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What should you be reporting on as a data-driven marketer? Which metrics do you pull if you want to accurately report on marketing’s performance and improve your buyer’s journey in the future? Hard questions to answer. Luckily, here at BrightFunnel, we can shed some light on this topic.
If you’re looking to better understand the impact of your work throughout the funnel, intelligently plan for future campaigns at every stage, and prove how your work is helping grow the business as a whole, one report that you need to start looking at is your revenue funnel analysis.
Revenue funnel analysis reports give you a consistent look into how leads are flowing through your sales funnel. This type of report lets you understand the percentage of leads that become MQLs, meetings, pipeline, and closed-won deals. By understanding what percentage of opportunities turn into deals, what percentage of SQLs turn into opportunities, and so on, as a marketer, you can plan better. If you know that you need X amount of deals at the bottom of your funnel, you can work your way up to understand how many leads you need at the top!
Cohorted Revenue Waterfall and Stage Snapshot
There are a couple of different ways for you to look at this type of report. First, you can look at your funnel through a cohorted waterfall view. This shows how all leads generated during a certain period of time flow through your funnel. In other words, out of the 1000 leads you have created so far this quarter, how many of those leads have made it to MQL, SQL, or opportunities.
Second, you can look at this data as a stage snapshot, which shows you where everything is in your funnel at any given time, regardless of when the initial lead was generated. It is essentially a “snapshot” or a moment in time.
Why Does It Matter?
Funnel analysis reports give you a glimpse into how you’re moving leads through your sales funnel to closed-won. By looking at each stage in detail, you can determine where leads are getting stuck. Are leads getting stuck at the top of your funnel in the open lead stage? Maybe it’s time to rethink your nurture programs. Are they becoming MQLs but then falling off? You might want to redefine your stages with that disconnect in mind. Are SDRs booking meetings that aren’t converting into opportunities? Marketing and sales should come together to figure out what they can change in order to push those leads through.
Additionally, by understanding how leads convert through each stage, you and your sales leadership can better plan for how you are going to get to the number you need quarter-over-quarter.
What Do I Track?
To understand your sales funnel, you need to look at your leads, MQLs, SALs, SQLs, Opportunities, and Closed deals—or your own equivalent lead and sales stages. You can track this in your CRM, but it requires manual calculations around how leads are converting through each. However, this can be time consuming and difficult, and most marketers lack the resources to do this easily.
You can also use tools, such as BrightFunnel, that pull the conversion data in from your CRM and offer.
Revenue funnel analysis is just one of the top five reports that we recommend for every B2B marketer. To get the lowdown on even more helpful reports, download our latest ebook.