A product-qualified lead (PQL) is favoured amongst businesses as these clients are more likely to become customers compared to other leads. However overall, is PQL better than a sales-qualified lead (SQL) and what should your business focus on? In this article, we will look at what PQLs are, and how they compare to other types of leads.
The definition of a PQL changes depending on what business you ask, however, a common definition is:
A PQL is a lead that has interacted with your business and tried your product or service. These customers are likely to become a customer with a “try-before-you-buy” approach, making them a more valuable lead compared to others like SQL. PQLs are generated through product usage data. By analysing this data, companies can identify potential customers who are more likely to convert to paying customers.
PQLs and SQLs share some similarities, with them both having the potential to become long-term customers. However, there are some differences in the way these customers are defined.
PQL – A PQL is a lead that has had hands-on experience with your product and consistently has used it. For example, they have experienced a free trial and consistently used the features on it, confirming that they are interested in becoming a paying customer
SQL – An SQL is a lead that has interacted with your business and shown interest in converting to a customer, however, they have not had any hands-on experience with your product or service.
To identify a PQL you must track and analyse customer data and consider these factors:
A PQL must have been using a feature of your product or service consistently to demonstrate an interest in becoming a paying or returning customer. The consistency of the feature used can be set by the business. For example, for a social media service, if a user adds 10 friends, this can make them a PQ.
Consider how engaged your lead is with your product or service. How many times are they using it and for how long? To be qualified as a PQL, they must be engaged with your product or service and use it regularly.
Consider if your leads are the decision-makers in the sales process, or if they are the gatekeepers or influencers. To qualify as a PQL, you should aim to have the decision-makers use your product or service.
Are your users providing feedback and asking questions about your product? The more feedback and questions that get asked, the more engaged your leads are likely to be, which is a necessary requirement of a PQL.
Once you have identified potential PQLs, you need to nurture them to increase the likelihood of converting them to paying customers. This can be done through a variety of methods, such as:
Personalized outreach - Reach out to potential PQLs with personalized messaging that highlights the features and benefits they've shown interest in.
Product education - Educate potential PQLs on how to use the product and its benefits through webinars, demos, and tutorials.
Trial extensions - Offer potential PQLs extended trial periods to give them more time to explore the product.
Incentives - Offer incentives, such as discounts or exclusive access to encourage potential PQLs to become paying customers.
Follow-ups – Consistently follow up with your PQLs to keep them engaged and interested in your product or service.
Prioritise PQLs – Due to PQLs being already very engaged and interested in your product, make sure that you prioritise communication with them. If you do not and the sales process slows, you risk losing the customer.
If you are starting from scratch and offering a new trial for a product or service, what should you track to identify a PQL? A good place to start is tracking the usage patterns of your free trial. For example, set a benchmark that a PQL has to log in to your product or service 10 times, and track this metric. From here, you should analyse what is making your customer log in multiple times to get an understanding of how valuable their experience is, and how likely it is that they will become paying or returning customers.
A PQL will present a great chance for your sales representatives to upsell. With a PQL having hands-on experience with your product or service and getting value out of it, they will be more likely to consider upgraded packages with even more benefits for them. For example, if their free trail ends with software and they found it valuable, there is an opportunity to offer an upgraded package for your customer with new software features.
TEB is a sales automation CRM software that will give you unparalleled data visibility, streamlined lead management and improved team collaboration. Transform your conversion rate with TEBs unique benefits:
Easily measure your PQL success – TEB will give you streamlined tracking of your conversion rates, revenue generated and number of PQLs, keeping you aware of your processes.
Provide personalized communication to PQLs – With TEBs filters, funnels, and customer storyboards, you will get a great understanding of who your customers are and be able to provide a consistent personalised service to your clients.
Streamline team collaboration – Seamlessly assign tasks, leave notes on clients and access the same PQL data to increase your team’s collaboration and keep everyone on the same page.
Make simple follow-ups – Avoid missing your follow-ups by scheduling automated reminders, helping you keep your customers engaged with your product or service at all times.
Quickly book a demo and see for yourself how TEB will transform your conversion rate performance.
