B2B sales funnel metrics to boost business growth
Each person's customer purchase journey is unique and complicated in today's environment when customers have continual access to information and many options. As a result, this shift presents various issues for current B2B sales teams to overcome.
B2B selling involves more stakeholders, and the stakes are significantly higher as compared to B2C. With longer sales funnels, confirming the purchase and closing the deal takes months and that's why identifying and tracking meaningful B2B sales funnel metrics for your sales team is important for boosting business growth.
What is a B2B Sales Funnel?
B2B sales funnel is an efficient technique to determine where your leads are in their purchase journeys and arrange the further action steps appropriately to get maximum converts. It consists of five stages as follows:
Awareness: Lead generation
Consideration: Lead nurturing and qualification
Preference: Meeting with the leads
Purchase: Closing the sale
Loyalty: Retention and Referrals
While each company has its approach to handling the sales process and consumer interactions leading up to a transaction, they are primarily divided into three stages.
- Top of the funnel
- Middle of the funnel
- Bottom of the funnel
What is Top of the funnel stage?
Initially, your potential customers face a specific difficulty in their purchase journey and are studying and learning about it, which comes under the Top of the funnel stage.
Top of the Sales Funnel focuses on awareness and discovering your B2B business's products and services.
What is the middle of the funnel stage?
The middle of the funnel focuses on addressing problem-aware, and the solution-aware leads actively looking for available products and services to solve the problems.
What is the bottom of the funnel stage?
The bottom of the funnel focuses on negotiating with the qualified leads and closing the deals.
Now that you know the process correctly, it's not enough to have a sales funnel.
It would help if you constantly tracked that your leads process smoothly through all the stages to get maximum conversions.
Let's see some of the B2B sales funnel metrics for B2B businesses:
What are B2B sales funnel metrics?
Some of the B2B sales funnel metrics to track for boosting business growth are:
Closing Rate
MQL to SQL Conversion Rate
New leads by source
Estimated revenue by lead source
Average lead response time
Net Promoter Score (NPS)
Sales Cycle Length
Closing Rate
Closing Rate is one of the most important
performance indicators for B2B sales and is focused
on the bottom of your sales funnel.
MQL to SQL conversion rate focuses on the middle of the funnel stage. A marketing qualified lead (MQL) is a prospect that has recently entered your sales funnel by showing an interest in your firm through signup or a contact form.
A Sales Qualified Lead (SQL) is a prospect that is actively willing to know about your products by speaking to a sales team member. This shows how well your marketing and sales efforts are combining to deliver results.
How to calculate MQL to SQL Conversion Rate?
New leads by source
It is recommended to target trusted sources by analyzing how many leads are going through your sales funnel and where they're coming from. If you observe that more people are entering at the top-of-the-funnel stage from podcasts, you'll be able to designate a bigger team and push more quality content to improve the reach and leads from the podcast.
Estimated revenue by lead source
Tracking this metric will help you allocate time and resources to the source that generates maximum leads- be it cold calling, email services, or contact form requests. In addition, calculating the approximate profitability from each lead source will help you optimize your sales plans and leverage the profitable sources to get new leads.
Average lead response time
Average lead response time focuses on the preference to purchase at the bottom of the funnel stage. Measuring lead response time aims to generate a quantifiable enhancement in customer service that leads to higher revenue conversion. The average lead response time is measured in minutes, hours, or even days from when a lead is identified to how long it takes for the sales rep to respond to the leads.
Net Promoter Score (NPS)
Net Promoter Score(NPS) focuses on the retention and referral stage. B2B businesses are heavily dependent on referrals. Net Promoter Score(NPS) helps your firm in quantifying user feedback.
How to calculate Net Promoter Score?
Ask your clients to rate the firm on a scale of 0-10 on how they are to refer or suggest your firm to others.
Once you have the information, label 9-10 as promoters, 7-8 as passives and 0-6 as detractors.
Calculate the net promoter score using the formula:
Sales Cycle Length
One of the essential B2B funnel metrics is the sales cycle length that tracks how long it takes for a lead or a prospect to convert into an order. This will help a sales force look at the bigger picture and consider how they might cut the sales cycle length by becoming more effective.
Conclusion
Boosting business growth gets a lot easier if you keep track of the appropriate metrics and establish the right KPIs to achieve it.
Keep us in mind next time you need guidance about improving your funnel metrics by analyzing data or defining strategies to win! Check out our Digital Marketing Services today!
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