The sales funnel method tracks the journey through which a potential customer becomes a customer. The reality is that not every lead will end up making a purchase. Certain leads will lose interest at each stage of the process. The best way to visualize this is by using the sales funnel method.
The initial leads are those who have shown awareness and interest in your product or service, for example by signing up online – these are prospects. It is essential to get in touch with prospects on the phone or via email as quickly as possible. Studies show that leads that are contacted within the first 5 minutes of completing a web form are significantly more likely to become customers.
When communicating with prospects, it is important to identify their problems and needs and let them know exactly how your business can solve them.
A successful salesperson educates their lead about the benefits of what they are selling, rather than purely explaining its features.
During the first interaction, the salesperson needs to qualify the lead, i.e. ensure they have the interest and authority to purchase the product or service. The salesperson must stay in control, and inform the customer of when they will next be hearing from them. For tips on how to qualify a lead, check out How to Qualify Leads: BANT and Beyond.
Once a lead is qualified, the next conversation involves showing and explaining the product further. Some companies offer demonstrations, and others arrange in-person meetings. If they continue to show interest, the next step is to make them a proposal. Once a proposal is accepted, the lead has successfully been converted into a customer. For tips on how to close deals, check out 5 Tips for Closing a Deal.
The best way to make sure leads stay inside the sales funnel until the end is to constantly create and act upon a task for each deal. The moment a deal is left unattended, with no action, it is effectively lost. With Breezz CRM you can add tasks to each deal, and set reminders to follow up on them.
When you move a contact up the sales pipeline in your CRM, think of them as remaining inside the funnel.
With CRM platforms you can record the reason why a deal was lost. This data can provide valuable insights into what not to do when trying to convert a potential customer. For example, a lead has left the sales funnel because you took too long to get back to them and they ended up going with a competitor of yours. How can you prevent this from happening? Next time, make sure to create tasks within your CRM as reminders to get back to your prospective customer as soon as possible.
The more customers you gain, the more your business can grow. To this end, remember the sales funnel diagram when converting prospects into customers, and keep following up on your leads.