If you’re a sales manager, executive or a business owner, there’s a pretty good chance that you already know what a sales funnel is and what it looks like. It is a diagram or illustration of the deals, opportunities and estimated revenue your sales team has pending in your sales pipeline. Executives and managers usually use this report to gather sales projections and forecasts but are rarely able to check on the conversion metrics between sales funnel stages.
The most popular conversion metric is usually referred to as ‘closing ratio’, or what percentage of opportunities that enter the top of the sales funnel actually close. If 100 prospects enter the top of the funnel and 17 of them close, then you have a 17% conversion ratio. This is great for tracking the overall skill level and effectiveness of both your team and the individual performance of members on your team.
The only drawback of a report illustrating closing ratios is that this report assumes 100% of your opportunities go through 100% of your sales process. However, we all know that this is not true. Some deals fickle out of our sales pipeline without showing up for an appointment or seeing our product. Some deals show up to the appointment, see the product and then become ghosts after receiving a proposal. There’s several stages of your sales funnel where prospects back off, go dark or disappear. These events obviously impact closing ratios, but many managers miss out on the conversion metrics based on stages in their funnel.
Enter: Conversion By Pipeline Stages. This is the one report your business cannot live without! Managers and execs can easily identify which percentage of appointments actually show up to a presentation, which percentage of appointments set actually make it to the proposal and any other conversion metric you want to see within your sales funnel. This allows managers to pinpoint which part of their sales funnel needs the most attention, training or correction rather than relying on a guess.
This report can be generated in real time based on a specific individual on your team, multiple individuals on your team or your team as a whole. Conversion by pipeline stage reports enable sales reps and managers to really dial in on their sales process and help them located low hanging opportunities in their business.