SQL (Sales Qualified Lead)
A prospect that has been vetted by the sales team and deemed ready for direct sales engagement.
Definition
A Sales Qualified Lead (SQL) is a prospective customer who has been researched and vetted by the sales team and is considered ready for the next stage in the sales process.
SQL Qualification Criteria
Budget Authority
Has budget and decision-making power
Need Confirmed
Clear business need or pain point
Timeline Established
Defined timeframe for making decision
Fit Validated
Product/service matches requirements
MQL to SQL Process
- Lead Handoff: Marketing passes MQL to sales team
- Discovery Call: Sales rep conducts qualification call
- BANT Assessment: Budget, Authority, Need, Timeline evaluation
- Fit Analysis: Product-need alignment verification
- SQL Designation: Lead approved for sales process
- Opportunity Creation: Formal sales opportunity opened
Key SQL Metrics
- MQL to SQL Conversion Rate: Percentage of MQLs that become SQLs
- SQL to Opportunity Rate: SQLs that become sales opportunities
- SQL to Customer Rate: Ultimate conversion to paying customers
- SQL Velocity: Time from SQL to closed deal
- SQL Value: Average deal size from SQLs
Real-World Example
B2B SaaS SQL Process:
MQL requests demo, sales rep confirms $50K+ budget, enterprise size, clear integration needs, and 3-month timeline = SQL for account executive.