MQL vs. SQL: When and How to Transition Leads from Marketing to Sales

MQL refers to Marketing Qualified Lead, and SQL is Sales Qualified Lead.

Updated: December 6, 2024

MQL vs. SQL: When and How to Transition Leads from Marketing to Sales

There are many factors, people, and metrics to consider when it comes to sale, and businesses need to understand and address their leads efficiently with limited resources. However, it can be hard to decide who to target and how with the huge data available. Therefore, marketing qualified leads (MQLs), and sales qualified leads (SQLs) are taken in to consideration. Differentiating these two is crucial to business growth.

What are MQL and SQL?


The different types of people or leads who have shown an interest in your product or service is called as MQL and SQL. MQL refers to Marketing Qualified Lead, and SQL is Sales Qualified Lead. A potential customer who has expressed interest in your product and can nurture into a future sale is called a MQL. But they are not ready to buy right now. An SQL make a purchase by speaking to the sales team.

What is an MQL?


Marketing Qualified Leads or MQLs, are leads who have expressed interest in a brand or product based on marketing campaigns and brought in through marketing efforts. They are more likely to make a purchase than the average shopper.

MQLs can be identified by marketing teams by revising and comparing inbound leads to predefined criteria. People are identified as MQLs to sales teams when factors like interest, engagement, and demographic qualify them as viable customers, who pursue them further.

What is an SQL?


Sales Qualified Leads or SQLs, are leads that have already been assessed and researched by the marketing and sales teams of a business. These prospective customers are considered ready to engage with sales representatives directly as they have shown a genuine interest in buying whatever a brand has to offer. Although, every SQL will not guarantee a sale, but SQLs are the highest-quality lead and much more engaged in what a company sells. These are easier deals to close.

Difference between MQL and SQL:


There is a clear distinction between Marketing Qualified Leads (MQLs) and Sales Qualified Leads (SQLs). An MQL is a prospect identified by the marketing team as having potential value for the company. These leads typically engage with the company through actions like filling out a web form or downloading a white paper, showing initial interest in the company's products or services. However, their engagement is limited to this point.

In contrast, an SQL demonstrates a higher level of interest and is more likely to convert into a paying customer. These leads actively engage with the company through direct interactions such as phone calls or meetings, signaling their readiness to explore purchasing opportunities. SQLs are considered the most valuable and actionable leads in the sales pipeline.


Examples of MQLs and SQLs:


Example 1:

A furniture store is sending out emails, running ads, and promoting special deals through their social media channels to increase sales. It is been running a marketing campaign to attract new leads. The person who clicks on one of the ads of the store and visits their website would be considered an MQL. They may have shown some interest in what the store sells but are not committed to buy anything. The same person would then be considered an SQL if they had fill out a form on the website requesting more information about a specific product. This person is interested in buying and is more likely to make a purchase from the store.

Example 2:

Suppose, a real estate company is running a targeted ad campaign on Facebook for new leads. The customer will look around and clicks on a few different listings after been attracted by one of the ads and clicks through to the website of the company. The marketing team of the real estate company considers this person an MQL based on their interactions. The customer will become an SQL when he/she fills out a form requesting more information about one of the listings. The real estate company will then comes to know they are interested in buying a property.

Example 3:
A clothing retailer launches a marketing campaign promoting a new line of fall jackets to boost sales. By utilizing both online and offline channels, they generate increased website traffic. While not all visitors will convert into customers, some show clear interest. Data from the website reveals users who viewed the new jackets, added them to their carts, or initiated the checkout process. These individuals, expressing interest in the product, are classified as Marketing Qualified Leads (MQLs). To convert them into Sales Qualified Leads (SQLs), the retailer can send targeted marketing materials, such as special offers or personalized recommendations.

Example 4:
A software company runs a blog series highlighting the benefits of its product to attract potential leads. When the sales team contacts these leads, they discover that many are already familiar with the product and eager to learn more. This demonstrates a heightened level of interest, qualifying them as Sales Qualified Leads (SQLs). The sales team can now focus on guiding these leads toward finalizing a purchase.


Why is Knowing the Difference Important?


To know the difference between an MQL and SQL is essential for the following reasons:

Strategized Efforts:
Distinguishing between Marketing Qualified Leads (MQLs) and Sales Qualified Leads (SQLs) allows businesses to focus their efforts on the right prospects at the right time. Sales teams benefit by avoiding efforts to sell to uninterested prospects, while marketing teams can direct their resources toward nurturing leads that aren’t yet ready to buy.

By understanding the difference between MQLs and SQLs, businesses can optimize their sales and marketing strategies, ensuring their efforts align with the ultimate goal of generating revenue. This targeted approach ensures efficiency and maximizes the potential for success.

Better ROI:
Differentiating MQLs from SQLs significantly improves the return on investment (ROI) for both sales and marketing teams. By prioritizing MQLs that are more likely to transition into SQLs, marketing teams can drive more conversions and revenue, achieving a higher ROI.

Similarly, sales teams can focus their attention on SQLs—leads already prepared to make a purchase—leading to a higher deal-closing rate and increased revenue. This targeted approach benefits both teams, ensuring optimal use of resources and better overall results.

Increased Efficiency:
Understanding the distinction between MQLs and SQLs enhances the efficiency of sales and marketing efforts. By identifying leads most likely to convert into customers, businesses can streamline their processes, saving time and money.

This focused approach not only accelerates the conversion process but also creates a more efficient and cost-effective strategy, helping both teams work smarter and achieve better outcomes.


The MQL and SQL pipeline:


Typically, the process of moving a lead from MQL to SQL involves the below steps:

  • A lead will be added to the database after he/she comes in through marketing efforts such as a webform.
  • Lead scoring criteria will be applied to the lead if they meet the qualifications set by sales and marketing team. These leads are determined as an MQL by the system.
  • The MQL will be forwarded to the sales team, who will then reach out and attempt to convince them further.
  • The leads are considered an SQL if they continues to express interest and meets specific criteria such as budget,  need, authority, and timeline.
  • The SQL will be moved into the sales pipeline and nurtured until they turned into a paying customer.

How to convert a lead from MQL to SQL:


Even though, SQLs are the best lead, they are not so easy to find. You have to first convert them from MQLs in many cases. Things that you can do to increase the likelihood of this conversion include:

Nurture Your Leads:
Lead nurturing is a critical step in transitioning leads from Marketing Qualified Leads (MQLs) to Sales Qualified Leads (SQLs). This involves consistently providing targeted content and updates about your company to keep the lead engaged. One effective method is using email drip campaigns—a series of automated emails sent over time designed to gradually guide the lead toward conversion.

While drip campaigns can be impactful, they work best with high-quality leads. Focus your nurturing efforts on those who are most likely to convert to maximize effectiveness.

Create Targeted Content:
Producing targeted content is a powerful way to move leads from MQL to SQL. Content such as blog posts, e-books, webinars, and guides can engage leads, provided it is relevant to their interests and delivers value.

If you're unsure about what type of content to create, review the buyer's journey. Understanding the stages of the journey will help you identify the most appropriate content for each phase and ensure it aligns with the lead's needs.

Use Lead Scoring:
Lead scoring is a method of ranking leads based on their likelihood to become customers. It allows you to focus your efforts on those with the highest potential to convert from MQL to SQL.

Begin by assigning points to various actions that indicate interest or readiness to purchase, such as website visits, content downloads, or form submissions. Once leads are scored, rank them from highest to lowest. This prioritization helps identify the leads most likely to convert so you can concentrate your efforts effectively.

Send Leads to a Landing Page:
Targeted landing pages are an excellent way to transition leads from MQL to SQL. These pages are specifically designed to engage leads interested in your offerings.

Ensure your landing page includes a compelling offer, such as a free trial or e-book, along with a form to capture contact information. This allows you to follow up with the lead and continue guiding them through the sales process.