Table of Contents
B2B Sales Funnel Conversion Rates in 2023: Benchmarks and Trends
Introduction
The first half of 2023 has been a challenging time for B2B SaaS businesses. With uncertainties and changes in the market, it’s essential to evaluate your marketing and sales funnel conversion rates. In this article, we will discuss the current state of B2B sales funnel conversion rates and provide benchmarks for comparison. Please note that while we have taken great care to provide accurate and reliable information, some of the data in this article may be based on commonly accepted figures without clear original sources. We will highlight these instances to emphasize the reliability issues associated with such numbers.
General Changes in Sales Funnel Conversion Rates
Sales Cycle Length
One noticeable change is the lengthening of sales cycles. In 2022, sales cycle length increased by 32%, and nearly half of companies reported longer sales cycles. Startups, in particular, saw a 24% increase, with enterprise deals experiencing a 36% growth in cycle time.
Win Rates
The win rates for B2B SaaS companies have decreased to 17-20% in 2023. This decline in win rates can be attributed to various factors, such as market conditions and increased competition.
Number of Stakeholders
Deals in the B2B SaaS space now involve a larger number of stakeholders. In 2022, the average number of stakeholders in a deal rose to 10. This trend indicates that decision-making processes have become more complex and require more extensive buy-in from multiple parties.
Quota Attainment
42% of companies faced a decrease in quota attainment in 2022. These challenges in meeting sales quotas can be attributed to market uncertainties and the changing dynamics of buyer behavior.
Conversion Rates at Different Funnel Stages
MQL to SQL Conversion Rate
The rate at which Marketing Qualified Leads (MQLs) convert to Sales Qualified Leads (SQLs) is an important metric to measure the effectiveness of your marketing efforts. The average industry-accepted conversion rate ranges from 11-15% (2023). However, it’s crucial to note that there isn’t a clear original source for this figure, so it should be taken with caution.
SQL to Opportunity Conversion Rate
The conversion rate from SQLs to opportunities is another critical metric to evaluate the efficiency of your sales team. The average conversion rate for this stage is approximately 13% (pre-Covid industry-accepted average). However, it’s important to consider that the source of this figure is not clearly specified.
Opportunity to Closed-Won Conversion Rate
Closing opportunities and converting them into closed-won deals is the ultimate goal of any B2B sales funnel. The average conversion rate for this stage ranges from 12-25% (2018). It’s worth mentioning that these figures are not specific to the current market conditions but provide a general benchmark.
SDR-Sourced Leads Conversion Rates
If you have a Sales Development Representative (SDR) team responsible for qualifying leads, it’s essential to track their conversion rates. The average conversion rate for SDR-sourced leads is approximately 59% (2019). However, it’s crucial to review your specific industry and target market to gauge the effectiveness of your SDR team accurately.
Conclusion
In summary, B2B SaaS businesses are experiencing changes in their sales funnel conversion rates, primarily due to market conditions and shifts in buyer behavior. The lengthening of sales cycles, decreasing win rates, and the involvement of more stakeholders are notable trends in the industry. To assess your team’s performance, it’s important to compare your conversion rates to benchmarks and industry standards. While the figures presented here should be taken with caution, they provide a starting point for evaluating your marketing and sales funnel. Stay updated with the latest trends and continuously analyze your metrics to adapt and optimize your B2B sales strategies.
Disclaimer: The figures and benchmarks mentioned in this article are based on available data sources, but their accuracy and reliability may vary. It’s always recommended to refer to reputable external sources and conduct thorough market research for your specific industry and target market.