How do you know whether you have bad sales funnel conversion rates?

🤔 Here's one short tip on improving marketing execution — How do you know whether you have bad sales funnel conversion rates?

Over the last ten years, I've managed, and researched sales funnel analysis on conversion rates.

The truth is, 90% of the time, I wasn't sure I was working off the right metrics.

Use these assumptions below and throw the rest away:

Funnel Stage Average Conversion Rate:

Note: The problem here is that every company/person has a different definition of an MQL, SQL, and Sales Opportunity. Make sure yours is transparent so as not to skew numbers.

New Lead > Meeting attended

71.0%

A meeting attended > SAL

71.5%

SAL > Opportunity

38.6%

Opportunity > Deal

31.8%

If 31% seems high, you can also assume from SQL to close that 20% is about average. 30% is a good target; obviously, anything above is phenomenal.

Opportunity-to-Close rates should be >20%, but they vary widely depending on the industry, product offering, and price. It's painful to be a marketer when rates are <20%. There's honestly not a ton Marketing can do to help, but it puts exponential pressure on the top of the funnel (I've been there, it's no fun).

Deal close rate assumptions:

1. Deals < $2,000 in ACV should close on average within 14 days.

2. Deals < $5,000 in ACV should close on average within 30 days.

3. Deals < $25,000 in ACV should close on average within 90 days.

4. Deals < $100,000 in ACV should close within 90-180 days, depending on # of stakeholders and gates.

5. Deals > $100,000 in ACV will take 3–9 months to close on average. They can take the better part of a year, as these purchases are budgets on Annual cycles. Some deals will be faster, some shorter. But on average.

Now, like magic, you don't have to spend ten years learning about *conversion metrics* and focus on improving revenue flow-through.

Whenever you're ready, there are three ways I can help you:

(1) DUE DILIGENCE FOR INVESTORS & CEOs: A bespoke framework and capability model 'DEMAND KARMA' that delivers DD services to investors, VC firms and CEOs.

(2) ADVISORY: Retained advisory at funded scale-ups. A simple monthly fee. Helping CEOs build a scalable marketing machine. (Booked out until December)

(3) STRATEGY COACHING: Book time on my calendar to work through a standalone project or to get answers to your most pressing marketing strategy and execution questions.

If you're interested, let's jump on a call to see if you're a good fit.

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