**Fill out the form to get instant access to the Sales Funnel.** You’ll be ready to begin experimenting with different close rates, average contract values, and activity numbers to see what’s right for your business, team, and individual goals.

# Analyze your Sales FunnelActivities lead to success down the sales funnel

Sales leaders, RevOps, and individual contributors can use this free tool to holistically analyze their sales funnel. Activities lead to opportunities, opportunities lead to revenue — see the complete picture.

## See how each of your sales ratios interact in our Sales Funnel

- To use this tool, you’ll need to know a little bit about your organization’s sales ratios. If you don’t know these exact numbers, you can approximate them and hone in on the right answers that way.
**An FAQ below includes definitions of each field, and how to calculate them.** - Once you have some data about your company (or just yourself/your team!), enter that info into the right side of the funnel.
- From there, you will need to decide what you’d like to figure out. Do you want to know the
**number of meetings**your team needs to set in order to hit quota? Start with the “Revenue” field. Want to know how many activities you’ll need to run in order to generate 20**qualified opportunities**? Start with “Qualified opps.” - Remember that every field you modify will impact all the numbers above and below it on the funnel (if applicable).

### Frequently asked questions when using the Sales Funnel

Ready for this? You can edit ANY of the numbers/percentages on the funnel and all the other ones will adjust accordingly. Pretty sweet, right?

Qualification rate is the percentage of meetings that turn into “qualified opportunities.” You can define this however you like, but unless you’re the world’s best seller, it’s likely that not 100% of your meetings are qualified.

Qualified close rate is the percentage of qualified opportunities that turn into closed deals. Much like the qualification rate, this entirely depends on how you define qualified opportunities, but this is likely to be under 100%.

ACV stands for average contract value. Sometimes called ASP, or average sales price, this is how much your average deal closes for. This allows you to see how many deals you will need to close in order to hit a certain revenue target.

Activities can be defined however you like. Many organizations use emails and calls as activities, but some only count calls, while others include meetings in that number. It’s up to you how you want to define it.

That’s fine! You can actually edit the terminology if you’d like by clicking the words next to the funnel. Also, it’s more about the ratios themselves than the exact terminology.

Well first off, that might be too many stages… Second of all, we didn’t want to overwhelm you with too many different stages, so try to focus on the two different stage changes that are most impactful for you. We have “Qualification rate” and “Qualified close rate” here, but you can use ‘Demo show rate’ or ‘Trial to close’ if that’s what’s best for your business.

### Calculate a Quota:OTE Ratio

For additional resources, check out our Quota:OTE Ratio Calculator to help in calculating realistic and impactful on-target earnings.

To learn how QuotaPath can automate commission tracking and sales compensation management, schedule a time to meet our team!

## Connect activities to Revenue with the Sales Funnel

### How do I find each of these ratios for myself?

We have four important numbers on the righthand side of the sales funnel. If you don’t know these off the top of your head, that’s fine! We’ll show you below how to calculate each of them.

Keep in mind, if you’re using this funnel in an aspirational way, you can use any numbers you’d like in order to see whether your estimates will achieve the goals you’re setting.

#### Activities per meeting

*Number of Activities ÷ Number of Meetings*

In order to calculate activities per meeting you’ll first need to determine what will qualify as an activity. Start with the number of calls and emails over a certain period of time (say, the past 90 days). You can always modify it from there. Then, you’ll need to find the number of meetings in the same time period.

Once you have both of those numbers, divide the number of activies by the number of meetings. This should give you a number above 1. If it’s below 1 you probably did the wrong numerator/denominator (sorry, I know you weren’t expecting to go back to high school math here).

#### Qualification rate

*Number of Qualified Opportunities ÷ Number of Meetings*

Good news, you already have half this equation already! Now, you’ll find the number of qualified opportunities that resulted from those meetings. There are a few different potential nuances to this number. If you want to get fancy, you can count only the closed (both won and lost) opportunities in both of these numbers. But if you want to go simple, just divide the number of qualified opportunities by the number of meetings. This should be a number between 0 and 1, which is your percentage. So if you had 68 qualified opps and 92 meetings, that would be .739 or 73.9%.

#### Qualified close rate

*Number of Closed Won Deals ÷ Number of Qualified Opportunities*

Notice a pattern here? Now we want to find the number of deals you won during that same period in order to find your qualified close rate. Take that number and divide it by the number of qualified opps you got above. Bingo, there’s your qualified close rate! In our example, if you had 30 closed won opps from your 68 qualified, you would have a .441 – or 44.1% – qualified close rate.

#### ACV

*Revenue ÷ Number of Closed Won Deals*

Okay, so for ACV, or average contract value, you will want to take the amount of revenue generated by those closed contracts and divide it by the number of closed deals. As an example, say you closed $585,000 of revenue from your 30 deals. That would mean your ACV is $19,500. Boom, just like that you have all the numbers you need to get going!