MQL to SQL Conversion Rate
MQL to SQL conversion rate measures how many marketing-qualified leads are accepted by sales as sales-qualified leads.
Formula
Understanding Lead Stages
MQL (Marketing Qualified Lead): Lead that meets marketing criteria based on engagement and fit. Examples: downloaded 3+ content pieces, visited pricing page, opened 5+ emails, matches ICP firmographics.
SQL (Sales Qualified Lead): MQL vetted by sales and confirmed as a legitimate opportunity. Meets BANT criteria (Budget, Authority, Need, Timeline) or similar qualification framework.
Why This Metric Matters
- Lead Quality Indicator: Low conversion means marketing is passing poor leads
- Alignment Measure: Shows if sales and marketing agree on definitions
- Efficiency Signal: Reveals wasted effort on unqualified leads
- Process Improvement: Identifies where to optimize qualification
Benchmark Targets
| Conversion Rate | Assessment | Action |
|---|---|---|
| 50%+ | Excellent | Maintain quality, scale volume |
| 40-50% | Good | Optimize scoring model |
| 30-40% | Fair | Improve lead quality or definitions |
| Below 30% | Poor | Fix alignment or targeting immediately |
Common Rejection Reasons
- Not in ICP: Wrong company size, industry, or geography
- No Budget: Cannot afford solution
- No Authority: Contact not a decision-maker
- No Need: No pain point or problem to solve
- No Timeline: Not buying in near term (6+ months)
- Already Solved: Using competitor or built internally
Improving Your Rate
1. Tighten MQL Criteria
Add more qualification signals before MQL status: behavioral (demo request, pricing page visit), firmographic (company size, industry), engagement (email opens, content downloads), intent data (research topics, competitive searches).
2. Create SLA with Sales
Document exactly what makes an MQL. Include: minimum engagement score, required firmographic fit, disqualifying factors, expected response time. Review quarterly and adjust based on SQL feedback.
3. Implement Lead Scoring
Points-based system combining fit and behavior. Example: 20 points for ICP company size, 15 points for pricing page visit, 10 points per content download, 5 points per email open. MQL threshold = 50 points. Adjust weights based on SQL analysis.
4. Add Qualification Step
Insert SDR qualification call before MQL to SQL handoff. Quick 5-minute discovery to confirm BANT criteria before flagging as SQL. Reduces sales time wasted on bad leads.