Diagnose Where Lead Quality Is Breaking Down in Your Funnel
by Mentor Group
Why You Need Diagnosis Before More Demand
When leaders ask how to inject more qualified leads into my pipeline, the instinctive response is often, “We need more demand.”
But if your existing leads aren’t converting, pouring more into the top of the funnel just gives you a bigger, noisier version of the same problem.
Before you change campaigns, cadences or budgets, you need to diagnose where lead quality is actually breaking down:
- Are you attracting the wrong accounts?
- Are you talking to the wrong people in the right accounts?
- Are good leads being mishandled or misrouted?
- Are qualification standards weak or inconsistently applied?
This article takes Step 2 of our guide on how to inject more qualified leads into my pipeline and goes deeper on how to run a practical, evidence-based diagnosis of your funnel.
Map the End-to-End Journey From First Signal to Qualified Opportunity
Start by mapping the journey a potential customer takes from the very first signal through to a fully qualified opportunity.
Keep it simple and specific. For example:
- Anonymous engagement (website visits, content consumption, events).
- Known lead captured (form fills, inbound enquiries, outbound response).
- SDR qualification (email, phone, video, social).
- First meeting or discovery call with an AE.
- Opportunity creation in CRM.
- Advancement to a clearly defined “qualified” stage.
For each stage, document:
- Who owns it – Marketing, SDR, AE, partner.
- What good looks like – in concrete, observable terms.
- What data is captured – fields, notes, scores.
- What triggers the move to the next stage – behaviours, information, approvals.
This gives you a shared baseline for where quality can be lost or created.
Look at Conversion Rates, Not Just Volumes
Lead volume can hide a lot of problems.
To diagnose lead quality issues, look at conversion rates between key stages, such as:
- Lead → engaged lead.
- Engaged lead → meeting booked.
- Meeting booked → opportunity created.
- Opportunity created → qualified opportunity.
- Qualified opportunity → closed-won.
Slice these by:
- Source – paid search, organic, outbound, referral, partner, events.
- Segment – ICP vs non-ICP, industry, size, region.
- Rep or team – SDRs, AEs, territories.
You are looking for patterns such as:
- Channels that generate lots of leads but very few opportunities.
- Sources with lower volume but much higher conversion and deal value.
- Reps with very high opportunity creation but poor win rates.
These signal where lead quality is weak – or where qualification practices are misaligned.
Combine Data Analysis With Real Conversations
Data alone won’t tell you why lead quality is breaking down. Combine it with conversations and call reviews.
Talk to:
- SDRs and BDRs
Ask which leads feel genuinely promising, which feel like noise, and what patterns they see by source or campaign. - AEs
Ask where they see weak opportunities entering the pipeline, and which early signals usually predict a no-decision or loss. - Marketing
Ask which campaigns or assets were designed for which segments and intentions, and whether the actual responses match that design. - Customer Success
Ask which customers become advocates and expand – and which were marginal fits from day one.
Listen to recorded calls at early stages:
- First inbound response calls.
- Discovery calls on new opportunities.
- Handover calls between SDRs and AEs.
You’ll quickly hear whether the right people, problems and contexts are present – or whether opportunistic deals are being pushed forward to hit activity or coverage targets.
Identify the Specific Failure Modes in Your Funnel
As you look at data and listen to conversations, you’ll start to see recurring failure modes. Common ones include:
- Wrong account fit
Leads are coming from organisations outside your ICP – wrong industry, size, model or region. - Wrong person fit
Engagement is concentrated in roles that are too junior, too peripheral or too far from the problem you solve. - No real pain or urgency
Conversations stay vague and conceptual; there is interest but no compelling reason to act. - Qualification inflation
Reps progress weak opportunities to maintain pipeline coverage, even when key criteria from Step 1 are missing. - Handover gaps
Important context gathered by Marketing or SDRs isn’t captured or transferred, so AEs repeat discovery or miss key threads. - Slow or poor follow-up
High-intent leads wait too long for a response or are routed to the wrong person.
Document these failure modes with real examples from your pipeline to make them concrete.
Separate Source Problems From Process Problems
Not every lead quality issue is about the source. Many are about what happens after the lead arrives.
Ask two distinct questions:
- Are we attracting the right people?
If not, you have a targeting or messaging problem. - Are we handling the right people well?
If not, you have a process or skills problem.
For example:
- If high-intent demo requests from ICP accounts convert poorly, the issue is likely how those leads are handled – response speed, discovery quality, value articulation.
- If you see a mountain of content downloads from non-ICP segments that never convert, the issue is more likely targeting and messaging.
Separating these prevents you from trying to fix a process problem with more marketing spend, or vice versa.
Use a Simple Funnel Health Review With Your Leadership Team
Turn your diagnosis into a structured conversation with Sales, Marketing, RevOps and Customer Success.
Create a simple “funnel health” view that shows, for each major stage:
- Conversion rate.
- ICP mix (what percentage is true ICP).
- Source mix (top three contributing channels).
Then discuss:
- “Where are we seeing lots of activity but little meaningful progress?”
- “Where are small volumes creating strong, high-conversion pipeline?”
- “Where are we carrying ghost deals – opportunities that haven’t moved in weeks or months?”
This quickly surfaces the areas where lead quality is genuinely weak, and where it’s a perception issue driven by incomplete data.
Link Breakdown Points Back to Your Qualification Model
Now connect your findings back to the qualification model you defined in Step 1.
For each failure mode, ask:
- Which ICP or IBP criteria are missing or misunderstood?
- Where are we ignoring our own qualification standards to protect coverage or activity metrics?
- Do reps and managers have the tools and questions they need to qualify effectively at that stage?
For example:
- If many opportunities are stuck early in the process, check whether pain and intent were truly validated at creation – or whether deals were moved forward based on interest alone.
- If deals frequently stall just before commercial discussions, check whether the buyer group was fully mapped and engaged.
This exercise turns diagnosis into clear hypotheses for improvement.
Prioritise 2–3 Areas to Fix First
You will almost certainly find more issues than you can tackle at once. That’s fine.
Prioritise 2–3 areas where improving lead quality would have the biggest impact. For example:
- Tightening qualification at opportunity creation for a particular segment.
- Improving response time and call quality for inbound demo requests.
- Cleaning out ghost deals and enforcing clearer exit criteria from early stages.
For each priority area, agree:
- The specific behaviour that needs to change.
- The owners (Marketing, SDR, AE, manager, RevOps).
- The metrics you’ll watch for improvement.
You can then use later steps in the series to shape messaging, channels, discovery skills, scoring and culture to support those changes.
How Step 2 Supports the Rest of the Journey
Diagnosing where lead quality is breaking down turns a vague sense of “we need better leads” into a focused list of problems you can actually solve.
It underpins:
- Alignment between Sales and Marketing on what to change and why.
- Decisions about which campaigns and channels to scale up or down.
- Where to invest in training, coaching and enablement.
- How to refine scoring, routing and SLAs.
Most importantly, it stops you from chasing more volume in the dark.
Use this article alongside the main guide on how to inject more qualified leads into my pipeline to structure your next funnel review, identify where quality is leaking, and focus your efforts where they will make the biggest difference.
