Understanding PQL metrics: Key insights for growth

MQLs and SQLs not working? Try PQLs instead

Marketing qualified leads (MQLs) and sales qualified leads (SQLs) were created by marketing and sales teams as a way of determining the quality of leads. This was based on whether the lead met various criteria, including but not limited to behavioural profile, demographic statistics that could indicate their interest or fit for a product that would in turn suggest their likelihood of becoming a customer.

The problem with MQLs and SQLs is that the criteria used to define them is often rather arbitrary or circumstantial. Just because somebody downloaded a whitepaper or owns a business doesn’t necessarily mean that they are more likely to become a customer than other leads.

Enter the product qualified lead (PQL).

What is a PQL?

A product qualified lead (PQL) is different from MQLs and SQLs in that it uses in-product behaviour as its criteria to indicate the likelihood of becoming a customer. The advantage of a PQL is that by the time you are trying to make the sale they have already experienced value in your product, making the sale easier.

Unlike an MQL, which may have merely signed up to your weekly newsletter, PQLs will have had experience with your product through a limited-time free trial, which gives them a chance to see whether they like your product before they commit any money.

How to Identify a PQL

The key to identifying the right criteria for a PQL is finding the in-product action(s) that correlate  most often with those who go on to become customers. Taking YouTube as an example, it could be that a user is likely to become a paying subscriber once they reach over 24 hours worth of watching per month.

Of course, there are a hundred ways you can customise what a PQL is to meet the needs of your company, and every company will look different. An important way of finding your perfect criteria is tracing the customer journey of a current customer and analysing what factors were key to contributing to their success.

When prospects use your product or service, they demonstrate buying intent based on product behaviour which can include:

• Product interest
• Number of users
• Features used
• Spending patterns
• Usage patterns
• Velocity - how fast a user or team is adopting your product

To gain a better understanding of your PQL you can supplement it with other data such as demographic information or company information. There may be certain commonalities within this kind of data that indicate that they are more or less valuable leads.

Advantages of PQLs

The main advantage of PQLs is that you can discern which leads are really interested in using your product or service and which are not. With this information, you can better align the marketing and sales process to meet a PQL’s needs and ultimately increase the chances of them becoming a paid customer.

Gartner reported that 80% of your company’s future revenue will come from just 20% of your existing customers, highlighting the importance of focusing efforts on the leads at the end of the tunnel, rather than at the start. By flipping the funnel so that adoption is the initial touch point, your sales and marketing teams will be spending more time with leads who have a genuine interest in using your product or service, and are therefore more likely to become customers.

If you’re looking to accelerate your business’ growth with sales ready leads, book a demo with Dolead today.

Frequently Asked Questions

What are PQL metrics?

PQL metrics, or Product Qualified Leads metrics, are a set of key performance indicators (KPIs) used to measure the quality and engagement level of leads generated by a product or service. These metrics provide insights into how well a product is attracting and nurturing potential customers.

Why are PQL metrics important for growth?

PQL metrics play a crucial role in driving growth for businesses. By analyzing these metrics, digital marketers can gain valuable insights into the effectiveness of their product and marketing strategies. This information can help optimize lead generation efforts, improve customer acquisition, and ultimately drive revenue growth.

What are some common PQL metrics to track?

Some common PQL metrics include activation rate, usage frequency, feature adoption, and customer satisfaction. These metrics provide a comprehensive view of how engaged and satisfied users are with a product or service. By tracking these metrics over time, digital marketers can identify areas for improvement and make data-driven decisions to drive growth.

How can I optimize PQL metrics for my business?

To optimize PQL metrics, it is important to have a deep understanding of your target audience and their needs. By aligning your product features and marketing strategies with customer expectations, you can increase activation rates and drive higher engagement. Additionally, regularly monitoring and analyzing PQL metrics will help you identify areas for improvement and implement effective strategies to optimize growth.

What tools can I use to track PQL metrics?

There are various tools available to track PQL metrics, such as analytics platforms, customer relationship management (CRM) systems, and product analytics software. These tools provide valuable insights into user behavior, feature adoption, and customer satisfaction. By leveraging these tools, digital marketers can effectively track and analyze PQL metrics to drive growth for their business.