Conversion Metrics = Conversion Metrics
While volume metrics indicate status and time, conversion metrics show how effectively you demonstrate the value of your product. This is achieved by measuring the rate at which leads, opportunities, or accounts move from one stage to another.
7 Conversion Metrics
- Prospect to MQL rate (CR1)
- MQL to SQL (CR2)
- Show rate, hand-off (CR3)
- Win rate = Win rate (CR4)
- Client churn rate during onboarding = Churn (CR5)
- Lack of impact leading to exit (CR6)
- Upsell during use for the duration of the contract (CR7)
Each of these is located between two levels of volume measurement. For example, between volume metric 1 (VM1) and volume metric 2 (VM2), there is a conversion ratio 1 (CR1), which shows the conversion ratio between the two volume metrics.
This demonstrates the value of a common language. If it were more widespread, all RevOps professionals would know that the term “CR1” refers to the shareholder database success rate, or the proportion of times someone moves from simply visiting a website (Identified) to actually being interested in a product or service (Interested).
LTO (Lead to Opportunity)
- Two stages of the BowTie funnel (awareness, education)
- Three volume metrics (Identified/VM1, Interested/VM2, Engaged/VM3).
- Two conversion ratios (CR1, CR2).
OTC (Opportunity to Close)
- One stage BowTie funnel (selection)
- Two volume metrics (Priority/VM4, Committed/VM5)
- Two conversion ratios (CR3, CR4)
Churn
- Two stages of the BowTie funnel (Onboard, Achieve Impact)
- Two volume metrics (Ready/VM6, Recurring Impact/VM7)
- Two conversion ratios (CR5, CR6)
Great benefits
The potential benefit of all this is huge. When your volume metrics are inside your CRM and you’re tracking conversion rates after a customer acquisition (engagement), you can start to address churn. This setup provides the option of a single source of truth (i.e. the person running the forecasting models, the RevOps professional!).
Because this person tracks both the LTO ratio and the churn ratio, there’s no need to consult this information with the marketing automation fanto data platform and finance department. The result? A more holistic view of the situation.
Time Metrics
The final building block in the funnel is the time metric, which measures how long it takes to move from one stage to the next and shows how quickly you help customers move through the sales process.
7 Time metrics
- Length of time until engagement is achieved (Δt1)
- Length of prospecting campaign (Δt2)
- The time it takes to set up a meeting and convert it into a qualified opportunity (Δt3).
- Sales cycle (Δt4)
- Customer “life” time (Δt5)
- Time until the client achieves the desired impact (Δt6)
- Time to reach account penetration (Δt7)
These exist within the tiers of volume metrics with the impact of revops on customer lifetime value for b2b companies one time metric placed between the two tiers of volume metrics. This particular metric allows you to measure the length of the sales cycle, the time to sales initiation (how long it takes to onboard), and the length of the contract.
THIS is RevOps
These three metrics (volume, conversion, time) together increase the maturity level of your Revenue Operations and help determine the right allocation of resources. The main goal of RevOps experts is to focus on influencing all three of them, because that’s how you will know if you are having an impact.
This is Revenue Operations. If you don’t have it, then you’re either not doing RevOps or you’re not doing it well.
If you would like to discuss the situation in your company and arrange a RevOps consultation, please do not hesitate to contact us .