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A Look At Different Sales Funnel Metrics

Sales Funnel Metrics will help you in determining how healthy and successful your sales channel really is. It is important to take a few measurements that must then be checked from time to time.

These measurements should be checked each 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.

Among the different sales funnel metrics that are to be used to determine the efficiency of the channel, funnel value is an important one. It refers to the potential value of the entire deal in a channel and in fact it also represents the value of future sales. 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 sales conduit is measured; in truth, sometimes it is not possible to sign each and every value. In order to arrive at a more realistic funnel value it is necessary to weigh each deal by itself, especially in regard to its chances of completion. To get the correct funnel value and in case of doubt, then the deals that are placed at the start of your sales conduit must be given a lighter weight as compared to those deals that are close to being completed.

Arrival rate is another one of the important sales funnel metrics that need to be addressed. This particular rate refers to the total deals that are in the channel during a particular period of time. Such a rate can be quantified in terms of its potential value as well as plain numbers. These figures can then be made use of in order to estimate the amount of sales 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 sales funnel metrics. This rate reflects a particular ratio of deals entering the conduit and which have been completed. This figure is used to measure how successful a particular qualifying in process as well as sales process is. Perfect (hundred percent) conversion rates show that all deals that were qualified had been transformed into real sales. This is of course an ideal situation but is mostly unachievable in real life.

Flow rate should also be included in the more important sales funnel metrics as this rate is used for measuring the time for which a particular deal has sat in the channel. 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.

When checking this particular rate, it is more than likely that you will be able to identify many a deal that have been stuck in the channel and such deals are known as stuck deals. Such deals ought to be taken out and dealt with separately.


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July 16th, 2010 | Tags: , , , , | Category: General Sales | Comments are closed

44 comments to A Look At Different Sales Funnel Metrics

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