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Steady-State Inverted Demandgen Funnel

2,000,000 Quarterly new ARR target


75,000 Average sales price (in ARR$)
27 Closed oppties per quarter
20% SQL to close rate
133 SQLs (i.e., oppties) needed per quarter
80% Percent of opportunities sourced from marketing
107 Oppties needed from marketing per quarter
2.5 Oppties per inbound BDR per week
4 Number of inbound BDRs needed (rounded up)
80% SAL to SQL conversion rate
133 SALs needed per quarter
10% MQL to SAL conversion rate
1,333 MQLs needed per quarter
250 Cost/MQL
$ 333,333 Demandgen budget needed per quarter

10,000,000 Pipeline generated per quarter


30 Pipe/spend ratio

Driver cells

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$ 1,333,333.33
Steady-State Inverted Demandgen Funnel With Historical and Benchmark Data

2020 Budget 2019 Actual Benchmark


2,000,000 2,000,000 2,000,000
75,000 70,000 70,000
27 29 29
20% 18% 25%
133 159 114
80% 70% 70%
107 111 80
2.5 2.5 2.5
4 4 3
80% 80% 80%
133 139 100
10% 10% 12%
1,333 1,389 833
250 275 325
$ 333,333 381,944 270,833
13% -23%

10,000,000 11,111,111 8,000,000


30 29 30

Driver cells

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Historical and Benchmark Data

Quarterly new ARR target


Average sales price (in ARR$)
Closed oppties per quarter
SQL to close rate
SQLs (i.e., oppties) needed per quarter
Percent of opportunities sourced from marketing
Oppties needed from marketing per quarter
Oppties per inbound BDR per week
Number of inbound BDRs needed (rounded up)
SAL to SQL conversion rate
SALs needed per quarter
MQL to SAL conversion rate
MQLs needed per quarter
Cost/MQL
Demandgen budget needed per quarter
2020 budget efficiency improvement

Pipeline generated per quarter


Pipe/spend ratio

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Phase-Shifted Inverted Demandgen Funnel

Proposed Plan
1Q20 2Q20 3Q20
Quarterly new ARR target 1,250,000 1,500,000 1,800,000
Average sales price (in ARR$)
Closed oppties per quarter
SQL to close rate
SQLs (i.e., oppties) needed, two quarters earlier 133 125
Percent of opportunities sourced from marketing 80% 80%
Oppties needed from marketing 107 100
Oppties per inbound BDR per week 2.5 2.5
Number of inbound BDRs needed (rounded up) 4 4
SAL to SQL conversion rate 80% 80%
SALs needed per quarter 133 125
MQL to SAL conversion rate 10% 10%
MQLs needed per quarter, one quarter earlier 1,333 1,250 1,500
Cost/MQL 250 250 250
Demandgen budget needed per quarter $ 333,333 $ 312,500 $ 375,000
Annual

Driver cells
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YoY growth ra 50%
d Plan Model
4Q20 1Q21 2Q21 3Q21 4Q21
2,000,000 1,875,000 2,250,000 2,700,000 3,000,000
75,000 75,000 75,000 75,000 75,000
26.7 25.0 30.0 36.0 40.0
20% 20% 20% 20% 20%
150 180 200
80% 80% 80%
120 144 160
2.5 2.5 2.5
4 5 5
80% 80% 80%
150 180 200
10% 10% 10%
1,800 2,000
250 250
$ 450,000 $ 500,000
1,470,833
Comment
Assume 2020 numbers are plan; 2021 calculated off driver growth rate
Assume not changing over time, though you might model it to change 1x/year

Assume not changing over time, though you might model it to change 1x/year

Assume not changing over time, though you might model it to change 1x/year

Assume not changing over time, though you might model it to change 1x/year

Assume not changing over time, though you might model it to change 1x/year

Assume not changing over time, though you might model it to change 1x/year

Assume not changing over time, though you might model it to change 1x/quarter

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