What is a Sales Funnel - Act! CRM

A sales funnel is the process prospects go through to become a customer. Each stage of the funnel takes the buyer one step closer to making a purchase. Skiptocontent Whatisasalesfunnel? Understandwhatasalesfunnelisandhowitcandefineyoursalesprocess 1.Salesfunnelexplained:Howdoesitwork? 2.Whydoyouneedasalesfunnel? 3.Whatarethestagesofasalesfunnel? 4.HowdoIcreateasalesfunnelfromscratch? 5.HowdoIoptimizemysalesfunnel? Morequestions?VisitourLearningCenter StartCreatingMoreMeaningfulRelationshipsWithAct!Startyour14dayfreetrialtoday.Nodownloadorcreditcardrequired.StartFreeTrial Asalesfunnelistheprocessprospectsgothroughtobecomeacustomer.Eachstageofthefunneltakesthebuyeronestepclosertomakingapurchase.Awell-plannedsalesfunnelwilldefinetheactionsyourbusinessneedstotaketopushprospectstothenextstage. Thebuyingprocessisdescribedasafunnelbecauseitstartsbyattractingmanypeople,beforenarrowingthemdownuntilyouareleftonlywiththosewhobuyyourproduct.Thisdropoffisinevitable—youwillneverbeabletoconverteveryone.However,effectivefunnelswillturnthehighestnumberofpeoplepossibleintobuyers.Businessesshouldcontinuallyoptimizeandexperimentwiththeirfunneltomakeitmoreeffective. Salesfunnelexplained:Howdoesitwork? Everyoneofyourcustomershasbeenthroughaprocessthatendedwiththembuying.Thisprocessinvolvesthemdiscoveringyourbrand,findingoutmoreaboutyourproductorservice,decidingtobuy,andthenactuallydoingso.Forsomeproducts—typicallylower-priced,consumergoods—thisprocesscanhappeninamatterofminutes.Acustomermaybebrowsingsocialmedia,seeanadvertforapairofshoes,clickonthelinktoreadmoreabouttheproduct,decidetheyareagoodfitfortheirneeds,andthenbuythem.Fortheseproducts,thesalesfunnelisstraightforward,involvinglittlemorethananeCommercestoreandawayofattractingcustomerstoit.Although,acompanycanstilloptimizethefunnelbyprovidinganexcellentcustomerexperienceandcreatingopportunitiestoupselltheoriginalitem.Otherproductshavefarmorecomplicatedfunnels.Sellinghigh-ticketenterprisesoftwareofteninvolvesmultiplelayers,suchas emailmarketing,webinars,salescalls,downloadableresources,andin-personpresentations.Inthesecases,itcantakemonthsforabuyertogofrombeingaprospecttoacustomer.Thekeyistocreateasalesfunnelthatiseffectiveatguiding potentialcustomersthroughthedifferentstagesofthefunneltoapointwheretheyarereadytobuyyourproductorservice. StartCreatingMoreMeaningfulRelationshipsWithAct! Startyour14dayfreetrialtoday.Nodownloadorcreditcardrequired. StartFreeTrial 68%ofbusinessesfailtoidentifyandmeasuretheirsalesfunnels,whichresultsin79%ofleads neverconvertingintosales.1 Whydoyouneedasalesfunnel? Allbusinessesthatmakesaleshavesomeformofmarketingsalesfunnel,eveniftheyhavenotdefinedit.Awebsiteforaservicethatattractspeopleviaword-of-mouthisabasicsalesfunnel,asisusingsearchadstodirectpeopletoaneCommercestore.Whilesomebusinessesseesuccesswiththesestrategies,manyotherswouldbenefitfromcreatingafunnelthatbetterguidesusers.Theservice-basedbusinessabove,forexample,mayfindsuccessbycreatinganemaillistthatpeoplewhovisitthesitecansignupto,eveniftheyarenotyetreadytobuy.Theycanthenworkonnurturingleadsviaemailuntiltheymakeapurchase.Herearesomereasonswhyyoushouldcreateaneffectivesalesfunnel.AfocusedsalesandmarketingstrategyPuttinginplaceadedicatedsalesfunnelmeansyouarenolongerrelyingonascattergunapproachtosellingyourproduct.Instead,youhavelaidoutstepsandactionstotakeateachstageoftheprocess.Definingyourstrategyisthefirststep,andalltheotherbenefitsfollowonfromthis.MoresalesAsyoulearnwhichactivitiesresultinprospectsbuyingyourproduct,andwhichputthemoff,youcanfocusyoureffortsonsales-generatingactivities.Makingfewermistakescanleadtoyougettingmoresalesfromthesamenumberofprospects,aswellasgettingmorenewleadsintoyourfunnelinthefirstplace.Abettersalesfunnelcanalsohelpyouearnmorerevenuepersale.Forexample,byaddingasteptoyourfunnelthatallowscustomerstochooseadd-onsrelatedtotheirinitialpurchase,yourbusinessmaybeabletoearnmorepercustomer.IncreaseforecastaccuracyBytrackinghowleadsmovethroughyoursalesfunnel,yourcompanycanmakebetterpredictionsaboutfuturepurchases.Thiscanhelpyoumakedecisionsaroundcashflow,budgeting,anddemand.Ifyouknowthatonaverage10%ofpeoplewhosignuptoyourmailinglistultimatelybuyfromyou,youcanestimatehowmanysalesyouwillmakebasedonthenumberofnewsubscribersyougeteveryday.HigherprofitmarginsHavingadeeperunderstandingofyoursalesfunnelletsyoumakebettercustomeracquisitioncostestimates.Thiscanshowyouwhichmethodsofgainingcustomersarethemostprofitable.ImagineyouarespendingonbothGoogleandInstagramads.Ifyoufinditcosts$10togainacustomeronGoogleandonly$9toacquireacustomeronInstagram,youcanfocusonthelater,thusincreasingprofitability.Thisisasimpleexample,buttheideaissound:lookatwhereyouarespendingmoneyandwhatiseffectivetoreducecostsandincreaseprofitability. Youcanalsoincreaseprofitmarginsbytestingyourindividualsalesfunnelstages.IfyouA/Btesttwolandingpagesandfindthatoneconvertsatahigherrate,youcanincreasesaleswithoutspendingmoreoncustomeracquisition. Strugglingtoconvert? Betterleadmanagementcanhelp.Clickheretoreceiveyourcompleteguidetoleadmanagement. DownloadtheeBook Whatarethestagesofasalesfunnel? Abasicsalesfunnelhasthreestages:Topofthefunnel:AwarenessanddiscoveryMiddleofthefunnel:MiddleResearchingsolutionsBottomofthefunnel:MakinganeducatedpurchasedecisionThisisthejourneymostcustomerswillgothrough.AwarenessandDiscoveryDuringthefirststageofthesalesfunnel,theleadbecomesawareoftheirproblemandbeginstolookformoreinformation.Businessesneedtocreatecontentthathelpsthemwiththisresearchandthenpromoteitinplacestheleadislikelytolookforanswers.Someofthewaysyoucandosoinclude:SocialmediaadvertsGooglesearchadvertsContentmarketingandasearchengineoptimizationstrategy(SEO)BeingactiveonsocialmediaOutreach,suchasappearingonotherwebsitesorpodcastsAdsintraditionalmedia(T.V.,radio,billboards,etc.)Oncetheleadisonyourwebsite,usealeadmagnettoencouragethemtotakethefirststepinthefunnel.Thiscouldbeafreetrialofyourproduct,aninvitationtoawebinar,downloadablecontent,oranythingelsethatyouthinkmightconvincethemtohandovertheiremailaddresssosalescancontactthemlaterinthefunnel.ResearchingSolutionsDuringthesecondstageofthesalesfunnel,thesalesteamneedstofollowupwiththeprospecttolearnmoreabouttheirneedsandchallenges.Salesrepsmaycontactprospectsviaemail,phoneoronlinecalls,ormeetingstoaskthemquestionsthatwillhelpthemqualifytheleadandidentifyiftheirofferisagoodfit.Repscanthenpointthemtowardscontentthatshowshowtheproductorservicehelpswiththeirspecificproblem.Typesofcontentthatcanbeusefulatthisstageinclude:In-depthguidestotheproductChecklistsSocialprooforcasestudiesthatshowhowtheproducthashelpedsimilarbusinessesPurchaseDecisionDuringthefinalstageofthefunnel,theleadisreadytoselectasolutiontotheirproblem.Theroleofthesalesteamistogetthepurchaseovertheline.Theycanhelptheprospectfinalizetheirbuyingdecisionbyaddressinganyremainingbarrierstosale.Contentthatcanhelpatthisstageincludestestimonials,pricingpages,FAQs,andcomparisonswithcompetingproducts.Atthispoint,thesalesteammaymakeaproposalandnegotiatewiththeprospecttoensuretheygetadealoverthelinethatbothpartiesarehappywith. HowdoIcreateasalesfunnelfromscratch? Ifyourbusinessdoesnothaveadefinedsalesfunnelorifyou’rejuststartingout,you’llneedtocreateonefromscratch.Thesearestepsthatwillshowyouhowtocreateasalesfunnel.Thisisageneralizedguide—theexactstepsyouwilltakewilldependonyourproductandyoursalescycle.Itisworthnotingthatsalesfunneldefinitionsdifferfordifferentpeople.Forsome,itincludesallyourmarketingefforts,whileforothers,itisjustthefinalstagesofthefunnelthatdealswithconvertingthecustomer. 1.IdentifyyourtargetcustomerThefirstchallengetoovercomeishowtogetpeopleintoyourfunnelinthefirstplace.Considerwhoyourtargetcustomerisandhowtheyarelikelytofindyourproduct.Ifyouaretargetingexecutivesatlargecompanies,Instagramadsmaynotbethebestchoice.BecomingactiveonLinkedInmaybemoreeffective.Ifyouhavecreatedbuyerpersonas,nowcouldbeagoodtimetousethemasinspiration. 2.BringpeopleintoyourfunnelYoucanusealeadmagnettobringpeopleintoyourfunnel.Createanofferthatwillconvinceprospectstohandovertheiremailaddress.Thiscouldbeadownloadableresourcethatteachesmoreaboutthetopicofthepagetheylandedon,afreetoolthatcanhelpthemwiththeirproblem,ortheoptiontosignuptoyouremailnewsletter.Itisessentialthatyoutailortheoffertofitthemotivationofthewebsitevisitors. 3.NurtureyourleadsviaemailNowyouhaveanemailaddress;theprospectisinyoursalesfunnel.Thekeyistoconvincethemtogofromsomeonewhosimplywantedafreeresource,tosomeonewhoisconsideringyourproduct.Youcandothisbysendingyourleadsmoreinformation.Youcanusesalesand marketingautomationtools tosendcontentthathighlightshowyourproductsolvestheirproblem.Thinkaboutcasestudiesandin-depthguidestoyourproduct’sfeatures. 4.CreateaneffectiveconversionprocessAttheconversionstage,thekeyistogettheprospecttotakethefinalstepsinthecustomerjourney.Onewayyoucandothisistocreatecompellingsalespages,FAQs,andotherconversion-centriccontentthatsalesstaffcanshowleads.Thisisjustabasicoverviewofhowtocreateasalesfunnel.Foramoredetailedguide, checkoutourarticleonsalesfunneltemplates. Act!helpsyoubuildandoptimizeyoursalesfunnel TryAct!freefor14daysandfindouthow. Tryitfree HowdoIoptimizemysalesfunnel? Salesfunnelsareusefulbecausetheygivebusinessesandsalesteamsadefinedstrategytheycanusetogeneratesales.Onceyouunderstandthedefinitionofasalesfunnelandhavesetupthebasicversionofitforyourbusiness,youshouldcontinuetoaddtoitandtestittooptimizeeachstage.Herearewaysyoucanoptimizeyourfunnel.1.CreatemoretargetedcontentforeachstageofthefunnelWhenyoufirstsetupyourfunnel,youwilllikelydosoinageneralizedwaythattargetsahighnumberofcustomers.Forexample,togetemailaddresses,youmaycreateadownloadableresourcethatyoucanuseacrossyourwholewebsite.Amoreeffectivestrategyistocreatetargetedcontentforeithereachpageoreachsubsetofvisitors.Thiscontentismorelikelytoappealtospecificgroupsofpeopleand,therefore,getthemintothetopofyourfunnel.2.ExperimentwithnewstrategiesJustbecauseastrategyissuccessfuldoesn’tmeanthatitiseitherthebestortheonlymethodthatwillwork.Whileyoudon’twanttomoveawayfromthingsthatareworking,onceyourfunnelissetupyoucanstillexperimentwithotherstrategies.Forexample,whileyoumayfindthatsocialadsareaneffectivewayofgettingpeopleintoyourfunnel,youmaybeabletoattractadifferenttypeofcustomerbycreatinginformativeYouTubevideos,orbystartingtonetworkonLinkedIn.Dippingyourtoesintonewstrategiesallowsyoutotestwhethertheyhavepotentialand,iftheydo,pourinresources.3.A/BtestexistingmaterialA/Btestingisanimportantwaytooptimizespecificpartsofyoursalesfunnelbytestingouttwoversionstoseewhichisbetter.Imagineyouaredirectinguserstoalandingpage.Itisperformingwell,butyoufeelitcouldbedoingbetter.Insteadofswappingoutthelandingpageforadifferentone,abetteroptionwouldbetocreateanewlandingpagethatyouthinkwillbemoreeffectiveandthensendtraffictoeachpage.Youcanthentestconversionratesandseeifthenewpageactuallyperformsasyouthinkitwill.Ifitdoes,great.Ifitdoesnot,youcaneasilyswitchbacktosendingallyourtraffictotheexistingpage. Abeginner’sguidetosalesmanagement Areyoulookingtomastersalesmanagementandsuccessfullyleadyoursalesteam,butyou’renotsurehowtogetstarted?Downloadourfreesalesmanagementguidenow. Downloadtheguide Wrappingup Asalesfunnelhasmanybenefitsforbusinessesthatusethem.Theydefinesalesprocessesandallowsalesteamstooptimizeeachstepofthejourney.Thiscanultimatelyresultinmoresalesandprofitforyourbusiness.Hopefully,thisarticlewillhaveshownyouhowtobuildasalesfunnel.Ifyouneedmoreinformation,wehaveplentyofresourcesthatcanhelp.Checkthemoutbelow:3SalesFunnelTemplatestoHelpYouConvertLikeCrazyThe7StepSalesProcesstoHelpYouCloseMoreDealsTheSevenSalesCycleStagesHowtoBoostSalesforRemoteWorkTeams