Benchmark: B2B Outbound Sales Funnel
In B2B sales, especially in tech, SaaS, and professional services sectors, a clear understanding of the outbound sales funnel is important. Many companies that enter this space hold misconceptions about what this process entails and what metrics are most critical to their success.
In this article, we try to demystify outbound sales by outlining the typical Key Performance Indicators (KPIs) and demonstrate what an average sales funnel might look like, using an example of 100 initial deals.
What is Outbound Sales?
Outbound sales is a process where a sales team actively reaches out to potential customers through cold calls, emails, and other outreach methods.
Key Performance Indicators (KPIs)
Analyzing and tracking the right KPIs is a must in outbound sales. Here are some of the most important KPIs:
Lead Response Time: How fast your sales expert responds to potential customers. Faster responses can increase the conversion rate.
Conversion Rate: The percentage of leads that convert to deals in the sales funnel.
Average Deal Size: Average revenue expected per deal.
Sales Cycle Length: The average time it takes to close a deal.
ROI: Return on investment from all sales activities.
These metrics can help measure efficiency, effectiveness, and overall sales performance.
Outbound Sales Funnel
Here’s an example of a typical outbound sales funnel starting with 100 potential deals:
Stage 1: Lead Generation
This stage involves identifying potential leads or prospects. Let’s assume that out of 100 prospects, only 75 fit your ideal customer profile (ICP) and are worth reaching out to.
Conversion Rate: 75%
Stage 2: First Outreach
In this stage, the Sales Expert reaches out to these 75 qualified leads through cold calls, emails, or social media.
Conversion Rate to next stage: 50%, meaning 38 leads continue to the next stage.
Stage 3: Lead Qualification
Sales Expert qualifies these 38 leads to determine if they have a genuine interest or need for your product or service.
Conversion Rate to next stage: 60%, meaning 23 leads are considered qualified opportunities.
Stage 4: Proposal Sent
A proposal is sent to these 23 qualified leads, explaining the product or service benefits tailored to their specific needs.
Conversion Rate to next stage: 45%, meaning 10 leads show interest in discussing terms or a demo.
Stage 5: Negotiation
The Sales Expert negotiates with these 10 potential clients to finalize deal terms, pricing, and implementation.
Conversion Rate to closed deals: 50% meaning 5 deals are successfully closed. 🎉
Stage 6: Won Deals
From the initial 100 leads, the funnel narrows down to closing 5 deals.
Overall Conversion Rate: 5%
What This Means for Your Business
Understanding these metrics allows sales teams to notice bottlenecks, optimize processes, and forecast results more accurately.
For instance, if a company's conversion rate from lead qualification to sending proposals is lower than industry standards, it may indicate the need to review their qualification criteria or the proficiency and strategy of their sales team at this stage.
Elaborate your sales strategy based on KPIs
By mastering these KPIs and the outbound sales funnel, tech, SaaS, and professional service companies can refine their sales strategies, enhance efficiency, and boost their conversion rates. Remember, every company is unique, and these figures can vary based on industry, market conditions, and the effectiveness of your sales team. Constant review and adjustment of strategies based on these KPIs are essential for sustained growth and success in outbound sales.
