No matter what method you use, your sales approach is only as good as the number of sales you receive. Every business needs to track its sales from the very beginning when initiating contact with potential customers to follow-up and results.
What the Sales Funnel Represents
A sales funnel is a useful concept because it is similar to the actual process of meeting prospects and moving towards a final sale. At the top where the funnel is at its widest point, you have numerous possibilities. These are often people you have never met and don’t even know if they are interested in your product or service.
As the funnel narrows, it is at this point that only those who are most likely to purchase your goods or use your sales continue on. At the bottom of the funnel are the people who completed the sale.
How a Sales Funnel Helps
A sales funnel can tell you information through objective data that will be useful going forward. Using a CRM system that allows you to include a large amount of information so that you can easily track statistics can enable you to see if there are any problems.
At its most basic, you can use a sales funnel to tell you at what point your prospects are dropping off. As you dig in deeper, you can determine what the problems are and why. You may discover that one or more salespeople have not reached out to potential clients or even current or past clients.
You may discover that the sales staff fails to initiate new contacts when they get busy with current customers. If this leads to times when you have fewer sales until the next round of contacts pass through the funnel, you may need to have staff focus more on continual follow-up.
The tool can also show you that enough initial contacts are being made but that second contact with potential customers is not as active as it should be. You can begin to address the problems you discover before they get more serious.
When the Sales Funnel Doesn’t Work
If your sales funnel isn’t functioning in a beneficial way, you need to look at the situation. You may not be using the right system or recording the correct information. If the resource you are using doesn’t allow for the data you need, it is time to look at new systems.
To understand what data you need and how to find the right sales funnel for your business, you must understand the sales process from the beginning to end.
You need to know what information is collected or what can be accessed and how it can be used. You must know what steps are performed throughout the process and why.
As the following article points out, as you track your data through the funnel, you will clearly see the actions you need to take to make improvements.
In the end, your business will grow and you will see the revenue increase when you know what changes to make in the sales process.
About the Author: Joyce Morse is an author who writes on a variety of topics, including business and marketing.