Definition
A sales-qualified opportunity (SQO) is an opportunity that meets qualification criteria and is entered into the active sales pipeline.
How to use it
- Define SQO criteria clearly (need, authority, budget, timeline) to reduce pipeline noise.
- Track SQO -> Won conversion and time-to-close for capacity planning.
- Review SQO quality by segment to prevent inflated pipeline coverage.
Common mistakes
- Promoting deals to SQO without a documented next step.
- Using SQO definitions that differ by rep or region.
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 "SQO (Sales-qualified Opportunity)" 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.
- Sanity-check with a related calculator from the same category on MetricKit.
- Read the related guide (e.g., Sales ops metrics hub: quota, pipeline, win rate, and capacity planning) for context and common pitfalls.
Where to use this on MetricKit
Calculators
- Sales Capacity Calculator (with Ramp): Estimate period bookings capacity from team size, quota per rep, expected attainment, and ramped vs ramping mix.
- OTE & Commission Rate Calculator: Compute on-target earnings (OTE), commission rate, and compensation split from base salary, variable pay, and quota.
- Sales Funnel Targets Calculator: Translate a revenue target into required wins, opportunities, SQLs, MQLs, and leads using funnel conversion rates.
- Activation Rate Calculator: Compute activation rate: what % of new signups reach your activation event (and what you need to hit a target).
- Trial-to-paid Conversion Calculator: Compute trial-to-paid conversion rate and estimate required conversions to hit a target.
Guides
- Sales ops metrics hub: quota, pipeline, win rate, and capacity planning: A practical hub for sales ops planning: quota attainment, pipeline coverage, required pipeline, sales capacity with ramp, and OTE math.
- Pipeline coverage and sales cycle math: set realistic targets (and avoid sandbagging): A practical guide to pipeline coverage: connect quota, win rate, sales cycle length, and CAC/payback constraints to set realistic growth targets.