Tracking the MQL to SAL conversion rates reveals insights into the sales cycle process. The MQL to SAL conversion rate is typically a function of the marketing teams’ ability to target prospective customers. Highly relevant marketing campaigns will drive the prospective customers with a high intent to purchase and this will lead to high conversion rates. A low conversion rate may have one or more of the following causes: Low rates may indicate that the MQLs do not fit with the Ideal Customer Profile; the SDR may uncover information that was not readily apparent from the MQL information envelope. Another potential reason is a disconnect in the understanding of the Ideal Customer Profile definition between sales and marketing.
Timing also plays a role. Companies with a long Sales Cycle will only benefit from tracking conversion rates over time; tracking monthly rates will likely show volatility. Companies that serve early markets will find that MQL-to-SAL conversion rates will lag benchmarks as they build brand awareness and educate the market. In this situation as well, tacking conversion rates over time makes more sense than looking at performance in individual months.