A Sales Qualified Opportunity (SQO) is a lead that has been evaluated and deemed ready for a sales conversation.
Unlike a regular lead, an SQO has been vetted (typically by the marketing or sales team) and determined that they have a high chance of becoming a customer.
What makes a lead an SQO?
For a lead to be considered an SQO, they usually meet criteria like:
- Fit: They match your ideal customer profile (industry, company size, role, etc.).
- Need: They have a clear pain point that your product/service can solve.
- Budget/authority: They have the budget and decision-making power to move forward with your proposition.
- Engagement: They’ve interacted with your content, requested a demo, or otherwise expressed buying intent.
Why SQOs matter
All leads matter, but SQOs hold a special place, here’s why:
- Saves time: Focuses sales efforts on leads most likely to convert.
- Improves close rates: More relevant conversations = higher win rates.
- Aligns sales & marketing: Ensures only qualified leads move forward.
Not all leads turn into SQOs, but identifying the right ones helps sales teams work more efficiently and close more deals.