Um sales funnel is a graphical representation of the negotiation steps prospects, leads, and customers to close the contract. The logic is that, regardless of the strategy, at each stage, some contacts give up the negotiation, tapering the format of the representation.
Contrary to what many sellers or managers can talk about, selling is not magic or having a number of tricks to get your customer to buy. Selling is a numbers game that can be organized in a process with well defined steps.
This process is known as Sales Hopper and is used control the monitoring of negotiations and prospecting of clients. As this process suffers losses along the way, that is, the number of sales made will always be less (or equal) to the number of opportunities that arise. So the analogy with a funnel:
First of all, let us understand the trajectory of a person until he becomes a client of any company by the model AIDA (attention, interest, desire, action), developed by Lewis:
Basically the 4 model has essential steps:
- Attention - people know your product or service
- Interest - pay attention enough to know benefits, specifications and features
- Desire - have enough interest to want to buy the product or service
- Action - they actually buy the product or service
Although it is a simplification, it is a very useful simplification that brings us closer to a process model where the client goes through some stages. This will be the basis for the development of the sales funnel.
The standard sales funnel model illustrates exactly the path your customer travels to buying your product. This trajectory is divided in some steps that have a strong relation with the AIDA model:
- Step 1 - Prospecting the customer - where you will call the attention his
- Step 2 - Show Product - where you wake the interest and culture present in western Sicily ".
- Step 3 - Negotiate - where you make the desire increase customer
- Step 4 - Close Business - When you encourage him to take the action of purchase itself
This model has become increasingly important because it allows you to better understand the success metrics of each step and to be able to act precisely by improving points that are not performing well enough.
Assuming as an example a consulting firm, we would hypothetically have a client coming into the site and filling out a contact form talking about the needs it has. From there a salesperson (or consultant) would contact.
Differences in an Ecommerce
When we talk about sales funnel related to ecommerce, there are some important differences in relation to the steps we have just shown that are worth understanding. In any business where you have direct contact with the customer some steps will involve phone contact, face-to-face meetings and negotiations.
In the sales funnel of an ecommerce all this direct contact does not exist and the steps change a little. In the process below we have Home> Search> Detail (enter the product page)> Cart> Checkout> Confirmation (purchase).
This model is a bit more complex than necessary. Normally in Light we measured some other steps:
- Head to
- Leads Acquisition - When you get user email
- Opportunity - when the lead shows some interest in your product. In the case of LUZ, it is when he downloads a demo of a spreadsheet
In this model, it is possible to measure the key metrics related to our site and the behavior of users who visit it.
If you plan to start organize the stages of your sales process it is good that you understand very well how your customers buy from you. This is a pre-sale job that will help you in the next steps we will show. In that sense it pays to answer some questions like:
- Who makes the decision (himself, boss, woman) to buy?
- What is the demographic profile (gender, age, income) of the client?
- What social class?
- What kind of content (newspapers, magazines, internet, etc.) does it consume?
- Where do you get access (associations, company, places you visit) to it?
One legal tool I recommend for this process of understanding who your client is is the map of empathy:
If you have been able to understand the profile of your key customers, you are ready to structure the steps in your sales funnel. There is no right rule, but try not to get too far from a funnel between 4 and 7 steps. Remember, the more steps, the more complicated it will be to measure and follow the process all the time.
The first stage of every sales funnel is the prospecting clients potential. Here you can have one or more ways to get to it. As we speak there is no magic formula and no right process. It all depends on your reality and who your target audience is. Much of content marketing has been used to get more potential customers.
This first contact can be done in different ways:
- Organic searches on Google (SEO)
- Social Networks
- Email Marketing
- Paid media (adwords or advertisement on websites)
- Newspapers, magazines and portals
- Participation in events
- Posts in a blog
- Free Ebooks
- Explanatory videos
After this first contact, the intention is to get an email or phone so that the contact can return. From the moment you have a contact from your prospect, he becomes a lead. To understand more about attraction and conversion of leads, you need to read about inbound marketing.
Before you get upset and get in touch with all your leads in a next step of your sales funnel, know exactly which to dispense. I say this because it can be very laborious and unrewarding to get in touch with people who have no interest in what you want to sell. THE separation of hot and cold leads It will help you a lot in the day to day.
To decide which leads are good and which ones are bad you need to understand their reality. Usually this is done with statistics and have a customer prospecting worksheet or software can help you a lot.
For example, by analyzing your past sales, you realize that 80% of your customers are large companies, above 1.000 employees. Is it worth directing your sales team's effort to companies of less than 10 collaborators?
The first contact can be made in many ways, from a call or chat on the internet to a face-to-face meeting or call by skype. Anyway, the most important thing here is:
- Understanding your client's need (knowing the profile of your target audience and having qualified leads helps a lot)
- Learn in detail how your competitors work (so you can talk about services or products that they've used or intend to use)
- Know the profile of your client and the most interesting type of communication to have with him
- Ask the right questions
If you do this process well done, it will surely be closer to moving to the next step of your sales funnel.
Decision and Follow Up
Depending on the type of company you have, at that time you will submit a proposal with numbers and scope of what will be done or delivered. If the client had a good conversation, this is the time to show effectiveness.
For this, remember that some things count a lot:
- Quick answers, by email or phone.
- Putting into practice possible customer requirements (changes in the scope defined above).
- Make sure your price is competitive compared to competitors.
This is the final part. An important detail is to make sure that the expectations related to term, delivery and quality of the product or service are aligned. Some companies have longer trading cycle. It's normal. Set deadlines to maintain contact with your lead and try to understand your purchasing influences.
If you make and monitor multiple leads, you will have a result that will allow you to determine what percentage of leads that result in sales and what you need to increase your sales. If you conclude that 1 of each 20 people you connect realizes the purchase, you know you will have to make 100 connections to carry out 5 sales.
If you want to double your sales the following week, you'll have to make 200 leads in that part of your sales funnel. Monitoring the results is a way to let you (or your sales force) less discouraged with rejections. And it can also help you determine the effectiveness of changes in your sales forms, evaluate sales training results, and serve as a goal you always have to overcome.
If you really want to optimize your performance, it's good that you know how to answer these questions:
- Is your sales funnel structured in the best way?
- Are the people you contact the best leads?
- Does your solution solve flaws that your competitors' product or service does not solve?
- Are you measuring the performance of each step?
I believe that if you follow these steps you will be closer to having a more organized sales process and funnel and converting to better results.
How is your sales funnel?
Share with us what are the steps of your sales funnel in the comments. If you can tell the percentage in each step will be even more interesting!