PQL to paid: how to define PQLs and track conversion to revenue

A practical guide to PQL-to-paid conversion: define predictive PQL events, measure cohorts, and use segmentation to improve conversion and retention.

Updated 2026-01-28

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What PQL-to-paid measures

PQL-to-paid conversion measures what % of product-qualified leads become paying customers. It connects product usage signals to revenue outcomes and helps prioritize onboarding, activation, and sales follow-up.

Formula

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

How to define PQLs

  • Use signals that correlate with conversion and retention (validate with cohorts).
  • Separate self-serve vs sales-assisted PQL paths if they behave differently.
  • Revisit PQL definitions when product changes; keep the trend comparable.

Common mistakes

  • Defining PQLs using vanity events.
  • Mixing cohorts/time windows (PQLs from one month, conversions from another).
  • Optimizing PQL volume and destroying quality (conversion drops).

How to improve PQL-to-paid

  • Tighten PQL criteria to focus on behaviors tied to retention.
  • Add product nudges for the moment before purchase intent fades.
  • Align sales follow-up timing to the highest conversion window.

Benchmarks and targets

  • Benchmarks vary widely by product and motion.
  • Use historical cohorts to set targets instead of external averages.
  • Targets should improve quality, not just volume.

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