify roles on who does what in the BANT process. For example, marketing handles initial lead qualification (need and timeline), and sales takes care of the rest (budget and authority).

Use digital tools. A customer relationship management (CRM) system that aligns with BANT allows you to track and analyze data easily, while scheduling tools help arrange meetings to expedite the sales pipeline and prevent missed appointments or opportunities with qualified leads. Similarly, call recording software lets you capture customer interactions and lead notes useful for sales reps to close deals.

Improve lead quality and conversions with BANT

To sum up, the BANT framework has stood the test of time because it helps with effective lead qualification while fostering more organic discussions and giving meaningful insights for the sales team to follow up and convert deals faster.

If you’re struggling with high disqualification rates, our expert advisors can BANT-qualify leads for you so you can accelerate growth. With Gartner Digital Markets’ Pay-Per-Lead (PPL) service, you can access sales-qualified leads matching your ICP, save sales time, and close more deals efficiently.

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Survey methodology

*Gartner Digital Markets’ 2023 Business Structure Survey was conducted in April 2023 among 244 U.S. respondents to learn more about sales strategy and framework, and challenges faced by sales leaders. Respondents were screened for a business development or sales role in a business with 1,000 employees or fewer.

Source

1. Is the BANT Framework Still Effective in Qualifying Leads?, Capterra

Amita Jain

Amita Jain covers B2B content creation and strategy to help businesses reach their marketing goals. She received her master’s degree from King’s College London, U.K. Exploring the world of art and reading fiction are some of her usual happy distractions outside of work. Connect with Amita on LinkedIn.