FECT - Sales funnel metrics

FECT - Sales funnel metrics
(CopyRight 2009; Benjamin Goh, www.bensglobal.com)

There many ways one can measure the success of the sales funnel and these are normally measured over a fixed period. From the results, one can then determine the necessary corrective steps.

F for Funnel Metric.
This is the total value of all deals in the funnel. Since different deals will have varying degree of closure success, weightage for all deals can be added to reflect a more accurate estimate of the funnel value.

E for Eligibility Metric.
This is the measurement of the number and potential value of deals that are eligible or being qualified into the funnel over a pre-determined period. This will provide an indication of the rate of qualifying deals that in return, provides management an indication of the sales effort in generating qualified leads.

C for Conversion Metric.
This is the ratio of the deals that are closed against the deals that are just qualified into the funnel. This provides management with an indication of the success rate of a specific sales person in closing the deals that she or he qualifies.

T for Time Metric.
This measures the time taken for a deal to flow from the moment it is qualified into the funnel to the time it is closed (whether an order is received or the deal is lost or cancelled). Very often, one will find that there are deals that are strolling or stuck. These should be taken out of the funnel and managed accordingly so that the funnel will provide a more accurate representation of the sales flow.


Use the MathMarketing’s Sales Funnel Calculator™ to compute exactly how many sales we can generate from our sales funnel, and how many prospects we need in the top of the funnel to achieve our targets.
http://www.mathmarketing.com/sales-funnel-calculator-2


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