{"id":2685,"date":"2022-08-04T10:00:00","date_gmt":"2022-08-04T10:00:00","guid":{"rendered":"http:\/\/138.197.200.24\/resources\/blog\/are-product-qualified-leads-pqls-replacing-marketing-qualified-leads-mqls-in-saas\/"},"modified":"2026-08-06T10:22:56","modified_gmt":"2026-08-06T10:22:56","slug":"are-product-qualified-leads-pqls-replacing-marketing-qualified-leads-mqls-in-saas","status":"publish","type":"blog","link":"https:\/\/www.smartkarrot.com\/resources\/blog\/are-product-qualified-leads-pqls-replacing-marketing-qualified-leads-mqls-in-saas\/","title":{"rendered":"Are Product Qualified Leads (PQLs) Replacing Marketing Qualified Leads (MQLs) In SaaS?"},"content":{"rendered":"<div class=\"col-lg-8 ps-lg-4\" id=\"blogcatcontent\">\n<p>For years B2B companies have relied on marketing qualified leads (MQLs) for executing their inbound sales funnel. MQLs are still being used as a way to determine prospective customers\u2019 buying intent. But, over the past few years, a new concept is getting highlighted in the conversations of inbound marketing teams. The new buzzing term is product qualified leads (PQLs). There are some researches that suggest that product qualified leads (PQLs) have the potential to generate ten times more revenue than marketing qualified leads (MQLs).<\/p>\n<p>So, the question that is driving attention is whether Product Qualified Leads (PQLs) are replacing Marketing Qualified Leads (MQLs) in the SaaS market?<\/p>\n<p>Let us try to figure out the answer together.<\/p>\n<h2 class=\"wp-block-heading\" id=\"h-what-are-product-qualified-leads-pqls-and-marketing-qualified-leads-mqls\">What are Product Qualified Leads (PQLs) and Marketing Qualified Leads (MQLs)?<\/h2>\n<p>Before we dive deeper into our original question, let us first understand the two concepts so that we can clearly differentiate between them.\u00a0\u00a0\u00a0<\/p>\n<p>Product Qualified Leads (PQLs), in simplest terms, are leads (aka potential customers) that have been using a free version of a SaaS product and have taken some action and are likely to become a loyal customer. On the other hand, <a href=\"https:\/\/www.cmswire.com\/digital-marketing\/how-to-identify-a-marketing-qualified-lead\/\">Marketing Qualified Leads<\/a> (MQLs) are leads or potential customers that have been reviewed by marketing teams and they fulfill the criteria set by them which indicates that they are most likely to start using the company\u2019s SaaS product. Potential customers satisfying the criteria set by the marketing team are passed along to the sales team.<\/p>\n<p>While criteria for identifying a potential customer through PQL depends on their engagement with the SaaS product of the company the criteria for MQL is dependent on the users\u2019 engagement with the educational and engaging content produced specifically for inbound marketing.<\/p>\n<div class=\"lazyblock-subscription-1kvRKS wp-block-lazyblock-subscription\">\n<section class=\"bg-light-2 newsletter-sec block_newsletter_sec d-flex mt-5 mb-5\">\n<!--begin container --><\/p>\n<div class=\"container-fluid\">\n<!--begin row --><\/p>\n<div class=\"row\">\n<!--begin col-md-6--><br \/>\n<!--begin col-md-6--><\/p>\n<div class=\"col-md-4 p-0 col-lg-4 text-center\">\n<div class=\"img_box\">\n<picture><source data-srcset=\"\/wp-content\/uploads\/2021\/01\/newsletter-img1-1.png.webp\" type=\"image\/webp\"\/><img class=\"img-fluid perfmatters-lazy\" data-eio=\"p\" data-src=\"http:\/\/www.smartkarrot.com\/wp-content\/uploads\/2021\/01\/newsletter-img1-1.png\" decoding=\"async\" src=\"data:image\/svg+xml,%3Csvg%20xmlns='https:\/\/www.w3.org\/2000\/svg'%20width='0'%20height='0'%20viewBox='0%200%200%200'%3E%3C\/svg%3E\"\/><noscript><img class=\"img-fluid\" data-eio=\"p\" decoding=\"async\" src=\"http:\/\/www.smartkarrot.com\/wp-content\/uploads\/2021\/01\/newsletter-img1-1.png\"\/><\/noscript><\/picture>\n<\/div>\n<\/div>\n<div class=\"col-md-8 col-lg-8 text-left align-self-center p-0\">\n<div class=\"blog-banner-content text-center\">\n<h3>Like what you are reading?<br \/>\nSign up for our newsletter                                 <\/h3>\n<p><!--end newsletter_form_box --><\/p>\n<div class=\"single_line_newsletter_box\">\n<div class=\"wpcf7 no-js\" data-wpcf7-id=\"5771\" dir=\"ltr\" id=\"wpcf7-f5771-o1\" lang=\"en-US\">\n<div class=\"screen-reader-response\">\n<p aria-atomic=\"true\" aria-live=\"polite\" role=\"status\">\n<ul><\/ul>\n<\/p>\n<\/div>\n<form action=\"\/resources\/blog\/are-product-qualified-leads-pqls-replacing-marketing-qualified-leads-mqls-in-saas\/#wpcf7-f5771-o1\" aria-label=\"Contact form\" class=\"wpcf7-form init mailchimp-ext-0.5.72\" data-status=\"init\" method=\"post\" novalidate=\"novalidate\">\n<div style=\"display: none;\">\n<input name=\"_wpcf7\" type=\"hidden\" value=\"5771\"\/><br \/>\n<input name=\"_wpcf7_version\" type=\"hidden\" value=\"6.0.5\"\/><br \/>\n<input name=\"_wpcf7_locale\" type=\"hidden\" value=\"en_US\"\/><br \/>\n<input name=\"_wpcf7_unit_tag\" type=\"hidden\" value=\"wpcf7-f5771-o1\"\/><br \/>\n<input name=\"_wpcf7_container_post\" type=\"hidden\" value=\"0\"\/><br \/>\n<input name=\"_wpcf7_posted_data_hash\" type=\"hidden\" value=\"\"\/><br \/>\n<input name=\"_wpcf7_recaptcha_response\" type=\"hidden\" value=\"\"\/>\n<\/div>\n<p><span class=\"use-floating-validation-tip\"><span class=\"wpcf7-form-control-wrap\" data-name=\"Email\"><input aria-invalid=\"false\" aria-required=\"true\" class=\"wpcf7-form-control wpcf7-email wpcf7-validates-as-required wpcf7-text wpcf7-validates-as-email\" id=\"mailster-email-1\" maxlength=\"400\" name=\"Email\" placeholder=\"Enter your email\" size=\"40\" type=\"email\" value=\"\"\/><\/span><\/span><input class=\"wpcf7-form-control wpcf7-submit has-spinner submit-button button btn btn_button border-0 h_3 p-3 px-5\" id=\"submitFormButton\" type=\"submit\" value=\"Subscribe\"\/>\n<\/p>\n<div style=\"display:none;\">\n<p><input class=\"none\" name=\"Ad Campaign\" type=\"text\" value=\"\"\/><input class=\"none\" name=\"Ad Source\" type=\"text\" value=\"\"\/><input class=\"none\" name=\"Ad Medium\" type=\"text\" value=\"\"\/><input class=\"none\" name=\"Ad Keyword\" type=\"text\" value=\"NL Subscription,Blog,\"\/><input class=\"none\" name=\"utm_content\" type=\"text\" value=\"\"\/><input class=\"none\" name=\"Ad Referrer URL\" type=\"text\" value=\"\"\/><input class=\"none\" id=\"cf_form_submission_url\" name=\"handl_url\" type=\"text\" value=\"\/resources\/blog\/are-product-qualified-leads-pqls-replacing-marketing-qualified-leads-mqls-in-saas\/\"\/><input class=\"none\" id=\"gclid\" name=\"gclid\" type=\"text\" value=\"\"\/>\n<\/p>\n<\/div>\n<div aria-hidden=\"true\" class=\"wpcf7-response-output\"><\/div>\n<p style=\"display: none !important\"><span class=\"wpcf7-form-control-wrap referer-page\"><input aria-invalid=\"false\" class=\"wpcf7-form-control wpcf7-text referer-page\" data-value=\"https:\/\/Direct%20Visit\" name=\"referer-page\" type=\"hidden\" value=\"https:\/\/Direct%20Visit\"\/><\/span><\/p>\n<p><!-- Chimpmatic extension by Renzo Johnson -->\n<\/p>\n<\/form>\n<\/div>\n<\/div>\n<\/div>\n<p><!--end newsletter_form_box --><br \/>\n<!--end benefits -->\n<\/p>\n<\/div>\n<p><!--end col-md-6-->\n<\/p>\n<\/div>\n<p><!--end row -->\n<\/p>\n<\/div>\n<p><!--end container -->\n<\/p>\n<\/section>\n<\/div>\n<h2 class=\"wp-block-heading\" id=\"h-isn-t-mql-model-working-anymore\">Isn\u2019t MQL Model Working Anymore?<\/h2>\n<p>You might wonder whether the MQL model isn\u2019t working anymore in the market. And if it\u2019s working why is it being replaced by the PQL model?<\/p>\n<p>Well, marketing qualified leads have been generating satisfactory results for years now and they are still not obsolete. In fact, the primary inbound marketing strategies for most SaaS businesses are still built around marketing qualified leads.<\/p>\n<p>Businesses are still creating content to attract and engage audiences and gradually bring them down in the inbound sales funnel. The MQL model identifies the buying intent of potential customers based on the type of content the lead is engaging with.<\/p>\n<p>The MQL model starts with visitors who are converted into leads, then SQL, opportunity, and then finally customers gradually coming down the sales funnel. This is the way inbound marketing has been working for years and it\u2019s still generating results.<\/p>\n<p>BUT<\/p>\n<p>PQL model is showing greater possibilities of results when compared with the MQL model. As discussed earlier, some research in inbound marketing are suggesting that the PQL model can generate ten times more revenue than the MQL model.<\/p>\n<h2 class=\"wp-block-heading\" id=\"h-should-you-weave-product-qualified-leads-into-your-inbound-marketing-strategy\">Should You Weave Product Qualified Leads into Your Inbound Marketing Strategy?<\/h2>\n<p>By now it must have been clear that if you rely solely on finding the type of content a lead is engaging with, you can overlook many potential customers giving a clear indication that they are willing to pay for your product. So, it would be a wise decision to divert some resources and attention to focus on data showing user engagement with your SaaS product.<\/p>\n<p>In addition to digging data about user engagement with your content, you should also have an eye on the data showing user engagement with your product. If you closely observe your product and user engagements with its various features you can figure out criteria that indicate that a lead is ready to convert and pay for your product.<\/p>\n<p>Adding PQL into your inbound marketing strategy can prove to be a game-changer for your business. It cannot only increase the conversion rate but also keep the <a href=\"\/resources\/blog\/customer-acquisition-cost\/\">cost of acquisition<\/a> low thus providing the opportunity to scale your business with greater revenue efficiency. PQL strategy helps businesses determine focusing on which customer can be more rewarding.<\/p>\n<p>However, it isn\u2019t necessary to see PQL as a replacement for MQL. You can consider it as a gap-filler instead. Product qualified leads addresses the shortcomings of the old marketing qualified leads by optimizing conversion rates by tracking reliable indicators for future purchase and upgrades.<\/p>\n<h2 class=\"wp-block-heading\" id=\"h-how-are-pqls-better-than-mqls\">How are PQLs better than MQLs?<\/h2>\n<div aria-hidden=\"true\" class=\"wp-block-spacer\" style=\"height:21px\"><\/div>\n<p><strong>Now that we have looked at the difference between MQLs and PQLs, it is time to look at how PQLs are better than MQLs.<\/strong><\/p>\n<p>While you could be using PQL and MQL models together, there are few marketers who see PQL as a better alternative to MQL and they strongly believe that MQL should be replaced by PQL. Without a doubt, recent studies and research are indicating advantages of PQL over MQL.<\/p>\n<p>The following are the major advantages of product qualified leads:<\/p>\n<ul class=\"wp-block-list\">\n<li>PQL provides deeper context into the lead \u2013 Unlike marketing qualified leads, PQL focuses on leads using the product rather than those engaging with content. A user\u2019s interaction with a SaaS product provides more reliable data about the problem and intention of the target audience. The insights provided by the data regarding the use of SaaS product gives a clearer picture and deeper context into the lead. It is more helpful for a seller to approach leads that are easier to convert.<\/li>\n<li>PQL makes the sales team more focused \u2013 There\u2019s no denying the fact that the MQL model is a cumbersome process that generates heaps of data to be dug by the marketing and sales team. The huge amount of data can sometimes be overwhelming, if not misleading, for the sales team. As the PQL model is focused on product usage it generates lesser and more focused data thus keeping the sales team more focused on converting prospective customers.<\/li>\n<\/ul>\n<div aria-hidden=\"true\" class=\"wp-block-spacer\" style=\"height:16px\"><\/div>\n<h2 class=\"wp-block-heading\" id=\"h-making-product-qualified-leads-work-for-you\">Making Product Qualified Leads Work for You<\/h2>\n<p>Now, let\u2019s have a quick look at the strategies you can adopt to fully utilize PQL and increase your sales revenue manifolds.<\/p>\n<ul class=\"wp-block-list\">\n<li>Chalk Your Criteria for PQL \u2013 The first thing for implementing the PQL model effectively is finding out the criteria indicating the potentials of conversion. You need to scrutinize data related to your product usage and find out what features and levels of usage indicate a higher probability of lead conversion. For finding out your PQL criteria you can visualize your ideal successful customer and work backward to find their product journey.<\/li>\n<li>Prioritize Your Product Qualified Leads \u2013 You need to accept and embrace the fact that not everyone using your free trial product is a potential customer. So, it is important for you to prioritize the leads on whom you will be focusing your attention. Suppose you provide your service within a geographical boundary, you do not need to pay attention to leads falling out of that boundary. Similarly, if you are a B2B SaaS company focusing on a certain size of business you need to ignore other sizes of businesses testing your free trial. Prioritize and focus on leads that are actually your potential customers.<\/li>\n<li>Target Leads with Right Message at the Right Time \u2013 A wrongly formatted message or a right message delivered at the wrong time can ruin the chances of conversion. Instead of sending everyone the same custom message without considering the time you should work on identifying the right person and the right time and create the right message for them. And, remember to create a personalized message to make the customer feel that you are connecting to them directly and they have not received an email or a message sent to everyone. Customized messages reaching the right person at the right time can bring magical results.<\/li>\n<\/ul>\n<div aria-hidden=\"true\" class=\"wp-block-spacer\" style=\"height:12px\"><\/div>\n<h2 class=\"wp-block-heading\" id=\"h-final-thoughts\">Final Thoughts<\/h2>\n<p>Whether the MQL model will be completely replaced by the PQL model or not is only known to the future. In the present, the wisest decision is to start implementing PQL strategies alongside the traditional MQL model. PQL model is a promising strategy that is generating amazing results for SaaS businesses and you should not be left behind. The earlier you adopt the strategy the better you will be positioned against your competitors. It\u2019s quite possible that you start getting so much benefit using product qualified leads that marketing qualified leads automatically get replaced. But, till then you need to gradually shift your attention and resources towards PQL.\u00a0\u00a0\u00a0<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>This write-up discusses whether product-qualified leads will replace marketing-qualified leads in SaaS.<\/p>\n","protected":false},"author":7,"featured_media":2684,"template":"","format":"standard","meta":{"_acf_changed":false,"_yoast_wpseo_focuskw":"","_yoast_wpseo_title":"Are Product Qualified Leads (PQLs) Replacing Marketing Qualified Leads (MQLs) In SaaS?","_yoast_wpseo_metadesc":"This write-up discusses whether product-qualified leads will replace marketing-qualified leads in SaaS.","footnotes":""},"blog-category":[19],"class_list":["post-2685","blog","type-blog","status-publish","format-standard","has-post-thumbnail","hentry","blog-category-customer-success"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v28.2 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Are Product Qualified Leads (PQLs) Replacing Marketing Qualified Leads (MQLs) In SaaS?<\/title>\n<meta name=\"description\" content=\"This write-up discusses whether product-qualified leads will replace marketing-qualified leads in SaaS.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.smartkarrot.com\/resources\/blog\/are-product-qualified-leads-pqls-replacing-marketing-qualified-leads-mqls-in-saas\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Are Product Qualified Leads (PQLs) Replacing Marketing Qualified Leads (MQLs) In SaaS?\" \/>\n<meta property=\"og:description\" content=\"This write-up discusses whether product-qualified leads will replace marketing-qualified leads in SaaS.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.smartkarrot.com\/resources\/blog\/are-product-qualified-leads-pqls-replacing-marketing-qualified-leads-mqls-in-saas\/\" \/>\n<meta property=\"og:site_name\" content=\"Customer Success Blogs: Customer Churn Analysis &amp; 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