kellblog.com · 2023-05-01 · 1130d

How to Simplify Your Marketing Funnel: Seeing the Unit Cost Forest for the Conversion Rates Trees

This article critiques overly complex marketing funnel reporting and advocates for simplified, executive-friendly dashboards that focus on key conversion hops and unit economics rather than granular conversion rates. The author demonstrates how to restructure funnel analysis to highlight cost-per-opportunity, cost-per-deal, and ARR impact, enabling leaders to identify business model problems rather than getting lost in data.

5 metrics· Cited 0× in the knowledge base ·Open source ↗

Metrics in this report

ARR Average Sales Price (ASP)

33$K

Initial baseline in article example; declined 22% to $26K by end of period

CAC Ratio

2.0ratio

Back-of-envelope calculation example with $16K cost per deal and $32K ARR ASP

Cost Per Stage-2 Opportunity

2.2$K

Demandgen example in the article; remained constant quarter-over-quarter despite other funnel deterioration

Demandgen Cost Per Deal

6.8$K

Initial baseline; increased to $10.1K (48% increase) by end of period in article example

Stage 2 to Close Conversion Rate

33percent

Initial baseline in article example; declined to 22% by end of period