Here’s a tale of Fred and Sam, two hypothetical recruiters trying to increase their total number of placements by increasing their pipeline conversion rates. Like any other recruiter, they’re pretty busy so they only have so many hours in the day to work on improving their talk-track or honing their email pitch. To keep the comparison simple, let’s say they both have the exact same conversion rate at every step in their respective funnels:
Let’s see how each ultimately perform when they tackle improving different parts of their Job Order Funnel.
Fred – Improving Job Order to Internal Submission Conversion Rate
Fred focuses on the first step. Maybe he feels confident that once a Job Order converts to an Internal Submission, he’s got it made. From the funnel above, you can see that the conversion rate at that step (for the last 12 months) was 83%. Fred works hard and improves that conversion rate by 5%. So how does his final Placements number change with this conversion rate increase?
Sam – Improving Interview to Placement Conversion Rate
With his 5% increase at the first step of the funnel, he improved his total Placement for the year by 16. Not bad. Let’s see how Sam did:
Sam focuses on the last step that has the funnel’s worst conversion rate at 45.4%. Sure, improving this might be a bit harder; maybe Sam spends more time coaching his candidates and speaking to his clients who are on the fence about hiring. After a bit, he also improves this conversion rate by 5%. Let’s see what results:
Anyone surprised by the math? Sam’s improvement to his Job Order Funnel had a much larger impact than Fred’s, earning him 12% more placements from where he started out. Fred’s work only saw a 5% improvement. So, given the limited time and energy they both had, the step where Sam had chosen to spend his time improving saw a higher ROI.
Let Your Data Point to Your Wins
Instead of guessing where the biggest wins might be for your effort, having the data to show you where the lowest hanging fruit is can help you work smarter. One of the big ROIs of BI is to show you what to work on to yield to best results. Understanding your historical data in this way can lead you to improve your bottom line without a single extra lead. Working more efficiently and improving conversion rates are what analytics is all about.
Do you know your funnel’s conversion rates? What step in your funnel could use the most work? Let us know in the comments below.