Cost per SQL
Average total marketing cost to generate one Sales Qualified Lead
What is Cost per SQL?
Cost per sales qualified lead (SQL) is the average marketing spend needed to produce one lead that sales has accepted as ready for a sales conversation. It divides total marketing spend by the number of SQLs generated.
It sits closer to revenue than cost per lead, because an SQL has passed both marketing and sales checks.
How this KPI is measured
- Function
- Marketing
- Sub-function
- Demand Generation
- Industry
- All Industries
- Type
- Lagging
- Impact
- Efficiency
- Unit
- $
- Measurement frequency
- Monthly / Quarterly
- Formula
- Total marketing spend / Number of SQLs generated
How to calculate it
Divide total marketing spend by the number of SQLs generated in the same period.
For example, if 60,000 was spent in a quarter and 120 SQLs were generated, the cost per SQL is 60,000 / 120 = 500.
Agree the SQL definition with sales, use a consistent spend definition, and break the figure down by channel to find the cheapest sources of sales-ready leads.
Where it is used
Comparing channels on sales-ready output
Judge sources by leads sales will actually work.
Planning budgets
Work out what is needed to hit an SQL target.
Aligning marketing and sales
Share a metric both teams accept.
How to improve it
Tips and common mistakes
- Do not compare with cost per lead. They measure different stages.
- If sales rejects many leads, check whether the definition is realistic.
- Include the cost of marketing staff and tools for a full picture.
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