How to Calculate Stage Conversion Rate
Stage Conversion Rate measures the percentage of opportunities or deals that move from one stage to the next. For example if a rep made had 100 opportunities that moved to Stage 1 in the sales process, and 75 of those moved to Stage 2, then the Stage Conversion Rate for Stage 1 to Stage 2 would be 75%.
To measure Stage Conversion Rate with Salesforce data,
you need to use both Opportunity and Opportunity History data. For each Opportunity, you want to determine all of the stages it's made it to, which will be indicated by an Opportunity History record existing in the stage in question. Meaning, if you are trying to see whether an opp has made it to Stage 2, then there should be an Opportunity History record in Stage 2 for that opp. You need to track how many opps have made it to each stage. Then you can divide the number of opps in the downstream stage, by the number of opps that made it to the initial stage (ie, Stage 2 opps divided by Stage 1 opps). Generally, you want to cohort all of this by the Opportunity Created Date. So, for all the opps that were created in a particular time period, you would divide the number of those that made it to Stage 2, by the ones that made it to Stage 1.
To measure Stage Conversion Rate with HubSpot CRM data,
you need to use data from the Deal object with DealStage History data. For each Deal, you want to determine all of the stages it's made it to, which will be indicated in the DealStage History. Meaning, if you are trying to see whether a deal has made it to Stage 2, then there will be an entry in the DealStage History table for Stage 2 for that deal. You need to track how many deals have made it to each stage. Then you can divide the number of deals in the downstream stage, by the number of deals that made it to the initial stage (ie, Stage 2 opps divided by Stage 1 opps). Generally, you want to cohort all of this by the Deal Created Date. So, for all the deals that were created in a particular time period, you would divide the number of those that made it to Stage 2, by the ones that made it to Stage 1.
Rekener can calculate Stage Conversion Rates automatically
Rekener's Sales Rep Scorecards automates stage conversion rate calculations. Sales Rep Scorecards provide sales stage funnels for every one of your reps, and can also be viewed by team or by role.
Sales funnels in Sales Rep Scorecards make it easy to identify bottlenecks in your sales process. You can also compare stage conversion rates from rep to rep, so that you can provide better coaching to reps on where in the sales process they need help.
Want to see your stage conversion rates? Try it out for free!
Check out our Sales Rep Scorecard app to see how Rekener can track Stage Conversion Rate by sales rep automatically. Rekener calculates the conversion rate from stage to stage for all of your stages, as well as stage to close for all your stages.
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Greg is COO and Co-Founder at Rekener. Greg’s career has been focused on using data to grow recurring revenue businesses. Before joining Rekener, he served as VP of Operations at ZeroTurnaround, where he built its strategy and operations practice, ran its customer success and renewals function, helped to grow and coach its high-velocity sales organization, and optimize its marketing efforts. Prior to that, he ran the BizOps and marketing functions for the AVOKE call center analytics business, a SaaS company within BBN Technologies. He got his start using data to improve sales and marketing efforts while at AppNeta.
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