PQL-to-paid Conversion

Definition

PQL-to-paid conversion measures what % of product-qualified leads (PQLs) become paying customers. It connects product usage signals to revenue outcomes.

Formula

PQL-to-paid = paid customers from PQLs / PQLs

Example

If 120 PQLs produce 18 paid customers, PQL-to-paid conversion is 15%.

How to use it

• Define PQLs using signals correlated with retention, not vanity actions.
• Segment by channel and persona to see where PQL quality differs.
• Align sales follow-up timing to the PQL signal window.

Common mistakes

• Mixing cohorts/time windows when attributing paid conversions to PQLs.
• Optimizing PQL volume at the expense of quality (conversion drops).
• Changing PQL definitions without re-baselining conversion rates.

Why this matters

This term matters because small changes compound in SaaS metrics. Use consistent definitions by cohort and segment so you can diagnose retention, payback, and growth quality.

Practical checklist

• Write a 1-line definition for "PQL-to-paid Conversion" that your team will use consistently.
• Keep the time window consistent (weekly/monthly/quarterly) when comparing trends.
• Segment results (channel/plan/cohort) before drawing big conclusions from blended averages.
• Use a calculator that references this term (e.g., PQL to Paid Conversion Calculator) to sanity-check assumptions.
• Read the related guide (e.g., PQL to paid: how to define PQLs and track conversion to revenue) for context and common pitfalls.

Where to use this on MetricKit