Howard Hubler Three important additions—about sales funnel automation and the right approach to data analysis.
Use a CRM system
A CRM system will help you automate your sales funnel. Enter all stages into it and run each deal through them sequentially. Then you will see:
- how many deals are at each stage;
- the conversion rate for each stage;
- the effectiveness of individual managers.
Don’t overcomplicate things
Don’t try to build a textbook sales funnel right from the start. If you are implementing a funnel into an existing business, divide the existing customer journey into approximate main stages. Your scheme will evolve as you work: you will understand how to tailor the sales funnel specifically to your own business.
Test and analyze
See how long customers stay at each stage of the sales funnel and whether it is possible to reduce the number of leads that drop out. The more leads you convert into deals in the shortest possible time, the more profitable your business will be.
Try new attraction tools and traffic channels, test your USP. To accurately track the effect of tests, implement one change at a time and see its result throughout the funnel.
Here are the key metrics to track:
- conversion at each stage — into leads, into purchases, into repeat purchases;
- customer acquisition cost;
- average check;
- customer lifetime value.
Important! Calculate separate metrics for each acquisition channel at each stage of the funnel. This will give you a complete picture of where everything is going well, where you need to push harder, and which channels to abandon altogether.
What to remember
A sales funnel is a model of the customer journey from product discovery to purchase. The sales funnel looks and is structured slightly differently for the company and for the customer.
Buyers follow the AIDA model:
- attention — the product has attracted attention;
- interest — the customer is looking for additional information about the product;
- desire — the customer wants to have this product;
- action — the customer buys the product.
For the company, the sales funnel is more complex:
- Forming a USP — reasons why people should buy this particular product.
- Collecting leads — contacts of potential buyers. This can be an email address, phone number, subscription to a newsletter on social networks or messengers.
- Generating interest — telling customers more about the product and presenting it in a favorable light.
- Addressing objections and concerns — dispelling any fears the buyer may have about the product.
- Closing the deal. Getting the customer to exchange “goods for money” — making a purchase and signing a contract.
- Repeat purchases, building loyalty. The company stays in touch with the customer and offers them more purchases.
To get the most out of your sales funnel:
- Use a CRM system. It will help you store all your transaction data and automate its processing.
- Don’t complicate the funnel at the start. As you go along, you will understand what to add or remove.
- Analyze metrics at all stages of the funnel. See at which stages you spend the most time processing leads or lose the most leads.
- Test one change at a time. Then you will be able to accurately track how it affected all subsequent stages of the funnel.
- Calculate metrics separately for each customer acquisition channel. This will help you understand where the most profitable leads come from.
With a sales funnel, you will know exactly where your customers come from and how not to lose them. Track your customers from introduction to purchase.
