We’re going to take a look at great KPI examples you can use in optimizing sales funnel quality. Sales funnels are the be-all and end-all of sales processes.
If your funnel is behaving as it should, it’ll send a steady stream of leads your way, and you’ll have no problem converting them to customers.
However, if you’re struggling with leaks and your funnel isn’t performing as well as it should, it will be a lot harder for you and your sales team to meet your quotas.
Let’s dive in!
How Do KPIs Help You Optimize Sales Funnel Quality?
Data is key to an optimized sales process.
It tells you everything you need to know; from the quality of your leads to the effectiveness of different funnel phases.
Without data, you’re doomed to guesswork. And guesswork never optimized anyone’s sales funnel.
Fortunately, there are simple and engaging solutions that will help you and your team optimize your sales funnel quality. Namely, Spinify is a great sales dashboard that relies on gamification principles.
Your sales reps will get points for performing target actions, and you’ll be able to track performance across different funnel stages.
But more on that later. Let’s take a look at all the KPIs you can use.
Awareness Stage: Traffic KPIs
Your entire sales funnel depends on the first stage – awareness.
You need to make your prospects aware of your business to be able to convert them in due time.
And when it comes to prospecting, there’s nothing like traffic KPIs.
They can include:
- Website visits
- Social media traffic
- Advertising traffic
- Landing page and website performance
If you notice you’re getting more leads through one channel (especially if they turn out to be high-converting in the long run), you can double down on it.
The awareness phase will set you up for success, so make sure your prospecting efforts aren’t wasted by identifying and focusing on the high-converting methods.
Discovery Stage KPIs: Responses
If you want to optimize the quality of your sales funnel, pay attention to the most important discovery stage KPIs:
- Research to response rate
- Response rate
- Contact rate
- Qualification rate
Research to response rate will show you how much time your sales representatives should spend researching every prospect.
This metric is incredibly important for lead qualification, particularly if you’re mainly working with key accounts.
(New response rate – Old response rate)
Extra hours spent researching prospects
If you’re getting positives, you should focus on research. If your rate is in the negatives, have your reps contact more prospects.
Your general response rate can also be indicative of your reps’ and materials’ efficacy. If you have high response rates, you should only put in more work. However, if you have low response rates, you should identify areas for improvement.
The contact rate will show you how often your reps are reaching out. It’s important to keep them engaged.
If your reps aren’t reaching out enough, use Spinify to motivate them.
Finally, your qualification rate will show you how many leads ended up as qualified.
If your rate isn’t high enough, your team should focus more on your lead generation processes. After all, the goal is to maximize the number of qualified leads.
Evaluation Stage: Follow-Ups Are Crucial
If you want to optimize your sales funnel quality, it pays to monitor your follow-up rate.
Make sure your reps aren’t giving up too soon.
If your reps are struggling, use Spinify.
Its gamified approach ensures that reps stay engaged, and hungry for even more results even when they have to perform routine tasks.
Intent/Purchase Stage: Conversion, Conversion, and Conversion!
In the final phase, pay attention to the following KPIs if you want to optimize your sales funnel quality:
- Conversion rate (across the funnel, and by stages)
- Cost of customer acquisition
- Total customers and growth
- Total revenue won (and revenue won by revenue sources)
The conversion rate is a no-brainer. However, you should pay attention to both the overall conversion rate, and conversion rate by stages.
Pay attention to separate stages and identify those that need improvement.
For example, you may see a high conversion rate in the prospect to the customer stage, but not enough conversions lead to prospects. It could mean that your lead qualification process needs additional optimization.
The cost of customer acquisition doesn’t have to be high, but it’s always a great area to optimize. The lower the acquisition costs, the higher the profit margin. Pay attention to the costliest parts of the funnel, and aim to mitigate them.
Monitor the total number of new customers and period-to-period growth rates. The goal is to constantly acquire new customers, and improve upon your results from the past period.
Finally, total revenue won will help you reach your targets sooner.
However, if you want to dig into your data to see what you can improve, focus on revenue sources. Some are going to be more profitable than others, so double down on them and hit that target.
How Can Spinify Help You Optimize Sales Funnel Quality?
It takes a village to optimize your sales funnel quality or, at the very least, a team of highly-engaged sales reps.
When your salespeople are motivated, they’ll pay attention to your sales funnel quality, as well. Data will be helping from one side of the equation, while your reps will be driving progress from the other.
Soon enough, optimizing your sales funnel will become routine.
The main prerequisite is motivating your reps.
Fortunately, Spinify can help with that.
As a gamified sales dashboard, Spinify both motivates your sales reps to excel and helps you keep track of data you need to make smart decisions.