According to a study, more than 570k websites use a sales funnel, through a funnel-building technology.
For a business, the only way to grow is by beating the competitors' sales track. Without sales, there will be no profit or revenue and businesses will collapse in no time. To maintain a constant flow of sales, marketers and sales experts use various tactics and technologies. Sales funnel is one of those ways to generate sales.
In today's blog, we are going to explore the sales funnel in detail. The topics we'll cover are - an overview of the sales funnel, how it works and how to manage the sales funnel for better lead capturing. So keep your notepads ready because we'll be discussing a lot of important details. Let's go!
What is Sales Funnel - Detailed Overview
A sales funnel is used to describe a potential customer's journey from getting to know about a product/service to the final purchase. The sales funnel is often presented as a series of steps, each representing a different stage in the process.
The first stage, known as the top of the funnel, is where most customers become aware of the product/service. The centre of the funnel is the point at which customers engage with the product/service. The engagement could be through any Internet source such as social media, blogs, etc.
The bottom of the funnel is where customers make their purchases. While each lead's customer journey is unique, understanding the sales funnel can help companies better focus their marketing efforts and increase sales. In other words, understanding and managing the sales funnel right can boost sales extensively.
How Does a Sales Funnel Work?
The sales funnel is a visual funnel that represents the different stages of the sales process. At the top are the suspects. This includes the leads, prospects, customers and possibly returning customers. The sales funnel gets narrow as it goes down because during the sales process more and more potential customers drop out. You can understand the narrowing part better through the image given above.
The final target group that proceeds to purchase (conversion) is only a small part of the target group with a need. The rest will go to the competitor, abandoning a purchase journey. So the funnel shows the entire sales process. It starts with the marketing funnel and halfway through the funnel it turns into the sales funnel. Together they form an online marketing funnel.
The marketing funnel and the sales funnel are closely linked to the customer journey. It is the path that the (potential) customer travels from the first need to far after the purchase. The marketing funnel and sales funnel to show the sales process from the perspective of the organisation. The customer journey also shows the sales process from the moment of need (awareness) to loyal customers (loyalty).
How to Manage Sales Funnel to Capture Leads Effectively
Sales funnel is undoubtedly a great way of targeting and converting potential leads. But for a sales funnel to work effectively, it needs to be managed the right way. Here's how you can manage the sales funnel to capture leads effectively:
Use a Sales CRM System
A sales CRM is the best way to ensure the success of all the stages of your sales funnel. A CRM is a lot more than just software to handle basic customer data. It's also an excellent solution to track your potential leads as they step up in the sales funnel, to convert into paying customers.
Moreover, you can also automate sales funnel tasks such as marketing campaigns, saving you considerable time. Moreover, a sales CRM can also help you measure processes at various stages, and assist you with personalised customer experience. In short, it offers an extensive workable system to manage your sales funnel strategies.
Provide Regular And Adequate Training
An efficient sales team will never stop learning, training and developing. The opportunity to try new technologies and participate in growth opportunities should be available to everyone. Especially the training and learning part. That’s your responsibility, as a business owner or manager.
Using a sales CRM, you can get useful lead data. Use the insights into the data to implement new training methods. It's you who have to make sure your sales team remains top-notch and updated with their knowledge. Consistent training can do that, which at the end of the day results in an efficient sales funnel.
Target Only Qualified Leads
Targeting every single lead that comes into your sales funnel will gain you nothing. This is where your sales team's training and experience will help to identify strong prospects. By strong prospects, we mean potential leads with the highest conversion rate.
When it comes to the sales funnel, most brands target and nurture every lead that comes into their funnel. Instead of doing so, you will get better results by targeting qualified leads. So spend time identifying leads with greater conversion rates and target them for better sales results.
Get Rid of Roadblocks
Roadblocks refer to points or incidents in a sales funnel that stops the smooth flow between multiple funnel stages. Things that can cause roadblocks could range from spending an unnecessary amount of unsure leads to wasting resources and time on target areas with the least expected results.
You can use technologies like sales CRM to understand your target geographic areas where you are flushing resources and energy. These are the areas that will act like roadblocks therefore their timely identification and resolution are important.
Final Words
Sales funnel could generate lots of potential leads and improve your sales exceptionally. As wonderful as it might be, a sales funnel could be of no use if it doesn’t get you leads. And believe us, an improperly managed funnel has a low sales rate compared to a well-managed one.
In today’s blog, we have explored all the details about the sales funnel, including practices to well-manage it. If you want your funnel to offer optimum and efficient results, implement these practices fast.
Lastly, if you enjoyed reading this blog, don’t forget to share it with your business friends. Learn together, grow together.
