Why CSQLs matter

Most SaaS teams are still chasing growth the old way: hire more sales reps, spend more on ads, and hope the math works out. But the math doesn’t work as well anymore. CAC is climbing. Payback periods are getting longer. And new-logo pipeline isn’t keeping pace with leadership, investor, and board expectations.

Meanwhile, you may already know the best source of revenue: The customers you already have.

When a customer is thriving in your product, they’re practically raising their hand for more.

• More seats

• More features

• More reasons to stick around

The good news is that you probably already have the signals. They’re in your product data. They’re in your QBR notes and your support inbox.

But if you don’t have a system for catching them, you could miss those important signals.

That’s where Customer Success Qualified Leads (CSQLs) come in. Hey, if you’re rolling your eyes at yet another acronym – I get it. This one’s worth a look though.

This guide is our take on what a CSQL really is, how to find them, and what to do once you find one.

What is a customer success qualified lead (CSQL)?

A CSQL is an expansion or referral opportunity that comes directly from your existing customers’ success with your product.

Here’s how we define it:

A CSQL is a lead for new revenue—upsell, cross-sell, or referral—generated by an existing customer’s proven success, and qualified by the Customer Success team as ready for sales engagement.

Put a bit more simply:

A CSQL is proof that a customer is getting value and that expansion makes sense. Customer Success spots it, qualifies it, and passes it on to Sales to close.

There are some important boundaries to keep in mind:

• A CSQL is not a renewal

• A CSQL is not a churn save

• A CSQL is actionable now or soon (within the current or next quarter)

CSQLs include both internal expansion (more seats, modules, products) and external expansion (referrals or sibling entities).

Where do CSQLs come from?

CSQLs aren’t random. They’re the predictable byproduct of a customer’s success with your product.

We think of it as a simple formula:
CSQL = success signal + expansion fit + timing

• Success signals: seat saturation (80%+), consistent usage growth, advanced feature adoption, NPS* ≥ 9, ROI milestones hit in QBRs

• Expansion fit: a clear next product (if you have multiple products) or module maps directly to customer goals, or a “phase two” project is emerging

• Timing triggers: renewal window approaching, new executive sponsor hired, budget expansion, or upgrade attempts

*We don’t suggest starting an NPS program if you don’t already have one running. But if you’re running NPS surveys, you might as well use them.

Which metrics can surface CSQLs?

Here’s a tactical list you can start tracking now:

• Seat saturation = Active seats / Licensed seats

• Feature Adoption = % of core features used (pick your 5–8 must-haves)

• Active user ratio = Active users / Total users

• Workflow completion rate = completed key actions ÷ started key actions

• Expansion intent events = gated feature clicks, upgrade attempts, support requests about new modules

• Advocacy index = NPS promoters, public reviews, or referrals

For a quick risk check before tagging an account as a CSQL, check for active high-severity tickets or product usage and engagement declines.

There aren’t real benchmarks for these metrics. You can set your own thresholds for, but you can consider these as a starting point if it’s helpful:

• Seat saturation ≥ 80%

• Feature Adoption ≥ 60% + one gated feature interaction

• NPS promoter with multiple engaged stakeholders

• Usage growth ≥ 25% month-over-month

• Engagement Score +25 points month-over-month

Who can use CSQLs?

• Customer success: detect and qualify; do not close

• Account executives/account managers: own commercial negotiation and closing

• Marketing: nurture “not yet” CSQLs with education, amplify advocates

• Revops/CS Ops: manage workflow, dashboards, attribution, and incentives

What does a CSQL handoff look like?

When you start looking for them, you’ll see the CSQLs there in your data. Here’s a sample workflow to get started:

1. Detect: Alerts from product usage + human signals from QBRs and support

2. Qualify: Has value been proven? Is there a clear next SKU? Buyer identified? Timing in this/next quarter?

3. Handoff: CSM creates CSQL record in CRM with proof of value, trigger event, expansion hypothesis, and stakeholders; routed to sales

4. Pursue: AE leads commercials; CSM joins discovery calls as SME

5. Measure: track # CSQLs created, acceptance rate, conversion, ARR impact, and NRR uplift

How can teams be incentivized around CSQLs?

CSMs shouldn't carry quota on CSQLs. These opportunities will come up, but they’re not driven by CSMs as much as discovered. There isn’t a set time period as there is with renewals, for example.

• CSMs: bonused on CSQLs created/accepted and NRR outcomes

• AEs/AMs: own expansion quota and commission

• Team-level goals: quarterly CS ⇄ Sales reviews of pipeline health

Which benchmarks define success?

You’ll find your rhythm with CSQLs, but these are a good place to start.

• CSQL acceptance rate: ≥ 70%

• CSQL → opportunity rate: ≥ 50%

• CSQL win rate: ≥ 30%

• Median cycle: ≤ 45 days

• 30%+ of expansion ARR sourced via CSQLs within 2 quarters

What are common mistakes with CSQLs?

• Logging “everything” as a lead → fix: use hard qualification gates

• CSMs negotiating commercials → fix: keep AE ownership

• Ad-hoc workflows → fix: single source of truth in CRM

• Uneven portfolios → fix: team-level targets with portfolio adjustments

How can you start in 14 days?

Week 1: define thresholds, add “CSQL” as a lead source in CRM, create record template, agree to SLAs so everyone knows what to expect and how to work with each other, train CS + Sales

Week 2: turn on alerts, run first CSQL standup, publish dashboard, retro first 10 CSQLs

CSQL FAQ

What is a customer success qualified lead (CSQL)?
A CSQL is a lead for new revenue—upsell, cross-sell, or referral—generated by an existing customer’s success and qualified by Customer Success.

How is a CSQL different from an mql or sql?

• MQL = new prospect from marketing

• SQL = sales-vetted prospect

• CSQL = expansion lead from existing customer.

Are renewals considered CSQLs?
No. Renewals are baseline. A CSQL is incremental revenue.

Who owns a CSQL?
CS identifies and qualifies; Sales owns closing. Boom.

What signals indicate a CSQL?
Seat saturation, feature adoption milestones, NPS promoters, usage and engagement growth with expansion fit.

Should CSMs carry quotas for CSQLs?
No. We think they can be bonused on CSQLs created and NRR, not closing revenue. If you have an opinion on this, please let us know. Comp plans aren’t our area of expertise.

How many CSQLs should we expect?
The worst answer in SaaS: It depends. There are not definitive benchmarks. To set internal benchmarks, you could do a proof-of-concept with select CSMs. Run the POC for a quarter and see what your numbers are. Measure CSQL acceptance and win rates.

Can referrals count as CSQLs?
Heck yeah. Advocacy-driven referrals are part of the CSQL family.

Turning customer success into pipeline

Your customers are one of your best growth channels. Every upsell or referral you close is cheaper, faster, and stickier than chasing strangers with ads and AI-generated SDR outreach.

CSQLs put structure around that idea. They give Customer Success a way to turn signals of success into qualified pipeline.

They give Sales a stream of high-converting opportunities. And they give leadership a growth lever that doesn’t depend on burning cash to chase cold leads.

This isn’t about piling more on your CSMs’ plates. It’s about capitalizing on a customer’s success with your product. Ideally you can build a clean workflow to find and close CSQLs.

If you build the detection metrics, set the handoff rules, and track results with the same rigor as you do for MQLs and SQLs, you’ll unlock a compounding advantage:

• Higher NRR

• Healthier customers

• Growth that doesn’t break the budget

SaaS teams who treat CSQLs as a core pipeline source have an edge. Because not many teams do this. Your NRR will thank you for it.

So start small. Implement your signals. Run your first CSQL standup. Watch what happens when your customers become your best leads.