In marketing and sales, MQLs (Marketing Qualified Leads) and SQLs (Sales Qualified Leads) are crucial concepts, but they can sometimes be confusing. Understanding the distinction helps ensure that marketing and sales efforts are aligned, improving handovers, boosting conversions, and ultimately driving revenue.
Let’s explore what MQLs and SQLs are, how they fit into the customer journey, and why it’s important to get the handover right.
What is an MQL?
MQL: Marketing Qualified Lead
An MQL is a lead who has shown interest in your product or service by engaging with your marketing efforts. However, while these leads are engaged, they are not yet ready to buy – they need further nurturing before being passed to sales.
Typical Signs of an MQL:
- Subscribing to your newsletter
- Downloading a whitepaper or eBook
- Registering for a webinar
- Filling in a contact form or accessing a lead magnet
Example:
Imagine a software company offering a free eBook titled “10 Ways to Improve Your Data Reporting.” Someone who downloads it may be interested in better reporting but isn’t ready to purchase software yet. At this stage, the marketing team identifies them as an MQL and continues to engage them through follow-up emails or targeted content.
What is an SQL?
SQL: Sales Qualified Lead
A Sales Qualified Lead (SQL) is someone who has moved beyond general interest and is actively considering a purchase. These leads demonstrate a higher intent to buy, and the sales team can now reach out with tailored conversations.
Typical Signs of an SQL:
- Requesting a product demo or free trial
- Asking for pricing information
- Filling in a form to arrange a call with sales
- Positively engaging with follow-ups from marketing
Example:
Returning to the software company example: if the same lead, after reading the eBook, now requests a demo or pricing information, they are signalling a stronger buying intent. At this point, the marketing team hands the lead over to sales, and they become an SQL.
Key Differences Between MQLs and SQLs
| Criteria | MQL | SQL |
|---|---|---|
| Level of Engagement | Engaged but still exploring | Actively considering a purchase |
| Ownership | Managed by the marketing team | Managed by the sales team |
| Stage in the Funnel | Top or middle of the funnel | Bottom of the funnel |
| Next Step | Further nurturing with marketing content | Personalised sales outreach |
Why the MQL to SQL Handover is Critical
The transition from MQL to SQL is crucial. If marketing hands over leads to sales too early, the sales team may waste time on people who are not ready to buy. If the handover happens too late, potential deals might be lost to competitors.
Many companies use lead scoring to manage this process. Lead scoring assigns points based on a lead’s behaviours (such as attending a webinar or opening emails) and demographic fit (such as job title or industry). Once a lead reaches a pre-defined score, they are passed to sales as an SQL.
Aligning Marketing and Sales Teams on MQLs and SQLs
To ensure smooth collaboration, marketing and sales teams need to agree on:
- What defines an MQL and SQL for the business
- The lead scoring system used to qualify leads
- A clear handover process to transfer leads between teams
For example, if marketing considers a lead who opens three emails to be an MQL, but sales only wants to engage leads who request a demo, there will be misalignment. Regular meetings between teams, clear processes and automated systems help create clarity and ensure both departments are working towards the same goals.
