What are the benchmark stats for Lead-to-demo, demo-to-close conversion rates?

Hey guys

What are some benchmarks for outbound sales these days?

Especially interested to see:
1. Outreach to demos booked
2. Demos booked to closed deals

Thanks!

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    • Profile picture of Katie Ray
      @katie_ray
      ( 8.6k POINTS )
      1 week, 3 days ago

      Hey Mark! Great question!
      I have seen some older ideas around this ranging from 100 calls a day, which should lead to 3-5 appointments set. I think it really depends on how tenured your reps are or are not. If they’re less experienced, you wont have such great numbers. Sometimes there are days when they may not get anything and others where they have a lot of success! It also depends on your business. Are you more transactional (SMB) or more relational (MM-Enterprise)? If more transactional, you could get to one call closes. If you get 2-4 one call closes, don’t measure the amount of calls. It really depends.
      @mham– can you give a little more insight in to what you’re focused on?

      • Profile picture of Mark
        @mham
        ( 610 POINTS )
        1 week, 2 days ago

        Hi @katie_ray, we’re a service (not saas) selling to SMBs with $10k per year deals. But we don’t do one-call closes because the industry (healthcare) we reach out to is absolutely slammed with outreach that attempts that.

    • Profile picture of MaryAnne MacDonald
      @maryanne
      ( 210 POINTS )
      1 week, 2 days ago

      This is a great question I’m wrestling with atm… would love to hear more on this.

    • Profile picture of Kristen Holmes
      @krisholm
      ( 800 POINTS )
      1 week, 2 days ago

      Depends on the org – I prefer high-quality over quantity – 20-30 daily touches maybe even 5-10 if they are customized and intentional.

    • Outbound Sales (I’ll assume this is enterprise, as getting an SMB Cold outbound motion is almost impossible in 2021).
      I would look more at Account to Demo, in the following way. Assign 100 Accounts to your SDR. Wait 1-2 months. Once they have put every Account through the sequence and worked them fully,m check how many demos they got. Anything over 5% you’re doing well. Over 10% You’re amazing.
      On a Lead to Demo ratio, assume you have ~5 leads per account. So a 1% is great. 2% is awesome!

      Demos booked to closed deals. Average in the industry for Outbound is th the 8% range. This is for companies that have a dedicated outbound motion and know how to run it. I’ve seen it all from less than 1% (Team got shut down later, not surprising), to 27% (company got acquired later at a HUGE valuation).

      I Think at 5% you’re fine, at 10% you’re amazing at 15% you’re a genius. Considering this for a $100K ACV outbound motion for context.

      Hope this helps. I have tons of articles on Sales Hacker where you can learn more.

      • Profile picture of Mark
        @mham
        ( 610 POINTS )
        1 week, 2 days ago

        Thanks @tito-bohrt, that makes sense. We’re at 8% lead to demo.

        The demo to close, are you saying 10% is amazing if, say, there’s 1 close out of every 10 demos?

        • Correct. I’ve seen in crazy SMB companies (Sharefile.com) where they optimized it fully, they were getting 27% of intro meetings into Closed Won.
          In Enterprise ($100K ACV) at 10% you’re amazing. It’s contextual, depends on your product and market a lot.

      • Profile picture of Silvan Gehmann
        @sdu
        ( 340 POINTS )
        1 week, 2 days ago

        totally agree with @tito-bohrt One thing to ad regarding demo to won ratio: it really depends heavily on the Segment you’re selling to. Bigger Accounts have a way more complicated procurement process then SMB for example. So Deal Cycle will be longer but the conversion rate more or less the same (maybe slightly less). I do not believe that the deal size matters from 25k+ regarding conversion rates.

    • There are a few additional metrics that will throw off your booked to close rate:

      Meeting show rate. This varies widely across industries. When I sold into HR, for example, it was unheard of for someone to miss a meeting. When I sold into doctors offices, the going standard was 50% show rate, which we got up to 65% for outbound.

      It will depend on if your meetings are set by the AE themselves or SDRs. If the two sides of the org don’t work seamlessly (which is pretty common), SDR set meetings often close at a lower rate. AEs and SDRs really have to be on the same page in terms of meeting standars and trust each other.

    • Hi Mark. Every situation is different, and everyone with that situation has different skills. The best way to know is to track your activities. Then, once you know your starting numbers as a bench mark, work at improving each process within it.

      If you see someone with better outreach to demos ratio, start to learn what they are doing differently and copy the process. If someone else has a higher booked to closed deals ratio, learn and copy what they are doing. This way, the whole team improves.

      As the old saying goes, not doing more than the average is what keeps the average low.

    • Hey @mham – great question. A couple of metrics and considerations for you.

      – Per @katie_ray, SMB vs. Mid-Market vs. Enterprise is going to predicate success a fair amount

      – Maturity of your company and brand awareness may impact the “outreach to demos booked”. In “Fanatical Prospecting by Jeb Blount, a company with zero brand awareness may require 20-50 total touches/company in order to book a disco meeting or a demo. With some brand awareness and traction, you can go from 5-20 pretty quickly.

      – With some inbound in play for us lately, we lessened our “Avg Touches per Meeting” from 160 to 100, which made a big impact. Marketing driving leads played a big role.

      – Close rate ~20-30% is usually a good benchmark, depending on your volume and length of sales cycle.

      – Jason Bay has some great stuff on this and some good metrics from an outbound standpoint. If you have low conversion rate to meeting, he recommends:

      **At the end of the day, this is the most important metric. Conversion rates should be 3-6% of total prospects contacted at a minimum.

      **Make the CTA clear. Try being very specific with the day and time for a call.

      **If a prospect responds “not interested” pick up the phone and call them. You’ll get a ton of useful feedback to improve your messaging.

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