Sales Funnels in your online business are becoming more and more popular. It is no longer
a case of creating a single online product and selling that product. Online business has now
realized the potential of increased income with a sales funnel model.
We make use of the metaphor of a sales funnel (wide at the very top, narrow at the
end) to monitor the sales process.
Towards the top of this funnel you've got 'unqualified prospects' - the people who you
believe may need your service or product, but to whom you've never spoken. At the
end of this funnel, many delivery and sales steps after, you've got those who've
received the service or product and have also purchased it.
The metaphor of a funnel can be utilized because prospects drop out of different
stages of an extended sales process.
Using the sales funnel, and by calculating the amount of leads at every point of the
procedure, you are able to predict the amount of prospects who'll, over time, become
A lot more than this, by taking a look at how these amounts change with time, you
are able to spot issues in the sales pipeline and just take corrective action early.
For instance, in the event that you spot that not many mailings were actioned during
a month, you may be expecting that, in a couple of months time, sales may dry out.
The following month, you can ensure that more mailings than usual are sent.
Utilization of the Sales Funnel shows obstacles and dead time, or if they're an
insufficient quantity of leads at any point. This knowledge enables you to decide
where sales agents should focus their attention and efforts to help keep sales at the
required level and, also, to satisfy targets.
The funnel may also explain where improvements have to be implemented in the
sales procedure. These might be as straight-forward as introducing extra sales
coaching or making certain sales reps put adequate emphasis on each step of the
The very first stage in establishing sales funnel reporting would be to brainstorm the
sales process together with your sales and marketing people to make certain that it
is correct and comprehensive.
Out of this, find out the main sequential parts of the sales procedure and, from these,
generate status codes. Then, label your leads using these codes (this is easier when
you've got a sales contact management system). Finally, work-out the amount of
prospects of every status and calculate the change from the last month.
As you develop an image of a sales funnel from every month, you can begin to
comprehend where you are able to enhance your sales process. Obviously, a
product is required before you can start to sell anything though, and this is what we
are going to discuss in the following chapters.