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I've generated $4 million in opportunities but sales only close $200,000. Is this normal?
Opportunities for us are people who requested a price for our product.
Typically, it doesn't mean that because people request a price, they're also good prospects and in a position to buy right now.
With a 5% conversion rate from price request to customer, it doesn't sound that bad to me. (But it will depend on your product as well.)
I've been in enviroments where a 15-20% close rate from qualified opportunity to customer was considered good. And in this case a qualified opportunity was people that have gotten a demo of the product and fitted the qualification criteria. So this is a way filtered down definition of your definition of opportunity.
So all in all, I think your 5% is pretty decent.
But I think you should work on defining "opportunity" better. Or adding a stage after opportunity to show the qualified ones.
Not to get the conversion rate up. But more for measuring the effectiveness of your marketing efforts. And to be able to pinpoint which sources lead to the most qualified opportunities and not just the most price requests.
iBid Philippe. 5% isn't bad.
I do think you could try some different marketing & sales tactics to get a better understanding on what is (or is not) driving conversions. For example, does a "one-time sale" on your services drive more sales? Are your leads unqualified? Try a few tests to see if you can improve those conversion numbers.
A good conversion rate is the one better than yesterday. While some parts of your funnel might have "poor" conversationrates that you can optimize and action, it's all about the business and product you're working.
The question is not really if it's "normal", it's whether you can do better (we can always improve, right?), and how you can do that. One good starting point is looking at the data to begin with, in particular the leaks you have. What leads are not progressing in what stage - is it possible to create a pattern here that will inform your marketing tactics?. Ideally you know from sales what types of leads turn into $ so you can chase more of the same customer profiles.
Moreover, from marketing side it can be quite frustrating to attract the right leads and then for whatever reason see them turn into nothing. Dig into why that is. Does the product lack a key feature to progress more leads? Does the product in fact have that feature but the leads are somehow unaware? Quite often, talking with the reps and even the leads that didn't convert can surface meaningful insights.
Hi... not sure what your product is but that's really not a bad rate. My current targets are less than that. But it could be useful to map the customer journey if you haven't already and to figure out where you're losing your customers - what could be interesting is to make specific content targeted at these points so that you can try to reduce the number of lost conversions.
But I have a question for you - what tactics did you employ to get the 4 million in opportunities?
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