๐Ÿ”† “Our Lead to SQL ratio has fallen… and that’s a good thing”

๐Ÿ”† “Our Lead to SQL ratio has fallen… and that’s a good thing”

Yesterday I analyzed a testimonial I got from Adam Clarke, Chief Sales Officer at RoomRaccoon – and one of his quotes is worth reflecting upon.

It’s about the art of creating momentum with your SaaS business – and the value it brings when every aspect of your business gets aligned.

Here’s what he said:

“Interestingly, our SQL ratio has fallen. And I’m okay with that. It’s a consequence of us filtering out these people who were not for us and avoiding trying to force them into a sales process.

We’re identifying earlier that this isn’t the right prospect for us. So we’re avoiding spending a lot of time pulling them over the line and seeing them churn within six to 12 months.

The result: our Lead to SQL ratio has fallen, but what we are seeing is that our SQL to Closed has improved.

We’re spending more time with the right people, which ultimately helps our alignment with marketing; we’re building a much better profile of what an SQL should look like.”

Here’s the thing
It’s super easy to carve your business into departments – each with its own goals and metrics. What happens is that everyone will go full speed ahead to achieve their goals to look good.

  • Marketing will aim to fill the top of the funnel to present lots of ‘Marketing Qualified Leads to management.
  • Sales will aim to push and hold on to every opportunity to present a 3, 4, or 5x pipeline to leadership.
  • Services will do their very best to ensure +75% utilization and grow their service revenue numbers every quarter.

What happens?ย 

High departmental speed but no velocity as a business.
What Adam started to see was the power of alignment. Having fewer but better leads with a high probability of closing is better.

  • That creates a vibe across all departments
  • It raises the productivity across all departments
  • It drives the predictability of your traction

Question for you to reflect upon

Looking at the Lead to SQL ratio in your SaaS business – is it optimally aligned around what matters most: Winning more, better customers?


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