PQLs vs PQAs
It isn't a choice - you need both!
PQLs vs. PQAs
It isn't a choice - you need both!
If you've been following the product-led space, you know product-led sales is the newest kid on the block. Product-led sales rely on PQLs and PQAs to drive targeted sales outreach, generating a higher ROI on your product-led efforts.
One of the ways to visualize these terms is in the form of funnels. I know PLG and funnels don't go hand in hand but hear me out:
Imagine a new lead is created in your self-serve product. The starting assumption is that product usage data is the basis of how these leads flow into one of these funnels:
𝗦𝗲𝗹𝗳-𝘀𝗲𝗿𝘃𝗲:
Leads in this funnel are either here to experience the product, poke around, or are not ready to buy. They might also be a single user or group of small users who might monetize later. The leads in this funnel don't need a sales assist as the product should be set up well if their use case evolves and they want to purchase a paid plan.
Characteristics of a lead that may fall under the category:
1. the account is not set up with a work email
2. lead that is not your ICP fit
3. leads that have not hit significant or active product usage
𝗣𝗤𝗟𝘀:
If this lead fits your ICP profile, shows significant product usage, and has multiple users using the product, they will flow into the Product Qualified Lead funnel. Now, there can be two scenarios; if the account is SMB, there is a likelihood that the buyer is a part of the active users. In that case, a product needs to deepen engagement, and a signal needs to be sent to sales to assist the buyer/admin in getting them over the line. (Note: if buyers are part of active users, there is a likelihood that they self-convert: do not cannibalize self-conversion).
If the account is MM or enterprise, there is a likelihood that the buyer is not a part of the active users. In this case, the account becomes a PQA. 👇
How do you know if an account has a buyer?
1. Hand raisers who are adding new team members
2. checking out the pricing page
3. clicking on 'talk to sales', etc.
4. trialing paid plans and add-ons
𝗣𝗤𝗔𝘀:
If the lead is an ICP, shows active product usage, and has multiple users with the same domain added to the account, but the account is possibly an MM or Enterprise - then there is a likelihood that the buyer is not a part of the active users. If this is the case, the account becomes a Product Qualified 'Account' and flows into the PQA funnel. The sales strategy requires the sales team to find out who the enterprise buyer is - show them their team's product usage and push the enterprise sale.
How do you know who a buyer in an enterprise account is?
1. "Book a demo" request or webinars attended from the same email domain as other users
2. Downloads of SOC 2 compliance reports, etc.
This is an oversimplification of these terms, but a good mental model to place them.
What else about PQLs and PQAs is confusing? Let me know below. 👇
Very well explained! Clear and Simple. Thanks.