PQL conversion
The bridge between self-serve and sales-assisted motions.
- Formula
- PQLs -> paid / total PQLs
- Unit
- %
- Models
- SaaS
| All | 25%–30% | Gainsight; Tunguz |
| All | 9% | Gainsight; Tunguz |
| $1-5k ACV | 30% | Gainsight; Tunguz |
| $5-10k ACV | 39% | Gainsight; Tunguz |
What it is
PQL conversion measures the share of product-qualified leads that become paying customers — calculated as PQLs who convert to paid divided by total PQLs. A PQL is a free or trial user who has crossed a usage or engagement threshold that correlates with purchase intent.
How to calculate it
Divide the count of PQLs who upgraded to a paid plan (within a defined window) by the total number of PQLs identified in the same cohort, then multiply by 100.
Why it matters
For B2B SaaS with product-led growth motions, PQL conversion is a leading revenue signal and a gauge of sales efficiency. PQLs convert at a meaningfully higher rate than unqualified leads, so the metric reflects the quality of the product experience and the targeting logic that defines a PQL.
Benchmarks & pitfalls
According to Gainsight and Tunguz, PQL-to-paid conversion runs roughly 25–30%, roughly three times the ~9% rate observed for unqualified leads. At the $1–5k ACV tier conversion is approximately 30%; at $5–10k ACV it rises to ~39%, likely reflecting more deliberate intent at higher price points. The definition of a PQL varies widely across companies — comparing your rate externally is only meaningful if the PQL criteria are similar. This is a published benchmark, not a directional rule of thumb.