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The Funnel is Dead 2: Evaluating Demand Units

June 27, 2018    |     Lindsay Jawor

(Read Part 1 Here)

Now that we’ve got the demand unit concept under our belt, it’s time to explore the ways that we evaluate and measure these demand units.

Taking what we’ve learned from SiriusDecisions, we can begin to create our own concepts of the Demand Unit Waterfall and discover how to make it work for us.

Defining Stages

The first step is to define demand unit stages. Traditionally, we’ve all looked at incoming prospects as either marketing-qualified (MQL) or sales-qualified leads (SQL). The truth is, we can dig in deeper to these leads to accurately define where they sit within our demand waterfall. This gives us the ability to better target and measure their progress, value, and likelihood to convert—which, in turn, gives our marketing and sales teams the ability to prioritize and nurture leads more effectively.

Screen Shot 2018-08-29 at 12.09.09 PMTARGET: Total addressable market. Account-based, company-filtered, anonymous IP address traffic.

ALIVE: Identified,engaged prospects with known demographics.

ENGAGED (MQL): A prospect that has converted/engaged with one or more content items and shows serious interest in products/services.

FIT (SQL): Prospect behavior reaches purchase intent threshold by requesting a product demo or direct communication with representative.

OPPORTUNITY (Pipeline): Sales has made contact with delivered lead and it garners enough conversation to enter into CRM as potential sales opportunity.

CUSTOMER: Delivered lead who has made a purchase.

As you can see, this process isn’t static, but is a closed-loop system that continues to generate demand. Customers continue to purchase, but even those who don’t contribute valuable data that helps drive new leads through lookalike audiences and perpetual optimization of targeting.

Evaluating and Measuring

From there, it’s vital to assign values to the leads at each stage of the process. This helps to measure leads, but it also fosters transparency and understanding between marketing and sales.




As the leads move through the process, they gain value to your marketing and sales teams. Assessing value and assigning actual numbers to demand units helps with prioritizing and budgeting your marketing and sales efforts accurately and efficiently

Additionally, it lets us stop looking at leads the same way. Rather than taking all the leads that marketing interacted with and handing them over to sales, we can create a full cycle of in-depth, data-driven lead nurturing and tracking that guarantees a higher conversion rate.




Looking at demand units provides a more accurate picture of the lead conversion process from beginning to end. Not only does it give you a picture of where you stand with each individual demand unit, but it eliminates confusion about conversion rates. Rather than thinking you converted 1 out of 132 possible leads (.75%), you can prove that you actually converted 1 out of 75 possible demand units (1.3%). This isn’t just a perspective change, it’s a more accurate picture of your demand generation process.


To see how Advantage has been putting demand units to work for clients, check out our Mobius Pilot Case Study here: Bridging the Gap Between Sales and Marketing: A Living Case Study.

Advantage Business Marketing’s Mobius Platform is a closed-loop solution that uses the concept of demand units to create perpetual demand generation. To start generating true perpetual demand, drop us a line today.



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