The complete guide to tracking the lead journey: from MQL to SQL
Learn how to track and improve the entire lead journey (from MQL to SQL) with clear definitions, CRM setup tips & reporting practices that connect marketing to revenue.
We often think about growth in terms of stages within the buyer journey.
Early in the process, it is commonly referred to as the funnel, where leads are generated and nurtured.
The pipeline, on the other hand, refers to when there is a defined opportunity or active deal in progress.
At this stage, we are tracking key details such as deal value and sales stages, which gives us insight into projected revenue for the month, quarter, or year.
However, it is equally important to understand what drives pipeline creation.
If we are aiming to close $1 million in revenue this year, we need to work backward: how many open opportunities are required to hit that target?
And even before that, how many qualified leads are needed to generate those opportunities?
This is where lead or lifecycle stages come into play.
These stages help measure a lead’s progression in terms of maturity and qualification before it becomes a formal opportunity.
For marketing teams, this framework is invaluable.
That said, it can become overly complex if not managed carefully, particularly when multiple KPIs are being tracked simultaneously.
One of the most effective things a marketing team can do is align around a small set of KPIs that directly impact revenue outcomes.
Ultimately, while we typically have good visibility into the pipeline, we also need clarity into the earlier stages of the journey to truly understand what is fueling future revenue.
Defining MQLs: The Starting Point
Deals do not start as deals.
They begin as leads that are being developed, nurtured, and qualified.
One of the most common terms you will hear during this early stage is MQL, or Marketing Qualified Lead.
While the specific definition of an MQL can vary by business, the general idea is that an MQL meets a certain minimum threshold of qualification that signals sales-readiness.
This qualification is typically based on two components:
1. Lead Grade
Lead grade refers to firmographic or demographic characteristics (essentially, who the lead is).
If you sell fire trucks and a retiree fills out a form out of curiosity, they are not a good fit.
In contrast, if someone from a municipal fire department engages with your content, they match your ideal customer profile.
2. Lead Score
Lead score focuses on behavior and intent (what the lead is doing).
There are typically two paths to becoming an MQL:
- Hand raisers: These leads actively express interest, such as filling out a contact form or requesting a demo.
- Ensuring these leads are met with an immediate response is a core pillar of a successful speed-to-lead strategy.
- Behavior-based MQLs: These leads demonstrate a high level of intent through actions, like visiting your website repeatedly or engaging with multiple pieces of content.
When a lead reaches MQL status, it means they are a good fit for your business, and they have shown enough intent to signal readiness for outreach.
The Handoff: From MQL to SAL to SQL
Once a lead is identified as an MQL, the next stage is typically the SAL (Sales Accepted Lead).
This means the lead has been passed from marketing to sales, routed to the appropriate rep, and is now awaiting follow-up.
It is important to measure how many MQLs are actually being accepted by sales.
From there, it is the salesperson’s responsibility to engage the lead.
If the lead meets the criteria and expresses buying intent, they are converted into an SQL (Sales Qualified Lead).
At this stage, the lead becomes an opportunity in the CRM and enters the formal sales pipeline.
This transition is often where an outbound sales strategy for HubSpot and Salesforce becomes essential to ensure reps are qualifying correctly.
It is not enough to simply generate leads and hand them off.
If marketing fails to follow up on whether those leads convert into SQLs, there is no way to assess quality.
Reporting across this full funnel (MQL to SAL to SQL) is critical for meaningful growth.
Lead Quality and Engagement
When evaluating lead quality, it is not just about whether someone meets your target profile.
It is also about engagement.
Are they showing up for sales conversations?
Are they booking calls or requesting demos?
Measuring the percentage of MQLs that become SQLs gives valuable insight into lead quality:
This visibility gives marketing teams the ability to anticipate future pipeline gaps and adjust proactively.
For instance, if MQL volume is down this month, you know that could affect revenue two months from now.
This reporting also helps evaluate the ROI of specific campaigns, like trade shows.
Without MQL and SQL tracking, you have no way to determine if an event was worthwhile or just a branding exercise.
Building this level of reporting infrastructure often requires specialized help, which is why many teams turn to fractional sales and marketing ops to set up these dashboards.
Mind the Feedback Loop
Another key benefit of tracking MQLs, SALs, and SQLs is the visibility it provides into lead rejection.
When sales receives a lead and determines it is not a good fit, that feedback loop becomes essential for refining marketing strategies.
If a lead is disqualified, it should not just be deleted.
Instead, it should be entered into a lead recycling process to see if it can be developed for future opportunities.
This feedback loop allows marketing to adjust targeting strategies, such as refining ad audience criteria or prioritizing higher-quality acquisition channels.
Operationalizing this insight requires aligned definitions and clean systems across both teams.
The Role of CRM in Pre-Pipeline Reporting
To gain meaningful insights, your CRM (HubSpot, Salesforce, or another platform) must be properly configured.
Simply capturing leads is not enough.
You need clearly defined lifecycle stages and automation to progress leads through those stages.
Definitions for what qualifies as an MQL or SQL must be baked into your CRM logic.
You also need automation to accurately timestamp when a lead transitions from one stage to the next.
Without this precision, you risk having limited visibility and unreliable data.
SLAs and SOPs: Ensuring Smooth Handoffs
Two additional concepts are critical: SLAs (Service Level Agreements) and SOPs (Standard Operating Procedures).
These represent the formal agreements that define how marketing and sales work together.
Without clearly defined handoff procedures, the buyer experience can become fragmented.
Leads may be followed up with sporadically or even lost in transition.
When marketing and sales are aligned through well-defined SLAs, leads are managed efficiently, and the buyer journey remains seamless.
The Human Side of Reporting
At the core of all this reporting are real people.
These are your future customers, and it is essential to treat them accordingly.
While tracking and scoring are necessary for success, we must never lose sight of the human side of the buyer journey.
Every lead in your CRM is a person evaluating whether your product can solve a problem for them.
As you build systems to measure conversion rates, take the time to step into the buyer’s shoes.
Ask yourself: What does it feel like to engage with our brand?
The best-performing teams balance structure and reporting with empathy and customer-centricity.
Want to see where your lead journey breaks down?
Book a Tech Stack Audit to get a full breakdown of your strengths and weaknesses today.
