Are you looking for the difference between MQL and SQL? Not sure how to calculate the MQL to SQL conversion rate? Are you wondering how to boost and increase your MQL to SQL conversion rate? Worry not!
In this article, you will learn about what MQL and SQL are, the differences between them, how to calculate the MQL to SQL conversion rate, and ways to increase conversion rates.
What Is an MQL?
A Marketing Qualified Lead (MQL) refers to leads who have expressed interest in your business, products, or services based on your marketing efforts. MQL also refers to leads who are more likely to become your client compared to other qualified leads, towards the end of the process.
What Is a SQL?
A Sales Qualified Lead (SQL) refers to leads who have expressed interest in your business and have the intent to purchase your product or service. SQL prospective clients are the ones who have progressed past the engagement stage, have thoroughly analyzed your business on both sales and marketing aspects, and have prepared themselves to progress through the various stages of the sales process.
Difference Between MQL and SQL
Let’s take a look at the difference between MQL and SQL.
|Marketing Qualified Lead (MQL)
|Sales Qualified Lead (SQL)
|Interested in your product or service?
|Has the intention to purchase your product or service.
|Situated at the top of the funnel.
|Progressed past the engagement stage.
|Required to push leads for a direct sales offer.
|Not yet ready to make a purchase.
|Ready to make a purchase?
|Downloads top-of-the-funnel content.
|Downloads bottom of the funnel content.
How Do You Calculate the MQL to SQL Conversion Rate?
Let’s now discuss how to calculate the MQL to SQL conversion rate. The conversion rate calculation is very simple when you follow the instructions.
- Begin the calculation by identifying the number of MQLs and SQLs generated for a certain period of time.
- Divide the number of SQLs generated by the number of SQLs generated in that period of time.
- Multiply the number by 100 to get the percentage of the ratio.
The formula used to calculate the MQL to SQL conversion rate is as follows:
MQL to SQL conversion rate = No. of Marketing Qualified Leads (MQLs) / No. of Sales Qualified Leads (SQLs) * 100.
For instance, the number of MQLs is 500 and the number of SQLs is 1000.
Conversion rate = (500/1000) * 100 = 50%
On average, this means your business manages to convert about 5 out of 10 leads into sales.
What Is a Good MQL to SQL Rate?
Once you know how to calculate the MQL to SQL conversion rate, you must also be aware of a good MQL to SQL rate. This can help you determine if your conversion rate is good or if you have room for improvement.
Across a wide range of platforms, channels, and industries, a good MQL to SQL conversion rate is considered to be about 13%. Generally, employee referrals, clients, and websites have their conversion rates very high.
8 Ways to Increase MQL to SQL Conversion Rate
Here are some of the ways to increase MQL to SQL conversion rate that you can consider implementing in your business to boost the conversion rate.
- Send customized lead nurturing emails.
- Request and gather testimonials, reviews, and feedback from your existing customers.
- Have personalized follow-up communication with your leads.
- Encourage and motivate your sales team with success stories and testimonials.
- Make sure that the communication and messages between the sales and marketing teams are aligned.
- Perform an annual analysis and evaluate the messaging, as well as what you offer your leads.
- Filter the metrics used for lead scoring.
- Analyze the reasons for low MQL to SQL conversion rates.
Frequently Asked Questions (FAQs)
1. What is an MQL conversion rate?
An MQL conversion rate refers to the percentage of marketing-qualified leads that get converted into sales-qualified leads. This is considered one of the best ways to determine the quality of leads and also acts as an indicator to show how good your marketing team is screening and qualifying leads.
2. How to move from MQL to SQL?
Here are a few tips to help your leads move leads from MQL to SQL, and boost your MQL to SQL conversion rate.
– Familiarize yourself with the terms used in the sales funnel.
– Determine and define the SQL handoff requirements.
– Do not overlook statuses, such as “Sales Accepted Leads.”
– Gain clarity on criterias required for qualifying marketing leads.
– Analyze, evaluate, and repeat the process.
3. Which is better, MQL or SQL?
The main difference between MQL and SQL is the purchase intent. MQL leads are leads who show interest in your service or product, while SQL leads are leads who show interest and also have the intent to purchase your service or product. It is necessary for leads to have the intent to make a purchase, as such leads only qualify and become your clients or buyers at the end of the process.
If you have been looking for a guide about how to calculate the MQL to SQL conversion rate, or for ways to increase your conversion rate, this article should have helped you. Make use of the above-discussed information and formulas to calculate and boost your MQL to SQL conversion rate.
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