Key Takeaways
- Product qualified leads (PQLs) are potential customers who have tried a product and shown a strong likelihood of becoming paying customers.
- PQLs are identified through product usage and engagement, providing a more accurate representation of their purchase intent compared to traditional lead qualification methods.
- By focusing on PQLs, sales and marketing teams can increase their chances of closing deals and building a sustainable customer base of engaged and valuable customers.
Imagine this: You’re a salesperson, and you’ve just spent hours qualifying a lead. You’ve checked all the boxes: They’re in the right industry, they have the right budget, and they’re interested in your product. But when you finally reach out to them, they tell you they’re not ready to buy. Sound familiar? If so, you’re not alone. Traditional lead qualification methods are becoming less and less effective. That’s where product qualified leads (PQLs) come in.
What is a PQL?
A PQL is a potential customer who has tried your product and taken actions that indicate a strong likelihood of becoming a paying customer. They’re different from sales qualified leads (SQLs), which are identified through traditional methods like lead forms and marketing engagement. PQLs are identified through product usage and engagement, indicating a higher level of intent.
PQL vs SQL
The key difference between PQLs and SQLs is that PQLs are identified based on their behavior within your product. This gives you a much clearer picture of their interest in your product and their likelihood to purchase. In contrast, SQLs are identified based on their expressed interest in your company’s offerings. This can be a less reliable indicator of their actual purchase intent.
How to Identify a PQL
There are two main ways to identify a PQL:
Measuring Product Engagement
Track key features used, usage frequency, and other metrics to score leads based on product engagement. For example, you could assign points for each feature used, each time the product is used, or for completing specific tasks within the product.
Measuring Activation Rate
Determine the percentage of users who complete key actions during a trial period to identify highly engaged leads. For example, you could track the percentage of users who sign up for a paid subscription, create a certain number of projects, or invite a certain number of team members.
How to Make PQLs Work for You
Once you’ve identified your PQLs, it’s important to have a plan in place to convert them into paying customers. Here are a few tips:
Find Your PQLs
Identify the specific in-product actions that indicate strong buying intent. This will vary depending on your product and business model.
Prioritize Your PQLs
Consider additional factors like demographics and company information to prioritize leads based on their fit and potential value.
Convert Your PQLs
Send targeted messages based on product usage and engagement to guide leads towards conversion, such as offering upgrades, highlighting value milestones, or providing support for heavy users.
Benefits of PQLs
There are many benefits to using PQLs in your sales and marketing efforts. Here are a few of the most important:
- PQLs focus sales and marketing efforts on leads who are already engaged with the product and have a demonstrated need for its value.
- They provide a more accurate representation of potential customers’ intent and purchase likelihood compared to traditional lead qualification methods.
- By starting with product adoption, businesses can build a more sustainable customer base of happy and valuable customers.
Bonus: The Rise of PQLs
PQLs are a relatively new concept, but they’re quickly gaining popularity as businesses realize the benefits of focusing on product engagement. In fact, a recent study by Forrester found that companies that use PQLs see a 20% increase in conversion rates.
If you’re not already using PQLs in your sales and marketing efforts, now is the time to start. By focusing on leads who are already engaged with your product, you can increase your chances of closing deals and building a sustainable customer base.
Conclusion
PQLs are a powerful tool for sales and marketing teams. By focusing on leads who are already engaged with your product, you can increase your chances of closing deals and building a sustainable customer base. If you’re not already using PQLs, now is the time to start.
Frequently Asked Questions:
What are the benefits of using PQLs?
PQLs provide a more accurate representation of potential customers’ intent and purchase likelihood, focus sales and marketing efforts on leads who are already engaged with the product, and help businesses build a more sustainable customer base of happy and valuable customers.
How do I identify a PQL?
You can identify a PQL by measuring product engagement, such as usage of core features, and activation rate during trial periods.
How do I convert a PQL into a paying customer?
You can convert a PQL into a paying customer by sending targeted messages based on product usage and engagement, offering upgrades, highlighting value milestones, or providing support for heavy users.
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