Product Qualified Leads

What is a Product Qualified Lead Definition? 

Leads who have seen the product's value through a free trial or freemium model are considered Product Qualified Leads (PQLs).

A user who signs up for a free trial or freemium model does not automatically qualify as a lead for your product. For a user's actions to be labelled as PQL, they must first explore various product features and carry out specific steps.

One common fallacy concerning PQLs is that a product-led growth model eliminates the need for marketing. As customers only feel the product's value after opting for a free trial or freemium model, marketing plays a crucial role in the product-led growth method.

Why is Product Qualified Lead Important in SaaS? 

Except for the largest enterprises, most SaaS users would instead test out a product for free before making a permanent commitment. The PQL product qualified lead model is helpful since it caters to the 'try before you buy' philosophy.

Product Qualified Leads (PQLs) help businesses find new sales leads. Salespeople like the opportunity to zero in on the most promising leads and contact them at the best time.

Because the leads have already used the product in some capacity, they can save time on nurturing them further along in the sales process.

In doing so, they can save time and boost morale within their respective teams.

As a result, the PQL product qualified lead model is becoming more scalable, as less 'human touch' is required to seal the deal ultimately.

How to Qualify a Product Qualified Lead? 

Determine whether or not your service is valuable enough to warrant a financial commitment from potential customers by tracking the percentage of PQLs who eventually upgrade to paying customers. To determine the PQL to Paid conversion rate for a given period, we need to divide the number of accounts that transitioned from PQL to Paid by the total number of PQLs for that time frame.

Product-qualified leads formula – 

PQL to Paid Conversion Rate + Total number of PQLs that converted to Paid / Total PQLs