15 Sales Funnel Metrics & KPIs to Measure Performance

by The MNTN Team

8 Min Read

Tracking the right funnel metrics is vital when optimizing your sales funnel. These marketing metrics and key performance indicators (KPIs) clearly show how well your funnel works and where improvements are needed.

But what are funnel metrics, and which ones matter?

What Are Sales Funnel KPIs?

Sales funnel KPIs are measurable values that help you assess the effectiveness of your sales funnel at every stage, from brand awareness to customer retention.

These metrics provide insights into how your leads are moving through the funnel while also highlighting any areas where you can improve your strategy.

Importance of Tracking Sales Funnel Metrics

Sales funnel metrics allow you to make data-driven decisions by helping you identify what’s working and what needs optimization. By keeping an eye on these numbers, you can improve your lead generation, boost your conversion rates, and lower your customer acquisition cost (CAC).

On that note, here are 15 key funnel metrics you should be tracking:

1. Brand Awareness

Brand awareness is how well people know your brand and understand its value proposition. Generating awareness is the first stage of the sales funnel.

How Is Brand Awareness Measured?

Measuring brand awareness requires a multifaceted approach that incorporates things like customer surveys and other qualitative data-gathering efforts. Social listening platforms and tools like Google Trends can provide a glimpse into brand awareness, as well.

2. Net Promoter Score (NPS)

Your brand’s net promoter score (NPS) provides insights into customer sentiments and your company’s potential for growth by measuring the likelihood that someone will recommend its products to other consumers.

How Is NPS Measured?

NPS is measured through a simple survey in which customers are asked to rate the likelihood of recommending your business to others using a scale of 0 to 10. You’ll categorize respondents into one of three categories based on their ratings:

Promoters (9-10)
Passives (7-8)
Detractors (0-6)

You’ll then use the following formula:

NPS = % Promoters – % Detractors

As an example, if 50% of your respondents are promoters, 30% are detractors, and 20% are passive, your NPS would be 20% (50% – 30%). Passives are omitted from NPS calculations, as they neither help nor hinder your business.

3. Click-Through Rate (CTR)

Your click-through rate (CTR) tracks the percentage of people who click on your link or ad compared to the number of people who see it. It indicates how good you are at generating intrigue with your ads.

How Is CTR Calculated?

You’ll calculate CTR with the following formula:

CTR = (Clicks / Impressions) x 100

For instance, say that you run an email campaign that 1,000 people view and 100 recipients click on the link you sent them. Your CTR would be 10%.

4. Cost-Per-Click (CPC)

Cost-per-click (CPC) tracks how much money you spend to earn a click on an ad. It helps understand the efficiency of your advertising campaigns by comparing spending to user engagement.

How Is CPC Calculated?

The formula for cost-per-click is shown below:

CPC = Total Cost / Number of Clicks

Suppose that you spend $500 on a campaign that generates 1,000 clicks. Your CPC would be $0.50.

5. Conversion Rate (CVR)

Your conversion rate (CVR) measures the percentage of people who complete a desired action. In the case of sales funnel metrics, that action would usually take the form of a completed purchase or signing up for a paid subscription.

How Is CVR Calculated?

You can calculate your CVR with the following equation:

CVR = (Conversions / Total Visitors) x 100

In a scenario where your site has 10,000 visitors over a month, and 250 make a purchase, your CVR would be 2.5%.

6. Return on Investment (ROI)

Return on investment (ROI) evaluates the profitability of your investment by comparing gains with how much you spend. It helps you determine whether your advertising and marketing efforts are efficient.

How Is ROI Calculated?

You can calculate your ROI with this formula:

ROI = (Net Profit / Cost of Investment) x 100

Therefore, if you were to invest $3,000 in a marketing campaign that generates $4,500 in net profit, your ROI would be 50%.

7. Return on Ad Spend (ROAS)

Return on ad spend (ROAS) gauges how much revenue you earn for every dollar spent on ads. It helps determine whether you are using your marketing dollars wisely or need to adjust your strategy.

How Is ROAS Calculated?

Calculating your ROAS is as simple as using the following formula:

ROAS = Revenue From Ads / Cost of Ads

As an example, if you spend $10,000 on a Connected TV (CTV) ad campaign and earn $50,000 from it, your ROAS would show that you average $5 in revenue for every dollar spent.

8. Cost Per Acquisition (CPA)

Cost per acquisition (CPA) counts the cost of acquiring a new customer, thereby helping you identify whether you are efficiently attracting new leads.

How Is CPA Calculated?

To calculate your CPA, use this formula:

CPA = Total Marketing Cost / Number of New Customers

If you spend $5,000 on a campaign and acquire 100 new customers, your CPA would be $50.

9. Customer Acquisition Cost (CAC)

Customer acquisition cost (CAC) is similar to CPA, except that it accounts for additional expenses related to sales and other activities designed to attract new customers.

How Is CAC Calculated?

CAC is calculated with this formula:

CAC = Total Sales & Marketing Expenses / Number of New Customers

Let’s say your total costs were $10,000, and you acquired 100 new customers. Your CAC would be $100.

10. Customer Lifetime Value (CLV)

Customer lifetime value (CLV) determines how much revenue you will earn from a single person during their relationship with your business. It is a metric that helps companies to understand the long-term worth of each client.

How Is CLV Calculated?

To calculate CLV, you’ll need to know the purchase frequency, the average purchase value, and how long a customer does business with your company. With that information in tow, you’ll plug it into the following formula:

CLV = Average Customer Lifespan x Average Customer Value

Let’s say that a customer spends $100 per purchase on average and makes four purchases annually. They remain loyal to your brand for three years. In that case, their CLV would be $1200.

11. Cost Per Lead (CPL)

Your cost per lead (CPL) tracks how much you spend to get someone into your sales funnel. It helps you determine whether your company is efficiently acquiring prospective customers.

How Is CPL Calculated?

The formula for calculating your CPL is simple:

CPL = Total Marketing Cost / Number of Leads

If you spend $2,000 on a marketing campaign and generate 100 leads, your CPL would be $20.

12. Marketing Qualified Lead (MQL)

A marketing qualified lead (MQL) is an individual who has shown interest in your products and is thus more likely to become a customer.

How Are MQLs Calculated?

Calculating MQLs can be tricky. You need to identify qualification criteria and analyze leads to determine who meets the threshold for an MQL.

13. Sales Qualified Lead (SQL)

Sales qualified leads (SQLs) are even more valuable than MQLs, as they are deep in the sales funnel and primed to make a purchase.

How Are SQLs Calculated?

To identify your SQLs, you’ll need to evaluate your MQLs against sales criteria like need and timeline to make a purchase. Your sales team will assess these factors throughout the customer journey.

14. Sales Accepted Lead (SAL)

A sales accepted lead (SAL) is a lead that your sales team has identified as being ready for direct (and highly personalized) targeting. These leads have a high likelihood of converting but haven’t quite reached the threshold of an SQL.

How Is SAL Calculated?

Your sales team will calculate the number of SALs by reviewing MQLs and identifying promising leads as ready for additional engagement.

15. Customer Retention Rate

Your customer retention rate measures how many people your company retains over a specified period. It reflects your ability to keep customers.

How Is Customer Retention Rate Calculated?

The formula to calculate customer retention is as follows:

Customer Retention Rate = [(End Customers – New Customers) / Start Customers] x 100

If your company starts a period with 2,000 customers, gains 400 customers, and then ends the period with 2,200 customers, your retention rate is 90%.

Performance Marketing Metrics for Connected TV

If you need better insights into the efficacy of your CTV advertising campaigns, MNTN Performance TV can help. Our platform allows you to create self-managed CTV campaigns, engage in precise targeting, and measure every KPI relevant to sales success.

Explore MNTN today. Request a demo to get started.

Sales Funnel Metrics & KPIs: Final Thoughts

Tracking the right sales funnel metrics is crucial to obtaining a complete picture of your sales funnel and customer journey. Consider leveraging MNTN Performance TV to automate and optimize your funnel across the full customer journey.