Q14 / REVENUE

Problem 7

Is my funnel actually working?

Find the lever worth pulling.

Five numbers. See, Try, Buy, Churn, Expand. Find where your funnel leaks and turn a revenue target into a marketing target.

Time: 5 MIN
Who: SOLO
Stage: STAGES 1-3
Access: FREE

Calculate my funnel

The short answer

How many leads do I need to hit my sales target? Work backwards through your funnel. Customers needed / Try-to-Buy rate = trials needed. Trials / See-to-Try rate = visitors needed. 10 customers at 20% and 10% conversion = 50 trials and 500 visitors.

How it works

Enter last month's See, Try, Buy and churn numbers.
See your conversion rates against stage benchmarks.
Set a customer target and get the marketing target behind it.

Worked example

Target: 10 new customers a month. Try-to-Buy is 1 in 5, See-to-Try is 1 in 10. You need 50 trials and 500 qualified visitors. Now marketing has a number, not a hope.

FAQ

What's a good conversion rate?

See-to-Try in single digits is normal. B2B trial-to-buy: aim for 1 in 3 at Stage 1, 1 in 4 at Stage 2.

Should I track MQLs and SQLs?

Pick one agreed lead definition and give marketing ownership of it. Two definitions mean two teams blaming each other.

When does expansion matter?

Later. If people don't buy and stay, expansion is a distraction.

From the book

Problem 7 - Is my funnel actually working?

Use this next

Calculate my funnel