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Enter PQLs and EQLs: A Product-First Approach

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‍Product Qualified Leads (PQLs)

A Product Qualified Lead is someone who has demonstrated real value from your product through actual usage. Instead of guessing whether someone might be interested based on marketing activities, PQLs show us who's already getting value.

For example, let's say you offer a team collaboration tool. A PQL might be a user who has:

• Created multiple projects
• Invited team members
• Integrated with their existing tools
• Used key features regularly

These actions show they're actually experiencing the value your product provides - something no amount of website visits can tell you.

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Key benefits of PQLs include:

• Evidence of Engagement: They’ve already used your product, so their actions speak louder than words.
• Better Conversion Rates: Since these users have firsthand experience, they are more likely to convert.
• Data-Driven Insights: Their product usage provides rich insights that can inform further engagement strategies.

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Expansion Qualified Leads (EQLs)

EQLs take this a step further. These are existing customers showing signs they could benefit from additional features or higher-tier plans. They're particularly valuable in SaaS, where expansion revenue often drives growth.

Signs of an EQL might include:

• Reaching usage limits on their current plan
• Using advanced features frequently
• Having team members on a waiting list
• Accessing premium feature previews

Why EQLs matter:

• Identifying Growth Potential: They help pinpoint existing customers who are ready to expand their usage.
• Tailored Engagement: By understanding user behavior, companies can craft personalized strategies for retention and expansion.
• Revenue Boost: Focusing on EQLs can lead to significant revenue growth without the acquisition costs associated with new leads.

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Why Single Score Methods Don't Work Anymore

Many companies trying to modernize their approach simply switch from MQL scoring to PQL scoring. Now they're missing half the picture. Just because someone uses your product heavily doesn't mean they're a good fit for your business.

This is where dual scoring comes in.

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The Power of Dual Scoring: Combining Fit and Activity

Dual scoring looks at two crucial dimensions:

Fit Score: How well does the user match your ideal customer profile? This includes:

1. Company size and industry
2. Technology stack
3. Budget and resources
4. Geographic location

Activity Score: How engaged are they with your product? This tracks:

1. Feature usage frequency
2. User adoption within their team
3. Time spent in key workflows
4. Achievement of value milestones

When you combine these scores, you get a much clearer picture of your best opportunities. A high-fit, high-activity user is your dream customer. They're not just using your product - they're the type of customer you can grow with.

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Making It Work: Implement PQL & EQL Scoring

Now that we understand the “what” and “why,” let’s dive into the “how.” You have two clear paths to implement PQL and EQL scoring: a manual, do-it-yourself process, or leveraging an automated solution like Intempt’s Fit and Activity model.

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Let's look at both:

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The Manual Way

For those who are not yet ready to invest in an automated system, a manual process can be a viable starting point. Here’s how you can do it:

Define Your Fit Criteria

1. List the key characteristics of your ideal customer (industry, company size, etc.).
2. Use your CRM data to filter leads based on these criteria.

Track Product Activity

1. Use analytics tools such as Mixpanel, Amplitude, or Heap to capture key in-app behaviors.
2. Manually compile data on usage patterns, feature adoption, and engagement metrics.

Create a Scoring Model

1. Develop a spreadsheet that assigns weights to various fit and activity factors.
2. For instance, a high fit score might come from being in the right industry, while a high activity score might result from frequent logins or feature usage.
3. Sum these scores to create a dual score for each lead.

Analyze and Act

1. Regularly review the scores to identify top PQLs and EQLs.
2. Pass these high-scoring leads on to your sales or customer success teams for targeted outreach.

But let's be real - this is time-consuming and hard to scale. As your user base grows, maintaining accurate, real-time scoring becomes nearly impossible.

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The Smart Way

Instead of managing everything manually, you can use marketing automation tools to automate your dual-scoring workflow. Here's how this process typically works:

Automated Fit Scoring:
The tool automatically segments users based on your predefined ICP criteria. As soon as a new user comes in, their data is evaluated against your target profile.

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Real-Time Activity Tracking:
The platform continuously monitors user interactions—whether it’s feature usage, session duration, or login frequency—to keep the activity score up to date.

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Instant Dual Scoring:
By merging the fit and activity scores, the tool immediately identifies which users qualify as high-potential leads (PQLs) or expansion opportunities (EQLs). This automation eliminates manual labor and guesswork.

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Actionable Workflows:
With automation, you can set up workflows that automatically route high-scoring leads to your sales or customer success teams, ensuring timely and personalized follow-up.

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The key advantage of this automated approach is that your team can focus on engaging with qualified leads rather than spending time identifying them.

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Fit & Activity Scoring with Intempt

Using Intempt, you can evaluate your leads through custom Fit & Activity scoring. It’s all about creating a matrix that uses fit attributes (like job title and industry) and activity events (like signups and logins). Leads are scored as “Low,” “Medium,” or “High,” ensuring you always have actionable insights. Qualifying leads early on is crucial to avoid wasted resources and improve sales success.

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Fit Criteria include things like company size, role, and budget authority. The goal is to make sure this lead could be a good long-term customer.

Activity Criteria look at how users are engaging—what features are they exploring, and are they using the product consistently?

Score Decay Ensure your scores are up to date by implementing decay for inactivity. Leads that have not interacted in a set period should see a reduction in their activity score, ensuring your sales team only focuses on leads with ongoing interest.

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Scores are updated dynamically as user behavior evolves, which means your sales team always knows when it’s the right time to reach out.

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Example PQL model

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Example EQL model

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Making the Switch

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Moving to a dual-scoring approach with PQLs and EQLs isn't just about adopting new metrics - it's about aligning your entire go-to-market strategy with how modern SaaS products are bought and sold. (Watch our founder's guide on transition from a MQL to a PQL model)

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Start by:

1. Defining what "product qualified" means for your specific product
2. Identifying your key expansion signals
3. Setting up proper tracking for both fit and activity metrics
4. Automating the process

Remember, the goal isn’t just to generate lead volume — it’s to generate the best-fit leads. With the right tools and a smart strategy. Whether you use Intempt or another solution, the goal is to make lead qualification a seamless, data-driven process.

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Happy qualifying!