What Is a Service Qualified Lead? [Definition]

There are a myriad number of three-letter acronyms in the business and customer service world, so we're defining one of them in under 300 words: service qualified lead, or SQL.

SQL can also refer to "sales qualified lead," or those leads that your sales team has accepted as ready for a direct sales follow-up. This qualification will help your sales and marketing teams stay on the same page in terms of the quality and volume of leads that you are handing over to your sales team. You can learn more about sales qualification in this guide.

Meanwhile, read on for the definition of this new customer service term we've started using here at HubSpot.

What Is a Service Qualified Lead?

Service qualified leads provide additional value to customers by helping them see more success as they evolve using a company's product or service with the help of additional upgrades. SQLs can also lower the cost of customer acquisition (CAC) and increase customer lifetime value (LTV) by retaining customers longer and encouraging them to buy more products that help them derive more value over time.

Customer service reps have a big opportunity to impact their organization's bottom line by identifying SQLs and re-connecting them with a sales rep to identify possible upsell and cross-sell opportunities. Make sure to actively listen to your customers for signals they have a need that can be solved with your product or service and could benefit from talking to a sales rep.