A March 2014 research study conducted by the Aberdeen Group depicts how companies are measuring and reporting conversion through different lead stages. A recent infographic illustrates the core findings of the report in a simple an easy to read format.
The infographic (see below) tracks a lead’s journey from its first engagement with Marketing (marketing – engaged contact) until the deal is closed. Analyzing a lead’s progression through these “tollgates” provides helpful points of measurement of marketing and sales effectiveness in terms of conversion from tollgate to tollgate. When measured over time, these metrics are useful in predicting revenue since they indicate typical drop off and conversion points.
Road map to Revenue and its Tollgates
Tollgate 1: Marketing Engaged Contact
The first tollgate deals with the conversion from a website visitor to a marketing engaged contact. These visitors have demonstrated some interest such as filling out a contact form but they are not yet ready to be contacted by sales. Survey respondents indicated an average conversion from website visitors to marketing- engaged contacts of 5.5%
Tollgate 2: Marketing-Qualified Lead
These qualified leads are an essential input to the pending sales conversation. For a lead to be considered marketing qualified it should reach a certain lead score that consists of demographic, behavioral and engagement data. According to the study, an average of 22% of marketing-engaged contacts become marketing-qualified leads.
Tollgate 3: Sales- Actioned Lead
The third tollgate measures the quality of the qualified leads sent by marketing by allowing sales to determine if these leads meet the standards for sales action. If for some reason these leads are not ready to talk to a rep they should return to marketing’s lead nurturing program. On average 36% of marketing qualified leads climb the ladder and turn into sales-actioned leads.
Tollgate 4: Sales Opportunity
For a lead to become an opportunity it usually means their budget, authority need and timing (BANT) have been confirmed. On average 33% of sales actioned leads become sales opportunities.
Tollgate 5: Closed Deal
This is the decision point. At this point a deal can be won, lost or returned to nurturing. On average 29% sales opportunities are closed.
With Marketing Automation software, CRM and by setting a close loop reporting system between Marketing and Sales, companies are very well positioned to track lead progress and create accurate pipeline & revenue reports.
Originally posted 2017-01-01 14:59:41.