Demand Waterfall®: What to Measure and Why
Presented by Forrester
The Demand Waterfall® measures, monitors, and manages revenue from target to close for a B2B organization. While the Demand Unit Waterfall measures revenue with a buying- group-centric approach, the rearchitected Demand Waterfall does so with a lead-centric approach. The Demand Waterfall tracks volume, conversion rates, velocity, and value, regardless of which Demand Waterfall model an organization chooses.
Today, many people take for granted that the smartphone in their pocket knows their exact location on Earth. This global positioning satellite (GPS) technology relies on the collection of measurements from four satellites. The first measurement provides only the distance from that satellite, with no directional information, the second satellite narrows the possibilities to a large circle where the two readings intersect, and the third satellite allows the system to narrow that circle to two precise points on Earth. Finally, the fourth measure provides the missing piece of data to determine the exact location.
As organizations measure B2B revenue generation, each Demand Waterfall ® relies on a similar set of four interconnected metrics to create a complete, accurate picture of the revenue engine. In this report, we outline how to calculate volume, conversion rates, velocity, and value, as well as explain how the measurements can be applied to either the Demand Unit Waterfall™ or the rearchitected Demand Waterfall ® .