The sales funnel is a vital tool for any business seeking to maximize conversions and increase revenue. This metric allows you to measure the entire sales process, from prospecting to customer loyalty. In this article, we´ll look at what a sales funnel is and how it works. We´ll also look at some tips for maximizing conversions.
The sales process
In simple terms, a sales funnel is a graphical representation of the sales process. It starts with the universe of prospects, i.e. all the people or companies you could sell your product or service to. Then, as you move through the sales process, the funnel narrows as not all prospects become customers. At the end of the funnel, some have made a purchase and may remain loyal to your brand.
Of all the people you could sell a product or service to, only 22% will be available or show some interest in it. Of those 22%, only 8% will buy. These numbers may vary by industry or product, but the key thing to understand is that the sales funnel narrows as you move through the sales process.
Long-term prospects
Salespeople must not only concentrate on prospects who show immediate interest. The key to success is focusing on long-term prospects. That is, those who are likely to buy shortly, such as in the next 6, 12, or even 24 months. If you have a database, you can also focus on those who will buy in the next five years. This is the market to target.
Sales funnel tips
To maximize conversions, there are some tips to follow.
First of all, you need to know your prospects origin. This way, you can find out which ones have higher conversion rates.
Secondly, you should identify which salespeople convert more according to the product or medium. For example, some salespeople may be more effective on one landing page than on another, or at selling a particular product. To maximize this, it is important to measure it.
Finally, automatic campaigns can be set up for prospects who are not yet ready to buy. These prospects are an excellent opportunity to generate revenue for the company in the future.
In conclusion, the sales funnel is an essential tool for businesses looking to maximize conversions and increase revenue. It is likewise advisable to understand that not all prospects convert into customers and that you should focus on those who are likely to buy shortly. By following a few simple recommendations, you can maximize the sales process and take advantage of every opportunity to generate revenue for your company.
Upnify´s Editorial Team; formed by professionals and experts in Marketing, Sales, Communication, Design and other areas. They share their experience through articles enriching the commercial culture.