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The sales funnel also called the sales pipeline,
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tracks the number of incoming leads or prospects.
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These are leads that a sales team member has
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identified as being potentially interested in the product.
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Then, the sales team member follows up for an interested lead to
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ask more about what they're looking for, possibly making presentations.
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Here, you track metrics like number of sales leads.
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This is followed by a qualifying process whereas the sales team qualifies the leads.
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Checks to see if the product offering is within the leads budget,
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a sort of vetting,
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to identify the ideal buyer and confirm their viable lead.
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Here, you track metrics like ratio of qualified leads to sales leads.
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Once the sales team has a qualified lead,
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you end with a closed deal or booking.
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At this stage, you can also have a lead on hold or last.
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Here, you track metrics like bookings,
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close ratio, and average size of deal in pipeline.
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Bookings is a very important metric for tracking the success of the sales team.
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Close ratio is the ratio of closed deals to leads,
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you had in the sales pipeline.
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As you may have noticed,
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sales metrics are measuring the performance of the sales team internal to the company.
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As oppose to tracking the behavior of individual customers in the marketing metrics.
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For this lesson, we will cover the metrics at the bottom of the funnel.
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But we have provided links and resources
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below for you to learn more about the others if you're interested.
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