Why do companies spend so much effort to get their sales funnel right?
It’s the roadmap your prospects take to becoming customers. If you define this process, it becomes much easier to manage it. It lets you know where the flaws in your process are and gives you areas to focus on. Having one also makes it repeatable and easier to train up new reps.IMPLEMENT A SALES FUNNEL TO DRIVE FASTER GROWTH FROM YOUR SALES TEAM
What is a Sales Funnel?
A sales funnel is a visual representation of your customer’s buying process. It is separated into sections that correspond to steps in your sales process. Some sales process steps may be left out though as the only ones included in the funnel are the ones that are customer facing.
Example Sales Funnel
Here’s an example of how someone goes from a stranger to a customer. This is a simplified version of the sales funnel we use internally here at Lumo.
Top of funnel
This area consists of prospects who are essentially strangers. They may have interacted with your firm once or twice but they aren’t invested.
Leads: It starts in the leads section. Typically, sales teams will receive leads multiple ways. Your definition of what it takes for someone to become a lead will vary. We put someone in the lead category once they’ve interacted with our company. This can be through social media, a click to our website, interacting with our content, downloading content, filling out a contact form, etc.
Contacted: Next is where we move people once we’ve reached out to them. The bulk of our outreach is email-based so this move is simple to automate.
Middle of funnel
Prospects in the qualified to presentation sections are in the middle of the funnel. People here know about your business and they’re becoming interested in you and what you have to offer. This is where you build relationships and communicate the value you can bring.
Qualified: Move prospects to this section once you’ve had an initial conversation and once you’ve been able to tell if they’re in need of and able to buy your product or service.
Presentation: This section is for the prospects who you’ve presented your product or service to.
Evaluation: Unfortunately, you’ll see prospects drop out of the sales funnel at the presentation stage. It sucks but it’s unavoidable. The evaluation stage is for those who indicated continued interest in your product or service.
Bottom of funnel
This part of the sales funnel is for prospects who are now aware of you and your product or service. This is the spot where it’s time to break through that purchase-inertia.
Follow up: Move prospects to this section once you’ve had a successful follow-up conversation after the presentation. Give people a reason to want you to follow up though. We do this by providing a rough quote during the presentation and then working on a more detailed one together with them after they’ve had time to digest the benefits of the service.
Closed: This is where prospects become customers. Once they sign, move them to the closed section. This is the end for your sales funnel, but if your sales process is set up correctly, there will be more to do after this step.
Tips to Implement
Use a quality CRM to keep track of the prospects in each step of your sales funnel.
Match your funnel to your customer’s buyer’s journey.
Make sure that each stage has well defined entrance and exit criteria. This helps standardize the process across reps so everyone’s on the same page.
Measure conversion rates. This will let you find the “leaks” in your funnel and tell your team where to focus.