Understanding the Difference: Conversions vs. Stages
When analyzing your data in Dreamdata, you'll encounter the terms 'conversions' and 'stages'. These terms have distinct meanings. Let's break them down.
Conversions
Within Dreamdata, 'conversions' refer to a categorization method for recorded events on your account. Simply put, they are actions or events undertaken by users or leads. Examples of conversions include:
- Demo Request
- Free Sign Up
- Trial Sign Up
- Request Sales Call
Configuration Tip: To tailor how Dreamdata groups events into conversions, navigate to Data Platform → Settings → Conversions.
You can read more about how Dreamdata uses conversions here.
Stages
Stages, in contrast, describe the distinct phases or steps within the go-to-market funnel. Each stage characterizes a specific level of engagement or readiness of a lead or prospect. Typically, stages are set up in a sequence to mirror a customer's journey, from the first point of contact to the final purchase decision. Stages are not necessarily tied to a particular event.
Some common stages include:
- MQL (Marketing Qualified Lead): This represents the top of the funnel. MQLs are leads that have shown interest in your offerings, typically through events like downloading content, attending webinars, or initiating website interactions. These leads are considered as potential sales opportunities, but they are not yet ready for direct sales engagement.
- SAL (Sales Accepted Lead): Representing the middle of the funnel, SALs are leads that have been reviewed and accepted by the sales team for further engagement. As an example, this is where the sales team believes the lead has potential and is worth pursuing. This stage is often defined by the creation of an Opportunity or Deal in your CRM.
- SQL (Sales Qualified Lead): This represents the bottom of the funnel. SQLs are leads that have shown clear buying intent and are deemed ready for a sales pitch or demonstration. This stage is typically defined by an Opportunity or Deal moving to the Sales Pipeline in your CRM.
- Closed Won: This is the final stage where the lead has been converted into a paying customer. It's the ultimate goal of the sales process and signifies a successful journey through the funnel. This stage is typically defined by an Opportunity or Deal being assigned a Closed Date in your CRM.
It's essential to recognize that while stages are linear in description, in practice, leads might move back and forth between stages or skip stages altogether based on their unique journey and the strategies employed by the business.
Click here for guidance on defining the stages in Dreamdata.
In Summary
While closely related, conversions and stages serve different roles.
Conversions represent a group of actions/events taken by leads. A conversion can happen without a lead progressing to the next stage of the funnel.
Stages, on the other hand, illustrate the progression of a customer in the journey from being unaware of a solution to making a purchase decision. A stage does not necessarily consist of an event, a stage can be reached by an opportunity being created or even obtaining a Closed Date.
