You hit 100% conversion on your latest funnel step. Congratulations?
Not so fast. This “perfection” is actually costing you big money.
Here’s why you’re leaving cash on the table.
Many business owners strive for high conversion rates within their funnels, and understandably so.
However, a 100% conversion rate at any stage of your funnel is not a sign of optimal performance; it’s a problem.
Think of it like a hotel with 100% occupancy all the time. While seemingly good, it means you could be charging more or being more discerning with your guests.
The same applies to your business funnels.
If 100% of your sales calls convert, you’re likely over-screening your leads, missing out on qualified prospects who were rejected too early.
If every prospect who enters your funnel buys, you are almost certainly charging too little for your product or service.
Similarly, a 100% upsell take-rate indicates you could likely increase the upsell price, offer a more premium upsell, or add additional upsells.
This concept relates to the “Newsvendor Problem”, where either having too much or too little supply for demand leads to lost revenue.
An overly effective funnel means you’ve effectively constrained your own growth and are leaving significant revenue on the table.
🧠 The bigger idea: While high conversion rates are desirable, 100% conversion is a red flag signaling missed opportunities. It means you’re not casting a wide enough net, or you’re underpricing, preventing you from maximizing profits and acquiring more customers.
Have you ever looked at a “perfect” conversion rate in your business and realized it was a missed opportunity? Share your experience.