After meeting with the Chief Revenue Officer (CRO) you discovered that X Corporation is way behind with new sales (new $ARR, annual recurring revenue). Leads are up, closed deals are up, revenue is up; yet X Corporation is still behind plan and the investors are not happy. You decide to look closely at the funnel data (demonstrated below) to understand how X Corporation is so far behind plan.

Based on the data, how would you address the following:

1) What insights do you have about the actual revenue performance of the team as compared to plan?

2) Which part of the funnel would you recommend the company focus their efforts on?

3) How would you work to build alignment surrounding a plan to get X Corporation to the $2M planned New ARR performance, yet still be fiscally responsible with CAC (customer acquisition costs)?

*In data, MQL is a marketing qualified lead that is much more likely to buy than just a plain lead. SAL is a sales accepted lead that is in the place where the hand-off occurs between marketing and sales. SQL is a sales qualified lead that has shown definite interest in something we can provide. ASP is average sales price.

Metric Quarter 1 Q2 Q3 Q4 Q5 Q6 Q7 Q8 Traffic 120,000 132,000 145,200 159,720 175,692 193,261 212,587 233,846 MQL 1.200 1,452 1,757 2.126 2,572 3, 112 3,766 4,557 SAL 360 479 638 849 1,027 1,243 1,504 1,820 SQL 270 359 478 637 693 755 822 895 Wins 135 180 239 318 347 378 411 448 ASP $25,000 $25,000 $25,000 $25,000 $25,000 $25,000 $25,000 $25,000 Actual New 281,250 374,344 498,252 663,173 722, 195 786,471 856,466 932,692 $ARR Plan New 281,250 374,344 498,252 663,173 882,683 1, 174,851 1,563,727 2,081,320 $ARR