As a results-focused marketer, there are a few reports that you should review each quarter to monitor the success of your campaigns. One of these reports is the Marketing Lead Performance report, which shows how many of the leads generated made it down the funnel. When combined with other metrics like the number of marketing-sourced deals, this is a crucial report for understanding the value of marketing activities over the quarter. Because of the nature of CRM reporting which does not track historical data on records, a report to dissect lead stages often isn’t possible without taking your data to another application like Excel or using InsightSquared’s lead funnel reports.

The first piece of data that you need to make this analysis is about how your lead funnel operates. Most marketing lead funnels require that a lead passes through each stage (Such as MQL, TAL, and TQL) to progress to the next stage. If this is true for you, your funnel will be much simpler to build. We’ll plan on this being true, in which case the only other piece of information you’ll need is the create date for each marketing-sourced lead, so that you are only operating with this quarter’s leads. If you are considering a report for longer time periods, such as across two quarters, you may also want the dates that a lead reached each stage, so that you can attribute their behavior to activities in the past or more recently.

Once you have your data set, you can build your chart. Calculate the total number of leads in each stage divided by the number in the stage before it to get your conversion rate from stage to stage, and then also divide the number in that stage out of the total of all stages above it. The final number you will want to calculate is your win rate from each stage, dividing the number of leads in that stage by the number of closed deals from this population of leads.

Now that you have the data on each stage, build your funnel images. Excel lacks a good chart type for representing a funnel, but Powerpoint has a function to create a sharp-looking funnel that you can label and share with your team and management via the Shape Tool. Whether you create your funnel in Excel or use InsightSquared’s reporting tool, there’s a few questions you can ask to review your funnel performance.

Are you flooding your sales team with low-quality leads?

This might sound impossible, but passing too many leads to your sales team can be just as bad as too few. Hot leads will sit uncalled for days while reps chase follow-up activities on low quality MQLs. Compare the number of leads in your “Pass to Sales” stage compare to the number of calls the sales team is expected to make. For example, if your four business development reps are expected to each make 50 calls a day, but they are receiving leads a day, leads will be aging out without getting a call. In that case, their attention is fading and you’re losing opportunities as the leads cool off or engage with your competitors. This may be a sign that you are passing leads to sales too aggressively, and further qualification or nurturing would be valuable to make sure your reps are not talking with unqualified prospects.

Do your funnel stages accurately represent your win rate by stage?

Your win rate by stage must increase significantly with each step. Your win rate by stage is very useful for predictive analytics, and for finding problems in your funnel conversion rates. If you have two stages with no real increase in win rate, ask what the purpose of the stages are. Each step should be about only passing on the more highly qualified leads to your sales organization. For another example, if your win rate from your final funnel stage is under 80%, it could be a sign that leads that are anticipated to close are not actually well qualified for your product and drop out as a result. There are other possible causes as well, but either way you would expect a high win rate from your final stages, roughly matching the predicted win rate in your CRM for that stage.

Is your funnel becoming more efficient from month to month?

After building a few reports for different periods, you should review the trends over time. Do your funnels mostly look the same from month to month? Are there any spikes or dips in your conversion rates that you can’t otherwise account for with marketing activities? Large events like conferences can sometimes skew numbers for one time period, but you’d expect the numbers to return afterwards.
Have questions about building your own marketing funnel, or how to represent your stages? Let us know how we can help you in the comments.

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