An Excel Dashboard for Sales Pipeline Health
As a sales performer, you know every activity impacts revenue. Our Sales Funnel Calculator is an affordable alternative to help understand the length of your sales cycle without a CRM management tool. If you don’t have a great tool for reporting on conversions and velocity, this can serve as your “business intelligence dashboard” for achieving results.
Here is what you will find when you download the calculator:
Three Simple Steps to Optimize Conversions & Accelerate Sales Velocity
- Establish a “blueprint” and input your metrics to define your starting point
- Set your individual revenue target to identify estimated lead volume
- Measure conversion rate and pipeline velocity based on your sales cycle
Understanding Sales Funnel Metrics
What is my Conversion Rate?
Definition: Conversion rates measure the successful forward movement of leads and opportunities in the sales funnel. That forward movement can be to the next stage or any subsequent stage further down the sales revenue funnel.
How do you measure or calculate Sales Conversion Rates?
- Determine what period of time you should measure based on your sales cycle (e.g. weekly, monthly).
- Total the number of sales opportunities that were in each funnel stage at the beginning of the period.
- Determine how many moved forward by the end of the period.
- Divide the number of opportunities that moved forward by the number of opportunities at beginning of the period.
- Multiply this by 100 to calculate the conversion rate percentage.
The diagram below demonstrates how to calculate conversion rates for each stage of the sales cycle.
What is Sales Pipeline Velocity?
Definition: Velocity is the speed at which records move through your sales cycle – their passage of time. It is recommended to measures overall velocity for the entire sales funnel, but also for each opportunity stage to determine where your deals are slowing down or speeding up.
How do you measure or calculate sale pipeline velocity?
By its nature, velocity is not easy to calculate, as it requires knowing when each opportunity enters, exits or skips stages. Even for those who use Salesforce or other CRMs, it’s not natively tracked. In Salesforce, the field history tracking must be turned on for the necessary standard objects and custom objects.
- Total up how many days the opportunity sat in a stage before moving forward for each stage (as shown in the diagram below).
In this example, records spent an average of 5 days in the Prospect stage before moving to Engaged, where they spent an average of 10 days before moving to Marketing Qualified and so on. During January, it took 60 days on average for records to move completely through the funnel, with an average velocity of 10 days per stage.
- You would repeat this month-over-month and compare velocity by stage to diagnose where your deals slow down in your pipeline (see chart below).
The chart compares the average velocity for each stage in January and February. The highlighted days in February signaled a slowdown in velocity, which impacts how quickly a salesperson will achieve revenue goals.