Lead qualification refers to the process of finding out which one of your prospects will actually buy your product. It is a part of the sales funnel that usually has many leads but only a small part of it is converted into actual customers. 

Lead qualification is important to guarantee your sales and marketing assets are assigned as productively as could be expected. If you concentrate intensely on all possible clients without first surveying their capability, you will wind up investing energy and money on prospects who might be more averse to making a sale for you, regardless of how well you engage them. Given the run of the marketing costs, businesses have a budget for, there is no place for squandering assets on leads who won’t ever change into customers. Organizations must rather focus their resources on prospects who are ready to buy your product.