Metric for Sales Funnel: How to Measure Success

By Stephen Paul Samynathan on September 18, 2022

Do you want to know how many visitors convert into customers? What percentage of sales comes from each stage of the funnel?

In order to maximize conversions and amplify your sales funnel success, you must understand what to measure and what those measurements mean. This will help you optimize your website and landing pages and identify areas that need improvement.

1. Leads

Leads are the lifeblood of any sales team. They represent a prospect that wants to buy something, and they enter the sales funnel via several stages.

The most important thing about leads is that they are the reason for the entire sales funnel. Without leads, there is no conversion, and without conversions, there is no revenue.

In fact, lead generation is the key driver of revenue growth for many B2C companies. And while the volume of leads entering a sales funnel is relatively easy to measure — and therefore easier to manage — a deeper analysis of leads provides much richer information.

This includes:

• Lead stage at the entry point

• How long it takes them to move through each stage

• The number of times they visit each page in the sales funnel

• What actions do they take on each page

• Whether or not they convert into a sale

• Which marketing channels do they use to find you

• Their demographics

• Their interests

• Their pain points

2. Conversion Rate

Conversion rate is one of the most important metrics in digital marketing because it represents how effective your efforts are at moving people from being interested in your product or service to becoming customers.

It’s also an indicator of whether your content resonates with your audience. If you have a high conversion rate, then you know that your content is working. But if you don’t, then you can make changes to improve your content strategy.

Examine the sales funnel to see where you are losing a lot of potential customers

From there, see if there are any steps that can be taken to improve the conversion rate at that stage.

3. Acquisition Costs

One of the important metrics to measure in the sales funnel is customer acquisition costs
One of the important metrics to measure in the sales funnel is customer acquisition costs

The amount of money that is spent to get a new customer is known as acquisition costs. For example, acquisition cost can be defined as the total budget spent by a company to acquire a single customer.

It includes all expenses related to getting someone to become a paying customer, including advertising, direct mail, events, and other marketing activities.

The higher your acquisition costs, the less profit you could potentially be making.

In order, to maximise profit, we would need to analyse the funnel and see where are we spending most of our cost and where are the sales funnel losing the most potential conversion.

4. Customer Lifetime Value

Customer lifetime value (LTV) measures the average amount of money a customer is worth over their lifetime. It’s calculated by multiplying the average purchase price per customer by the expected time between purchases.

For example, if a customer spends $100 on your products during his first year with you, and he buys again every year after that, then his LTV would be 100 x 12 $1,200.

5. Total Sales

Total sales is simply the sum of all revenues generated by a business.

Well, this is the simplest metric but also the most important metric to be measured.

As business owners, all of our marketing and sales effort is focused on this.

Getting sales.

The more sales that our sales funnel generates the better the funnel is working.

The more revenue it brings to our business, the better the funnel is working.

It really is as simple as that.

6. Cycle Time


No, not that cycle

Cycle time here refers to the length of time it takes for a visitor to complete a specific action within your site.

The sales funnel is all about moving potential customers from one stage to another stage.

And if potential customers are taking a long time at one specific stage that calls for optimisation of that stage

The longer it takes a potential customer to love to the next stage, the higher the chance that we might lose that sale

hence we need to measure how long they are taking at each stage and try to reduce to an optimal level to ensure we can get those sales

7. Average Order Value

The average order value is the average dollar amount of a transaction completed by a customer.

You have spent a lot of money on the acquisition of new customers, so why not try to make the most of it by trying to get the same customers to buy more from you?

Here are a few ways you can accomplish that:

1. Trying to move them in a funnel that is targeted at return customers

2. Giving them a coupon for a second purchase

3. Upselling an addon

4. Cross-selling a similar product

While all these are great strategies, we need to use them in moderation

Overusing any of these or trying to use all of these at once will potentially lead to us losing the sale altogether


In conclusion, knowing what to measure is very important to measure and check if you are on the right track to success.

In today’s world, where everyone wants to get the best way to convert leads, it seems like a lot of businesses struggle to find affordable web designers in Malaysia. But don't worry; here at Specflux Solutions, we understand how important it is to have a well-designed website that works as your 24/7 marketing staff.

So regardless of whether you're starting up your business or already running one, let us help you build a beautiful and functional website that doesn't break the bank.

We offer quality website design in Malaysia. Save your time and concentrate on your business. We will help with your web design. Specflux is the trusted provider for web design Malaysia.

Article written by Stephen Paul Samynathan
Co-founder of Specflux Solution, he builds IT products that work. He is also running Ipoh based website design agency with his partner. If not working on client's project, he's a part of a vibrant IT community in Ipoh locally known as Digital Perak.

Leave a Reply

Your email address will not be published. Required fields are marked *

Related Posts