What is Demand Waterfall?
Demand Waterfall is a core concept in modern B2B revenue. Here is a clear, accurate definition, why it matters, and how Ardovo handles it.
Short answer
The demand waterfall is a model that maps how leads progress through defined stages from initial inquiry to closed deal, with conversion rates at each step. Popularized by SiriusDecisions, it gives marketing and sales a shared framework to measure funnel performance, forecast pipeline, and diagnose exactly where leads are lost along the way.
Key takeaways
- Maps lead progression through defined funnel stages.
- Assigns conversion rates to each step.
- A shared marketing and sales measurement framework.
- Diagnoses where leads leak in the funnel.
Why it matters
Without a shared funnel model, marketing and sales argue about lead quality with no common language. The demand waterfall gives both a standard set of stages and conversion metrics to measure and improve together.
How Ardovo handles it
Ardovo tracks conversion between every funnel stage on one platform, so the demand waterfall is computed from live data rather than assembled from separate marketing and sales reports. Rook flags the weakest conversion step.
Frequently asked questions
What is the demand waterfall?
A model, popularized by SiriusDecisions, that defines the stages leads pass through from inquiry to closed deal and the conversion rate at each. It gives marketing and sales a shared way to measure and forecast the funnel.
Why use a demand waterfall model?
It creates a common language and metrics across marketing and sales, so both can measure funnel performance, forecast pipeline from conversion rates, and pinpoint exactly which stage is leaking rather than blaming each other.