Connor BrookeOne of the most widely-used methods for qualifying B2B sales leads is known by the acronym BANT, which stands for Budget – Authority – Need – Timeline. The basic idea is that you will have a strong sales opportunity if you identify a lead who:
- Has a recognized need that your company can address
- Has the authority to make the buying decision
- Has the budget to purchase the kind of product or service you provide
- Has an identified timeline for purchasing the kind of product or service you provide
At first glance, BANT appears to offer an entirely reasonable way to qualify sales leads. It’s hard to argue that a lead who meets these four requirements would not be highly qualified.
In reality, however, BANT is no longer an effective way to qualify sales leads for two reasons.
- Some of the criteria are all but impossible for an individual “lead” to meet. So, a strict use of the BANT criteria will cause you to ignore many valuable leads.
- By the time a lead is fully “BANT-qualified,” it’s probably too late. Your odds of concluding a sale on your terms are greatly diminished because a competitor has probably established a favored position.
To understand why BANT no longer works well, let’s look at each of the criteria.
Budget
B2B companies no longer budget for many purchases in advance. Surveys by DemandGen Report indicate that only 20% – 30% of purchases are budgeted at the beginning of the year. Between 70% and 80% of survey respondents say they evaluate potential solutions, build a business case for immediate adoption, and then obtain spending approval. Therefore, if you require qualified leads to have established budgets, you will obviously miss out on many sales opportunities. Instead of requiring a specific budget, what you have to do is make a judgment call about whether a prospect has the financial ability to purchase your product or service.
Authority
In the 2012 Sales Performance Optimization survey by CSO Insights, 76% of respondents indicated that 3 or more individuals are involved in making the final buying decision. Purchasing by committee is now the norm. In this environment, most of the leads you encounter won’t have full purchasing authority, but many of these leads will play a major role in the final buying decision. The right criteria for lead qualification is influence or involvement, not authority.
Need
Of the four BANT criteria, need is still obviously essential. In most cases, if there’s no need, there won’t be a sale. Even here, however, the idea of “need” is changing. In the past, the goal was to find a lead who recognized the need and understood it. Now we know that a seller can often have greater influence with a lead who does not fully understand the scope or implications of the need, at least at the beginning of the engagement. This can enable the seller to use marketing content and sales messaging to shape and influence how the lead thinks about the need and possible solutions.
Timeline
The primary problem with using timeline for lead qualification is that by the time a prospect has set a timeline for a significant purchase, the prospect has probably completed most of the buying process. In this sense, timelines have become like budgets. Potential buyers identify needs, evaluate potential solutions, and then get spending approval and set a purchase timeline. In fact, a purchase timeline may not be set until after the supplier has been selected.
For many years, BANT provided a useful framework for qualifying sales leads. Given the new realities of B2B buying, however, BANT no longer works for lead qualification. Today, the BANT criteria develop and evolve as the buying process moves forward. But, you can’t expect them to exist at the beginning of a prospect relationship.
This article was written for Business 2 Community by Connor Brooke.
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As Peter Drucker said,”“There is surely nothing quite so useless as doing with great efficiency what should not be done at all.”
What if “lead qualification” is a process barrier to an efficient single revenue process? Why create a defective “lead” in the first place? Would a sales professional create a “lead” and then in a separate step “qualify” that lead? Or, would they have a single 1to-1 customer-oriented selling process to align with each individual prospect. The marketing industry is KILLING revenue performance. Learn about the Revenue Performance Management (RPM)revolution.
We use a different version of qualification but with around 25 questions being answered in different categories. Obviously budget, timing, need, decision-making are elements…but the key question for me about qualification is: does it help the sales person to ask the next set of questions to advance the sale? If not, why waste your time. If it does, sales people start to love using the tool.
This was an informative article. My question would be that if BANT is out of date, what is the process that should be used?