Dear SaaStr: What’s a Good Lead-to-Demo Ratio for our SDR:AE Handoff? We have a mid-market sale.
Lead-to-demo rate is another critical metric to track, especially for outbound teams. It measures the percentage of leads your team engages with that actually convert into demos. Essentially, it’s the bridge between your connect rate and your demo-to-close rate.
For mid-market SaaS, a solid lead-to-demo rate typically falls in the 15%-25% range.
If you’re below 15%, it’s a sign that your outreach or qualification process might need work. If you’re above 25%, it could mean your team is cherry-picking leads or your top-of-funnel isn’t broad enough, which might limit scale.
How to Improve Lead-to-Demo Rate
#1. Tighten Your ICP (Ideal Customer Profile): Make sure your SDRs are laser-focused on the right personas and accounts. The better your targeting, the higher your lead-to-demo rate.
#2. Refine Your Messaging: If your connect rate is decent but leads aren’t converting to demos, your pitch might not be resonating. Test different value propositions or hooks.
#3. Speed to Lead: Responding to inbound leads within minutes can dramatically increase demo rates. For outbound, ensure follow-ups are consistent and timely.
#4. Leverage Data and Predictive Models: Use activity scoring or predictive models to prioritize leads most likely to convert (e.g., based on engagement signals like email opens, clicks, or website visits).
If your lead-to-demo rate is strong but your demo-to-close rate is weak, the issue might lie further down the funnel.
But in most categories, prospects don’t want to waste their time. Getting them to take a true demo is a great way to measure the success of SDR:AE hand-offs of leads.
