Funnel Metrics
Measure the entire customer journey. Conversions, velocity, and the metrics that matter.
⏱️ TL;DR: Track stage-to-stage conversions, cycle times, and velocity. Use benchmarks to identify bottlenecks. Measure cohorts to understand true performance over time.
The RevOps Funnel
Unlike marketing funnels that stop at MQL, RevOps tracks the full journey:
| Stage | Definition | Owner |
|---|---|---|
| Visitor | Website visitor | Marketing |
| Lead | Known contact | Marketing |
| MQL | Marketing qualified | Marketing |
| SQL | Sales qualified | Sales |
| Opportunity | Active deal | Sales |
| Customer | Closed won | Sales/CS |
| Expansion | Upsell/cross-sell | CS/Sales |
Conversion Metrics
Track how leads move through stages:
Key Conversion Rates
| Conversion | Benchmark |
|---|---|
| Visitor → Lead | 2-5% |
| Lead → MQL | 20-40% |
| MQL → SQL | 30-50% |
| SQL → Opportunity | 50-70% |
| Opportunity → Win | 20-30% |
📊 Segment Your Analysis
Conversion rates vary wildly by source, segment, and product. Analyze by cohort, not just overall averages.
Velocity Metrics
How fast leads move through stages:
Key Velocity Metrics
- Lead-to-MQL time: Target 7-14 days
- MQL-to-SQL time: Target 1-3 days (follow-up speed)
- Sales cycle: Time from SQL to Close
- Time in stage: How long deals sit at each stage
Sales Cycle Benchmarks
| Deal Size | Typical Cycle |
|---|---|
| SMB (<$10K ACV) | 14-30 days |
| Mid-Market ($10-50K) | 30-90 days |
| Enterprise ($50K+) | 90-180+ days |
Pipeline Metrics
Health of your active pipeline:
- Pipeline coverage: Pipeline ÷ Quota (target 3-4x)
- Pipeline value: Total $ in active deals
- Weighted pipeline: Value × probability
- Pipeline created: New $ added this period
- Pipeline velocity: (# deals × win rate × ACV) ÷ cycle days
💡 Pipeline Velocity Formula
Velocity = (Qualified Opportunities × Win Rate × Avg Deal Size) ÷ Sales Cycle Length
This tells you how much revenue flows through your pipeline per day.
Customer Metrics
Post-sale metrics complete the picture:
- CAC: Customer Acquisition Cost
- LTV: Lifetime Value
- LTV:CAC ratio: Target 3:1 or higher
- Payback period: Months to recover CAC
- NRR: Net Revenue Retention
- Churn rate: Monthly/annual customer loss
Cohort Analysis
The most powerful RevOps technique: analyze by cohort.
What is a Cohort?
A group of leads/customers who share a common characteristic (usually time-based).
Example: Monthly Lead Cohorts
Track January leads through their journey:
- January: 1,000 leads created
- February: 300 became MQL (30%)
- March: 100 became SQL (33%)
- April: 50 became Opportunity (50%)
- May: 15 became Customer (30%)
Overall conversion: 1.5% Lead → Customer
Finding Bottlenecks
Use metrics to identify problems:
Low MQL → SQL Conversion
- Lead quality issue (ICP/scoring)
- Slow follow-up (SLA not met)
- Misaligned messaging
Long Time in Stage
- Missing required info
- Unclear next steps
- Rep capacity issue
Low Win Rate
- Poor qualification
- Competitive pressure
- Pricing issues
Funnel Metrics Checklist
- ☑️ Funnel stages defined with clear criteria
- ☑️ Stage-to-stage conversion tracked
- ☑️ Velocity metrics measured
- ☑️ Pipeline coverage monitored
- ☑️ Post-sale metrics included
- ☑️ Cohort analysis implemented
- ☑️ Regular funnel reviews scheduled