A Look At Unique Sales Funnel Metrics

Sales funnel metrics will help you in determining how healthy and profitable your deals channel really is

. Determining which key performance indicators to use and the amount of time between measurements will have a great impact on the data collected and the resulting tactics.

These measurements should be checked every week, each month and even each quarter. With the help of these measures it becomes much easier to know just efficiently your channel is performing and whether there is a problem which if present can then be rectified at the earliest.

As you strive to improve the effectiveness of your deals channel, there are a few key indicators that should be monitored. For example, the overall efficiency, funnel value is an vital one. Funnel value refers to the lifetime potential of the client. This full value provides insight into both current deals numbers as well as the future value of the client's business. This value is often used to help plot the amount of income that can be generated (earned) in future.

Though it is necessary that every deal in your deals conduit is measured; unfortunately, it is often impossible to maintain visibility with that data. Often, to streamline the analysis, each deal in a sales funnel is evaluated individually. Score cards or ratings for each aspect of the deal can then be monitored and weighted based upon the probability that the deal will go through. This process is often made a bit more accurate basically by weighting activities close to the completion of the transaction more heavily that interactions near the beginning.

Extra metrics that are measured in deals funnels are arrival rates, conversion rates and flow rates.. The arrival rate simply refers to the total number of deals that are going through the channel over a given period. Such a rate can be quantified in terms of its potential value as well as plain numbers. These records can then be made use of in order to estimate the amount of deals effort that is required and the figures can also be used to estimate the amount of cash flow required.

Conversion rate is another one of the more important deals channel metrics. This rate reflects a particular ratio of deals entering the conduit and which have been finished. This figure is used to measure how profitable a particular qualifying in process as well as sales process is. Conversion rates vary, however, industry benchmarks aid in determining the effectiveness of a particular sales process.

Another key metric is the flow rate. This funnel metric is defined as the amount of time a typical deal remains in the sales funnel. Such a rate is quantifiable as both an average as well as a spread. To cite an example, it could reflect the minimum and also the maximum time spent by the deal in the channel.

Unfortunately, industry benchmarks do not address the delays that often happen as large projects move through the sales channel. When determining the flow rate for your particular deals cycle, outliers should be taken out of the data to get a better picture of the metrics for an average deal.

by: Joost Williamson

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