What is Cost Per MQL?
Cost Per MQL (Marketing Qualified Lead) is a metric that measures the average cost of acquiring a marketing qualified lead.
A marketing qualified lead is a prospect that has shown some interest in a company's products or services and is likely to become a paying customer. These leads are identified based on their online activities and interactions, like downloading a whitepaper, attending a webinar, or filling out a contact form.
You can calculate the Cost per MQL generated during a specific period using the following formula.
Cost Per MQL = Total Marketing Spend / Number of Marketing Qualified Leads
Why is Cost per MQL Important?
Cost Per MQL helps businesses understand the efficiency and effectiveness of their marketing efforts in generating high-quality leads that are more likely to convert into paid customers.
Also, by tracking this metric, companies can optimize their marketing campaigns and allocate resources more effectively to improve lead quality and reduce the cost of acquiring new customers generated during a specific period:
Cost per MQL is also useful for comparing the performance of different marketing channels, allowing businesses to invest more in the channels that generate higher-quality leads at a reasonable cost.
Difference between Cost Per Lead, Cost Per MQL, and Cost Per SQL
Cost Per Lead (CPL), Cost Per MQL, and Cost Per SQL (Sales Qualified Lead) are to measure the effectiveness of marketing and sales efforts in lead generation. Here are three key points of difference between these metrics:
Lead qualification stage
- Cost Per Lead (CPL) measures the average cost of acquiring any lead, regardless of their qualification or likelihood of converting into a customer.
- Cost Per MQL measures the average cost of acquiring a Marketing Qualified Lead that shows a higher engagement level than general leads. MQLs are identified based on their interactions with content and marketing campaigns.
- Cost Per SQL measures the average cost of acquiring a Sales Qualified Lead - a prospect that has been evaluated and is ready for a direct sales follow-up. SQLs typically go through the marketing funnel and are qualified by both marketing and sales teams as highly likely to convert into customers.
Purpose and Focus
- CPL focuses on the effectiveness of marketing campaigns in lead generation without considering the leads’ quality or sales readiness.
- Cost Per MQL focuses on the efficiency of marketing efforts in generating high-quality leads that are more likely to convert into paying customers.
- Cost Per SQL focuses on the effectiveness of marketing and sales strategies in identifying and nurturing leads ready for direct sales engagement and are highly likely to convert.
Optimization and resource allocation
- Tracking CPL enables companies to optimize their marketing campaigns to generate more leads at a lower cost.
- Tracking Cost Per MQL allows businesses to invest in marketing channels and campaigns that generate higher-quality leads. Thus, they can improve the overall lead-to-customer conversion rates.
- Tracking Cost Per SQL helps companies evaluate the efficiency of their sales processes. It also enables identifying opportunities to improve lead nurturing, qualification, and follow-up.