How to Calculate MQL to SQL Conversion Rate
Understanding the transition from a Marketing Qualified Lead (MQL) to a Sales Qualified Lead (SQL) is one of the most critical metrics for aligning sales and marketing teams. This KPI measures the quality of leads generated by marketing and the strictness of the qualification criteria used by sales.
What is the MQL to SQL Conversion Rate?
The MQL to SQL conversion rate represents the percentage of marketing leads that are accepted by the sales team as ready for direct sales engagement. A high rate typically indicates strong alignment between teams and high-quality lead generation, while a low rate often suggests a disconnect in lead scoring definitions or lead quality issues.
The Formula
To calculate the MQL to SQL conversion rate, you divide the total number of Sales Qualified Leads by the total number of Marketing Qualified Leads over a specific period, then multiply by 100.
Example: If your marketing team generated 500 MQLs last month, and the sales team accepted 75 of them as SQLs:
- Calculation: (75 / 500) × 100
- Result: 15% Conversion Rate
Why This Metric Matters
Tracking this conversion point helps diagnose specific funnel issues:
- Lead Quality: Are marketing campaigns attracting the right buyer personas?
- Lead Scoring: Is the threshold for becoming an MQL too low?
- Sales Handoff: Is the sales team following up quickly enough to qualify these leads?
Industry Benchmarks
While benchmarks vary heavily by industry (SaaS vs. Manufacturing vs. Retail), the average B2B MQL to SQL conversion rate typically hovers around 13%. High-performing organizations may see rates upward of 20-25%, while anything below 5-10% usually warrants a review of your lead scoring model.
How to Improve Your Conversion Rate
1. Refine Lead Scoring
Tighten the criteria for what constitutes an MQL. Use negative scoring for disqualified behaviors (e.g., visiting the careers page) and boost scores for high-intent actions (e.g., viewing pricing pages).
2. Improve Sales and Marketing Service Level Agreements (SLAs)
Ensure both teams agree on the exact definition of an MQL and an SQL. Ambiguity leads to rejected leads and lower conversion rates.
3. Nurture Leads Longer
If leads are dropping off before becoming SQLs, they might need more education. Implement mid-funnel email nurturing campaigns to build trust before the handoff occurs.