Sales Funnels is a barometer which can help any Seller gauge the quality as well as quantity of work in progress (WIP) in the function of Sales. All those of us who believe that if the “Inputs” in Sales is strong enough, the “Output” has to be great, this blog gains a lot of importance as it is directly linked to results in sales.
Input in Sales determines Output in Sales.
Managing Inputs in Sales will ensure Outputs in Sales.
The question is
How do you manage inputs in Sales?
The answer to this is Sales Funnel.
The Structure of Sales Funnel
- If you share lead magnets with 100 Suspects, 25 of them will become Prospects.
- Out of every 25 Prospects that you contact, 15 will show interest to buy. (Marketing Qualified Lead)
- These MQL will slowly become Sales Qualified Lead (SQL= Willingness to buy + Capability to buy + urgency to buy). The latter in turn will become BANT leads (Budget, Authority, Need, Timeframe)
- Out of 10 BANT leads, 6 will ask for a proposal.
- Out of 6 Proposals sent to leads, 4 will call for negotiation.
- Out of every 3 negotiations in progress, 1(One) will close for final delivery
The numbers mentioned above are just examples. The moot question here is that do you have a structured sales funnel defined in your business?
How to build a Sales Funnel?
Step 1: Build Suspecting Silos relevant to your business.
Step 2: Populate the Silo table with Suspect data points
Step 3: Create lead magnets for each silo and share the same with them with a structured “Call to Action”
Step 4: Prospect each response and convert them into leads
Step 5: Farm each lead into proposal followed by negotiation and sales order.
Monitoring Sales Funnel Ratios
Following ratios needs to be monitored on a regular basis:
- Suspect : Prospect Ratio
- Prospect : Lead Ratio
- Lead : Proposal Ratio
- Proposal: Negotiation Ratio
- Negotiation: Order Ratio
For every industry there are some standard yardsticks for each of these ratios mentioned above. If the yardstick is in place, the only thing you have to do is to check compliance to the standard sales funnel ratios that your sales team is able to achieve.
Pushing the Sales Funnel Downwards
The only way to push all leads getting into the sales funnel to produce more and more orders is to keep on adding more and more leads into the sales funnel. To add more and more leads, one has to maximise the suspecting and prospecting initiatives.
In the final analysis the success of the sales funnel depends on how well you turbocharge your Suspecting engine.
In a nutshell
- Turbocharge your Suspecting Engine.
- Handhold all your prospecting response with utmost care.
- Avoid leakages in your sales funnel.
- Ensure that the closing ratio is under your control always.
- Farm your leads well.
Take pride in your Sales funnel and flaunt the same to anyone with whom you talk about your sales function.