--- title: How To Calculate Your Sales Funnel Quality [Calculator] description: Apply lean six sigma principles to your sales and marketing efforts by using our Defects Per Million Opportunities (DPMO) calculator to determine your sales and marketing failure rate. Ideal for comparing different organizations as well as establishing SLAs that work and then improving them. image: https://www.sapbwconsulting.com/hubfs/sales_funnel_four_stage_400_clr_2822.png --- ![Sales Funnel Failure Rate Calculator](https://www.sapbwconsulting.com/hubfs/sales_funnel_four_stage_400_clr_2822.png) # How To Calculate Your Sales Funnel Quality [Calculator] Table of Contents ## How to Become a [Sales Funnel Consultant](https://www.sapbwconsulting.com/sales-funnel-inbound-marketing-and-sales-assessment-calculator) Because we come from a manufacturing background, specifically, aerospace & defense, we have a deep appreciation for [quality](https://www.sapbwconsulting.com/sap-partner-website-ranking-inbound-marketing-benchmark-report). During the past few months, we have been working with various [Marketing and Sales](https://www.sapbwconsulting.com/hubspot-integrations-sales-sap-chat) clients to improve their '[funnels](https://www.sapbwconsulting.com/blog/inbound-marketing/3-marketing-routes-to-reach-your-crm-goals)', whether they are [Marketing Funnels](https://www.sapbwconsulting.com/blog/inbound-marketing/the-best-inbound-sales-methodology-sell-the-way-prospects-buy) or [Sales](https://www.sapbwconsulting.com/hubspot-crm-implementation-sales-enablement) Pipeline Funnels.   ![Sales Funnel Failure Rate Calculator](https://www.sapbwconsulting.com/hs-fs/hubfs/sales_funnel_four_stage_400_clr_2822.png?width=400&name=sales_funnel_four_stage_400_clr_2822.png)  How Well Does Your Funnel Work?     ## Conversion Rate [Funnels](https://www.sapbwconsulting.com/blog/inbound-marketing/10-ways-internet-marketing-reveals-inventory-problems) Are Also Failure Rate Funnels Within the [Hubspot Inbound Marketing](https://www.sapbwconsulting.com/blog/inbound-marketing/10-hubspot-crm-inbound-sales-best-practices) world, one of the key concepts is the establishment of an SLA or [Service Level Agreement ](https://www.sapbwconsulting.com/marketing-and-sales-sla-calculator-service-level-agreement)between marketing and the sales team. It's a great idea, if not always executed according to '[plan](https://www.sapbwconsulting.com/blog/how-to-use-a-project-charter-to-start-a-project)'. ## What is an SLA ### And what does it have to do with Calculating [Sales Funnel Quality](https://www.sapbwconsulting.com/inbound-marketing-and-sales-assessment-calculator)? An [SLA is an agreement between two of the most critical parties in any organization](https://www.sapbwconsulting.com/blog/how-to-determine-your-fully-loaded-cost-rate):   1. Sales 2. Marketing. ## Having a [Defined Sales Process](https://www.sapbwconsulting.com/blog/inbound-marketing/how-to-get-your-sales-roar-on) is Key Designing your own [sales funnel](https://www.sapbwconsulting.com/blog/inbound-marketing/the-ultimate-guide-to-sales-funnel-design-and-optimization) is a key task to successfully setting up a [sales pipeline](https://www.sapbwconsulting.com/blog/inbound-marketing/10-shortcuts-to-mastering-multi-channel-marketing) that results in the shortest possible s[ales cycle time](https://www.sapbwconsulting.com/blog/inbound-marketing/key-sales-funnel-metrics-are-you-tracking-what-truly-drives-success).  It's also one of the prerequisites to being able to [measure sales](https://www.sapbwconsulting.com/blog/inbound-marketing/unique-techniques-to-increase-your-company-revenues) funnel efficiency, i.e., [pipeline conversion rate](https://www.sapbwconsulting.com/blog/inbound-marketing/hubspot-pipeline-customization) and to improve your win rate.  Marketing [automation tools](https://www.sapbwconsulting.com/blog/inbound-marketing/3-multi-platform-marketing-resolutions-to-kick-off-the-new-year), such as Hubspot CRM, make this task a breeze, even for the most complex [sales process](https://www.sapbwconsulting.com/blog/inbound-marketing/4-ways-to-bring-digital-innovation-to-your-company). ## Marketing Efforts Must Generate Revenue For your [sales reps](https://www.sapbwconsulting.com/consulting-rate-calculator-whats-your-rate) to hit their [individual sales rep goals](https://www.sapbwconsulting.com/blog/inbound-marketing/free-online-sales-and-inbound-marketing-calculator-determine-website-traffic-and-sales-goals), your marketing content must be designed to [generate hot leads](https://www.sapbwconsulting.com/blog/inbound-marketing/how-do-sap-partner-websites-rank-benchmark-report) from the [top of the funnel](https://www.sapbwconsulting.com/blog/inbound-marketing/attract-convert-close-delight-inbound-marketing-strategy) all the way until cold prospects are turned into paying customers.   ## Lead Magnet Gets Them Into Awareness Stage of Your Sales Funnel A well designed [lead magnet](https://www.sapbwconsulting.com/blog/inbound-marketing/59-b2b-lead-generation-ideas-to-steal-tips-to-drive-more-sales-leads) will attract [potential customers](https://www.sapbwconsulting.com/blog/inbound-marketing/can-you-compute-the-value-of-a-lead-calculator) from target audience.  Relevant content developed for these prospective customers, coupled with the right [lead nurturing](https://www.sapbwconsulting.com/blog/inbound-marketing/can-you-compute-the-value-of-a-lead-calculator-1) activities and sales activities, will help convert these potential customers into paying customers.   ## Existing Customers Can Drastically Influence [Conversion Rates](https://www.sapbwconsulting.com/blog/inbound-marketing/how-to-correctly-calculate-conversion-rate-3-easy-formulas-to-use) Once customers have reached the consideration stage for specific solutions to their want or need, they often begin or continue to evaluate, specific companies. Up until this point, [your marketing content](https://www.sapbwconsulting.com/blog/inbound-marketing/how-to-generate-b2b-leads-for-sap-partners-the-ultimate-guide) has been used to convert prospective customers into ever more qualified leads.   ## Sales Funnel Calculator When there is an [SL](https://www.sapbwconsulting.com/blog/inbound-marketing/the-guaranteed-easiest-way-to-calculate-sla)[A](https://www.sapbwconsulting.com/blog/inbound-marketing/the-guaranteed-easiest-way-to-calculate-sla) in place, each member of your marketing and sales team has agreed upon [performance metrics](https://www.sapbwconsulting.com/blog/5-kpi-design-best-practice-guidelines) that they will commit to. Marketing will deliver a certain number of Marketing Qualified Leads or MQLs to Sales. Sales will work to convert these [MQLs to SQLs](https://www.sapbwconsulting.com/blog/inbound-marketing/4-ingredients-for-a-successful-direct-marketing-mix-recipe) (Sales Qualified Leads) and [ultimately](https://www.sapbwconsulting.com/blog/inbound-marketing/learn-how-to-land-big-customers-using-multi-channel-marketing), into customers. Viewed graphically, they have a funnel, and each owns different parts of it.   ## Knowing How to Calculate Pipeline Conversion Rates is Critical   Your [Sales Funnel](https://www.sapbwconsulting.com/blog/justify-your-project-with-sales-equivalency-analysis) is a conversion rate driven process and the first step in [measuring your Sales](https://www.sapbwconsulting.com/blog/inbound-marketing/10-ways-profound-knowledge-can-improve-building-landing-pages) Funnel Quality is to learn how to calculate your Sales Funnel Conversion Rate.  It's [a simple calculation](https://www.sapbwconsulting.com/blog/inbound-marketing/11-super-secret-service-level-agreement-techniques) and we've developed this Sales Funnel Conversion Rate Calculator for you to use to begin the process of evaluating your [Sales Funnel Quality](https://www.sapbwconsulting.com/marketing-and-sales-sla-calculator-service-level-agreement) using common sales funnel stats. ## How to Calculate Sales Funnel Conversion Rates   ## Sometimes it Works, Sometimes it Doesn't Having an [SLA](https://www.sapbwconsulting.com/marketing-and-sales-sla-calculator-service-level-agreement) in place is already a major leg up on a company's competition, as most don't have one. As long as a company can set a revenue target, then you can design a [Marketing and Sales Funnel](https://www.sapbwconsulting.com/blog/inbound-marketing/learn-to-unclog-your-sales-funnel) and get sign-off on your SLA. ### When Conversion Doesn't Happen, You Have a Failure Rate Let's say you have 1000 website visitors to your [website](https://www.sapbwconsulting.com/website-grader) in a month, of which 100 convert into leads (normally by [completing a form and identifying themselves](https://www.sapbwconsulting.com/blog/inbound-marketing/13-proven-steps-to-optimize-inbound-marketing-forms-more-sales-leads)) and of those 100, 10 become customers. That would be a nice smooth 10% conversion rate at each stage of this simplified 3 step sales funnel.   ### There's just one problem ### Ninety Percent Failed to Convert If you were [making parts](https://www.sapbwconsulting.com/fully-loaded-cost-calculator) or running a process, like processing a check, and you had this level of failure, you wouldn't remain in business very long. How [about if you](https://www.sapbwconsulting.com/blog/inbound-marketing/how-to-use-social-media-to-your-advantage-in-your-business) wanted to compare the sales funnels of [2 different divisions](https://www.sapbwconsulting.com/blog/inbound-marketing/blog/how-to-use-facebook-ads-mindmap) within a company? How would you do it? ### Defects Per Million Opportunity (DPMO) to the Rescue As part of our sales funnel consulting practice, we like to help our clients learn how to focus on sales funnel quality.   In order to compare the 2 different sales funnels, which might consist of different levels and almost certainly of different capabilities, you would need to identify the total number of possible defects. Without getting too deep into the math, lets say one process had 10 possible defects that could occur and the other had 20. By converting it into a DPMO number, you could rate the sigma level of each sales funnel. Might sound nerdy, but it would work.   ## What About Your Paid Advertising Efforts > Half the money I [spend on advertising](https://www.sapbwconsulting.com/blog/inbound-marketing/how-to-estimate-google-ppc-adwords-performance) is wasted; the trouble is I don't know which half. > John Wannamaker (1836-1922) ### Could You Apply a Sigma Level to Them? Let's be honest, we're saturated with advertising, with consumers seeing up to 5000 ads per day. For the most part, they put them on ignore. Most tools, like Google, [Facebook](https://www.sapbwconsulting.com/request-facebook-ad-management-services), Pinterest, [Twitter](https://www.sapbwconsulting.com/blog/inbound-marketing/42-essential-hubspot-integrations-b2b-marketers-need-to-start-using), Instagram, and many others, have easy to use, but highly sophisticated [advertising capabilities](https://www.sapbwconsulting.com/blog/inbound-marketing/10-ways-to-improve-google-ads-roi-with-hubspots-ads-add-on), and they work. ## The Question Is - How Well?  In other words, how to calculate quality is a tough question to answer. Each platform also provides statistics to measure every aspect of your campaigns. If you were to summarize their statistical reporting capability, you'd have to conclude they are 'success' oriented from top-to-bottom. That makes sense; bad for business if you go the other way.   The truth is, though, if you show an ad to 1,000,000 people and ultimately only convert 1% (or 10,000) of them became customers, then your ad failed 99% of the time. By the way, you can get higher conversions rates, I do all the time. Way higher.   But viewed through the lens of Six Sigma, which means 999,996 (only 3.4 people did become customers) people should have became customers (never happened in the history of mankind - yet), then your ad process needs some help.   ## [DPMO Calculator](https://www.sapbwconsulting.com/defects-per-million-opportunities-dpmo-calculator) In order to improve something, you need a way to measure it. That's why we've developed, as part of our [**Sales Funnel Consulting Services**](https://www.sapbwconsulting.com/inbound-sales-consulting-implementation), this [**Defects Per Million Opportunities Calculator**](https://www.sapbwconsulting.com/defects-per-million-opportunities-dpmo-calculator) for our marketing clients, based on our experience with Total Quality Management or TQM. ## DPMO Calculator Online       ## Downloadable Version of the DPMO Calculator Though this calculator is online, and you can use it often as you want, you can also grab it for FREE just by clicking the button. You can use this tool to measure and improve your [Sales and Marketing funnel](https://www.sapbwconsulting.com/blog/inbound-marketing/how-to-use-hubspot-prospects-and-linkedin-sales-strategy) on your way to achieving a 6 Sigma performance level.   [![Get Your Defects Per Million Opportunities (DPMO) Calculator](https://no-cache.hubspot.com/cta/default/118735/74d1e3a4-2556-430b-ab2e-c8e50fdf5a34.png)](https://cta-redirect.hubspot.com/cta/redirect/118735/74d1e3a4-2556-430b-ab2e-c8e50fdf5a34)   Don't worry, it works just as it always has for manufacturing or [sales process](https://www.sapbwconsulting.com/blog/inbound-marketing/the-shocking-truth-about-your-sap-sales-process) analysis, we just found a place where we thought the precepts of [Lean Quality Management](https://www.sapbwconsulting.com/free-website-seo-grade-audit-serp-sem-amp) could be applied in a new way.   **People Who Read This Also Read:** - [How To Translate SAP Modules Into Business Process Capabilities](https://www.sapbwconsulting.com/blog/how-to-translate-sap-modules-into-business-process-capabilities) - [5 Reasons A Datawarehouse Is Critical To A Solid Balanced Scorecard](https://www.sapbwconsulting.com/blog/5-reasons-a-datawarehouse-is-critical-to-a-solid-balanced-scorecard) - [7 Warning Signs Your CRM Customer Service Processes Are Broken](https://www.sapbwconsulting.com/blog/7-warning-signs-your-crm-customer-service-processes-are-broken) - [SAP SEM CPM Risk Register Design Template](https://www.sapbwconsulting.com/sap-sem-cpm-risk-register-design-template) - [SAP SEM CPM Balanced Scorecard Input Template](https://www.sapbwconsulting.com/sap-sem-cpm-balanced-scorecard-input-template)     ## **Complete Inbound Sales and E-commerce Consulting Support**   At SAP BW Consulting, Inc., we empower businesses with expert Inbound Sales Consulting Services. We use [advanced tools](https://www.sapbwconsulting.com/blog/inbound-marketing/website-seo-optimization-checker), such as our Sales Funnel Quality and Defects Per Million Opportunities (DPMO) calculators, to optimize your sales process and improve conversion rates. From strategic SLA development to precise measurement techniques, our approach ensures your sales and marketing alignment drives revenue growth. Additionally, we offer comprehensive Shopify and [Amazon consulting](https://www.sapbwconsulting.com/amazon-consulting-amazon-ads-management-e-commerce), covering [SEO](https://www.sapbwconsulting.com/seo-roi-calculator), store customization, and e-commerce strategy.   Ready to maximize your sales potential? [Book a meeting with us](https://www.sapbwconsulting.com/request-sap-implementation-consulting-support-meeting-request).   If you liked this, please share it using the [Social Media](https://www.sapbwconsulting.com/blog/inbound-marketing/three-ways-social-media-marketing-is-changing-the-way-we-shop) buttons at the bottom of the article because it helps us know what our users need.    Thanks Topics from this blog: [Balanced Scorecard](https://www.sapbwconsulting.com/blog/inbound-marketing/topic/balanced-scorecard) [Sales Funnel](https://www.sapbwconsulting.com/blog/inbound-marketing/topic/sales-funnel) [Benchmarking](https://www.sapbwconsulting.com/blog/inbound-marketing/topic/benchmarking) [Facebook Ads](https://www.sapbwconsulting.com/blog/inbound-marketing/topic/facebook-ads) [Six Sigma](https://www.sapbwconsulting.com/blog/inbound-marketing/topic/six-sigma) ### Download SAP BW Mindmap Learn what SAP Business Warehouse is and what it does in under five minutes [![Get this Mindmap](https://no-cache.hubspot.com/cta/default/118735/8db2ad37-8211-47a3-86ae-09b6b2bb297b.png)](https://cta-redirect.hubspot.com/cta/redirect/118735/8db2ad37-8211-47a3-86ae-09b6b2bb297b) [mailto:someone@yoursite.com](mailto:someone@yoursite.com) ### Lonnie D. Ayers, PMP About the Author: Lonnie Ayers is a Hubspot Certified Inbound Marketing consultant, with additional certifications in Hubspot Content Optimization, Hubspot Contextual Marketing, and is a Hubspot Certified Partner. Specialized in demand generation and sales execution, especially in the SAP, Oracle and Microsoft Partner space, he has unique insight into the tough challenges Service Providers face with generating leads and closing sales using the latest digital tools. With 15 years of SAP Program Management experience, and dozens of complex sales engagements under his belt, he helps partners develop and communicate their unique sales proposition. Frequently sought as a public speaker in various events, he is available for both inhouse engagements and ** remote coaching. ** ![Balanced Scorecard Consultant](https://www.sapbwconsulting.com/hubfs/social-suggested-images/Balanced%20Scorecard%20Certified%20Graduate.jpg) He also recently released a book **"How to Dominate Any Market - Turbocharging Your Digital Marketing and Sales Results",** which is available on [ Amazon.](https://www.amazon.com/Dominate-Turbocharging-Digital-Marketing-Results/dp/1728357950/ref=sr_1_1?dchild=1&qid=1589182458&refinements=p_27%3ALonnie+D.+Ayers&s=books&sr=1-1&text=Lonnie+D.+Ayers)**** [View All Articles by Lonnie D. Ayers, PMP](https://www.sapbwconsulting.com/blog/inbound-marketing/author/lonnie-d-ayers-pmp) ## The SAP Blog Subscribe to our blog and receive SAP BW Updates, demand generation, inbound marketing, sales enablement, technology and revenue generation insights and ideas delivered right to your email. [mailto:someone@yoursite.com](mailto:someone@yoursite.com) ![SAP](https://googleads.g.doubleclick.net/pagead/viewthroughconversion/960101754/?value=0&guid=ON&script=0) ![](https://www.facebook.com/tr?id=199270410761059&ev=PageView&noscript=1) ```json { "@context" : "https://schema.org", "@type" : "BlogPosting", "author" : { "@type" : "Person", "name" : "Lonnie D. 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"position" : 1 }, { "@type" : "ListItem", "name" : "Blend conversion rates with velocity and deal size for a true quality score.", "position" : 2 }, { "@type" : "ListItem", "name" : "Benchmark CAC and CLV to ensure growth is profitable.", "position" : 3 } ], "mainEntityOfPage" : { "@id" : "https://www.sapbwconsulting.com/blog/inbound-marketing/how-to-calculate-sales-funnel-quality-calculator" }, "name" : "Sales Funnel Quality — Key Takeaways" } ``` ```json { "@context" : "https://schema.org", "@id" : "https://www.sapbwconsulting.com/blog/inbound-marketing/how-to-calculate-sales-funnel-quality-calculator#howto", "@type" : "HowTo", "description" : "Step-by-step method to compute a funnel quality score.", "mainEntityOfPage" : { "@id" : "https://www.sapbwconsulting.com/blog/inbound-marketing/how-to-calculate-sales-funnel-quality-calculator" }, "name" : "Calculate Your Sales Funnel Quality", "step" : [ { "@type" : "HowToStep", "name" : "Collect inputs", "position" : 1, "text" : "Gather leads by stage, average deal size, sales cycle length (days), CAC, and CLV." }, { "@type" : "HowToStep", "name" : "Compute stage conversions", "position" : 2, "text" : "Calculate conversion % for each stage transition (Lead→MQL, MQL→SQL, SQL→Closed)." }, { "@type" : "HowToStep", "name" : "Score the funnel", "position" : 3, "text" : "Combine weighted conversion, velocity (deals/month), and unit economics (CLV:CAC)." } ] } ``` ```json { "@context" : "https://schema.org", "@id" : "https://www.sapbwconsulting.com/blog/inbound-marketing/how-to-calculate-sales-funnel-quality-calculator#faq", "@type" : "FAQPage", "mainEntity" : [ { "@type" : "Question", "acceptedAnswer" : { "@type" : "Answer", "text" : "There’s no single universal score, but high-quality funnels show strong stage conversions (especially MQL→SQL and SQL→Closed), short cycles, and a CLV:CAC ratio above 3:1." }, "name" : "What is a good sales funnel quality score?" }, { "@type" : "Question", "acceptedAnswer" : { "@type" : "Answer", "text" : "Monthly is typical; weekly during rapid experimentation or seasonality. Always compare to your prior periods and targets." }, "name" : "How often should I recalculate funnel quality?" }, { "@type" : "Question", "acceptedAnswer" : { "@type" : "Answer", "text" : "Both matter. Volume without quality wastes spend; quality without volume limits growth. 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