Product metrics and goals
MQL and SQL
Also called Marketing-qualified lead, Sales-qualified lead, MQL, SQL, Lead qualification
Stages a lead passes through in a sales-led business: marketing judges it worth nurturing (MQL), then sales agrees it's worth a conversation (SQL).
How it's worked out
Lead to MQL rate = MQLs ÷ leads × 100. MQL to SQL rate = SQLs ÷ MQLs × 100
Not every lead is ready to talk to sales. Qualification sorts them: a lead becomes marketing-qualified when it fits the target customer and shows interest, and sales-qualified when a salesperson agrees there's a real need, budget and timing.
The conversion between each stage shows where the pipeline leaks, and whether marketing and sales agree on what a good lead is.
In practice
600 leads become 240 MQLs and 96 SQLs: 40% of leads qualify for marketing, and 40% of those for sales.
Common mistake
Marketing and sales defining a qualified lead differently. Write the criteria down together, or the conversion rates mean nothing.