Jun 29, 20219:15 AM - edited Aug 12, 202111:06 AM
Key Advisor | Diamond Partner
How do I create an SLA when I don’t know conversion rates?
Not all of us have access to a complete data set to be able to calculate our conversion rates to set an SLA between marketing and sales. Join the discussion to get advice on how to create your SLA based on industry estimates.
How do I create an SLA when I don’t know conversion rates?
I am working to calculate historical sales data that has not been logged properly in my CRM, but it seems possible if I am able to identify sales velocity by number of opportunities x win rate x average deal value / sales cycle length.
How do I create an SLA when I don’t know conversion rates?
I am managing my sales and marketing in my job search and personal branding outreach efforts, so I am glad you posed this question.
I should create benchmarks and goals based on specific objectives, resources, and timelines. I am currently setting goals and expectations for myself but am not measuring them against KPIs or particular goals or objectives.
When I have a method and platform to perform them, the KPIs I will use will include lead generation, sales conversion rates, content creation and distribution, and social media engagement metrics.
I will likely need premium accounts to track this and take training courses to learn how to do it and how it works. Regarding KPIs relevant to my sales and marketing efforts, I am currently using a temperature check when speaking with someone based on their engagement and how long I can keep them on the phone or video using objectivity and active listening.
How do I create an SLA when I don’t know conversion rates?
As per my understanding, customer persona and consumer data are key assets when dealing with service level agreements to reach a desired conversion percentage based on leads created by the marketing department! For example, a website with tracking cookies may be able to track consumer behavior on the website itself to see the percentage of customers interested in particular product or service based on CTA clicks and pages visited! Eventually, one should be able to create a SLA based on consumer data without knowing the conversion rates! This way the marketing department will create appropriate number of leads that the sales department can use for conversion!
How do I create an SLA when I don’t know conversion rates?
Without a clear conversion rate or ratios, starting with estimates can be difficult. Consider these stages: Website visitors to qualified leads, leads to sales opportunities, and Opportunities to wins. Each of these has a conversation percentage to calculate and also creates a marketing and sales accountability funnel, starting with a target number of website leads to how many were converted into closed revenues.
It’s fair to get estimates from industry standards, but these standards may not give you a good baseline as your company (sales people, campaigns, content, marketing systems, etc.) will certainly differ from industry standard.
Historical data on conversion rates per stage is ideal, but if this is unavailable, then industry standards can be a guide. But be cautious - if your company deviates from the industry standard, again those standard rates might not apply.
In such cases, waiting 4-6 months to gather actual conversion data is a wise approach. Once you have some data to work with then rollover those percentages or rations each month to take the averages and get your SLAs working after the 6-month period. This concept is similar to a zero-based budgeting in finance, as this allows marketing to build calculations from scratch and then refine them based on ongoing performance.
How do I create an SLA when I don’t know conversion rates?
Industry estimates are a good place to start but, as you build you data set, use that to tweak estimates based on your product lines, customers, and then eventually conversion rates.
How do I create an SLA when I don’t know conversion rates?
The best solution would be to involve key players and generate best guesses which should be as accurate as possible. This would be a good starting place to evaluate performance before moving forward.
How do I create an SLA when I don’t know conversion rates?
I would first do a one-time clean-up of the data look at all the closes that are available and make the best estimates on how they closed - align this with market averages/management expectations on the closing rate. Next and equally as important infrastructure and tracking must then be put in place to track this e.g. spreadsheet, CRM....
How do I create an SLA when I don’t know conversion rates?
It sounds like the best thing to do is come up with some guesses around the ideal patterns and lead value, put in the infrastructure, and start measuring. This way you can iterate toward something more sophisticated
How do I create an SLA when I don’t know conversion rates?
I typically begin with an initial educated guess based on my experience and keep the SLA flexible until we have established and stabilized conversion rates.