Funnel velocity in marketing is all about how quickly your prospects can travel down the marketing funnel and transform into a successful conversion.
How to Measure Funnel Velocity
How do we measure the funnel velocity? It’s simple. Let’s break it down.
- Identify Your Stages: Each twist and turn of your funnel represents a stage. It could be Awareness, Consideration, Decision, and so on.
- Time Frame: The time it takes for a prospect to move from one stage to the next is vital. If you’re measuring monthly, calculate how many days a prospect spends in each stage.
- Calculate: Divide the total number of days by the number of prospects that moved from one stage to the next. This gives you the average time spent in each stage.
- Final Velocity: To find the overall funnel velocity, add up the average time spent in each stage. The shorter this time, the faster your funnel velocity.
Funnel velocity gives you a clear picture of your sales process efficiency. It’s like a stopwatch for your marketing strategy.
A Quick Example
Let’s say we have 100 prospects at the start of a month. By the end of the month, 50 have become customers. If it took 30 days for this journey, then the average time spent in the funnel by each prospect is 30 days. This is your funnel velocity. Your goal? To find ways to shorten this journey, making your funnel more efficient, faster, and more effective.
The higher your funnel velocity, the more refined and effective your marketing strategy is.