A couple of weeks ago I asked for your thoughts.  “What is the most important component of your Sales Funnel?”  The options were, number of customers/enquiries, acquisition to enquiry times or conversion rates. 

I am surprised but it was pretty even between all three options.  Let’s look at each option individually.

Number of customers or enquiries

No business can survive without either.  This is true and normally the higher the number the better the company performs.  Additionally, this number will be a key factor in identifying staffing requirements and determining lead times.  BUT……. what is the point of a high number of enquiries or customers if it does not lead to a high number of orders?

Acquisition to enquiry times

Like a high number of orders/enquiries, having a fast time frame between introducing a customer to an enquiry is great.  This can highlight that your offer is attractive and customers have a need or want for your product or service.  BUT…… what if these enquiries don’t lead to orders.  Is you pricing not demonstrating sufficient value, or is the initial interest not being equalled by the follow up. 

Conversion rate

Conversion rates can take into account many different factors that could include the two above.  It is a percentage reflection of how enquiries are being received and ultimately how many turn into orders.  Unlike the two above, I would argue that, conversion rate is the only measure that add $ to a business. 

Happy for anyone to disagree. 

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