This week we are going to get into something that I am very familiar with and some of you might be too that is the sales funnel and the sales process.
It’s Easy to Understand
We are going to dive into the sales funnel and the sale process and how to manage and use it to make your sales grow.
Many people have never done any kind of sales before probably don’t know how it works or what it is.
If you don’t understand the sales funnel and process, you might get discouraged when you’re first starting your business.
Let Me Dispel a Myth
Sales is a fun thing if you go into it with the right mindset. Some go into it thinking that everyone they talk to and see will open their wallets to them. If you think this, you have some hard knocks coming.
Starting a home-based or online business and selling your products or services will bring with it a ton of rejection.
If you anticipate that rejection and get to the yes’s, you are set and on your way to success.
If on the other hand, you’re discouraged to be told no or when you don’t close a deal, then you’ll find yourself giving up before you have a chance to see success.
Sit back and relax, because in today’s blog I’m going to lay it all out for you…
What is the Sales Funnel and the Sales Process?
I’ve sold for years, and the sales funnel is something I use every day to keep me on track.
We’re going to talk about what it is and why its important in your business. This applies even if you are a one-person show in your home-based or online business.
The sales funnel and the sales process is a way to guide your leads from your niche market. Take them through the sales process to get the most customers to come out the bottom end.
If you don’t understand the sales funnel and the bigger picture that’s the sales process, its easy to become discouraged. This is hard when you’re starting or working on your home-based or online business.
Setting up Your Sales Funnel and The Sales Process
Setting up your own sales funnel will allow you to see your sales process from the top. This starts when you find prospects to call through to the bottom end when some turn into customers.
When setting up your sales funnel, you’re defining how the sales process works for you, and for your niche market.
Some companies will need to get a prospect, and turn them into a lead. They set up the first appointment, produce a quote, close the deal, then add them as a customer.
Whereas others may need to get a prospect, turn them into a lead, and set the first appointment. They create a presentation and have another discovery meeting. After deciding on a package that fit the needs and budget of a customer, they produce a quote. Finally, they close the deal, then add them as a customer.
As you can see in the examples, the sales funnel, therefore the sales process looks different for each of them.
Metrics and Goals
The sales funnel and the sales process will help you establish your metrics and goals. This will increase your success rate in sales.
As a business owner, especially those starting out and having never done sales before, you’ll find rejection is one of your greatest frustrations.
Many people don’t like to hear the word no, and you will a lot when you sell.
In the sales funnel, you start at the top with a lot of leads that you find.
If you would like help finding prospects, I’ve covered this in previous blogs.
You can also jump over to my podcast at mcfallri.com/podcast if you want to listen instead.
How the Sales Funnel and Sales Process Works
As you add leads to the top of the funnel and work them, some drop off at each level.
You call leads and some of them will become prospects. Some of them will set up initial appointments or calls with you, and some will want a presentation or proposal.
Out of those, some will want to set up a closing appointment or call. Finally, some of them will say yes to your offer and give you money to work for them.
Point being that throughout this process you will have any number fall off the list. This is why the funnel is shaped the way it is and called a funnel.
As you work leads through the funnel, a great thing will start to emerge when keeping track of your activity.
When you have done sales for a while and stuck to your process as defined by your sales funnel, you can start to take that data from your metrics.
You’ll be able to see how many leads you need to get a prospect. You’ll know how many prospects you need to contact to get the first appointment, so on and so forth.
Getting to the bottom of the funnel, you’ll know how many leads you need to find to get one customer.
So, what does this all mean and how does it work?
Start at the top with your leads, this is the big list you’ve put together based on your niche market.
Your niche market is the people that you want to contact based on location, and type of person or business. Then the size of business or age of the people, and other things that you’ve defined as your ideal customer.
From this description of your niche market, you find those people that fit your niche to make an initial contact.
Then you determine the steps to take them from a lead to get them to become a paying customer.
Each Business is Different
As I said earlier, determine your steps in your process for your business, then this becomes your funnel.
When you starting working your funnel, you may find that you may need to tweak it, and that is fine.
Make sure you keep track of your activity through the funnel then as you do each step with each lead.
You should set an arbitrary number of calls to leads you need to make in the beginning, this your goal.
The Outcome of Measuring Your Numbers
After a few months of doing this, you’ll start to see real numbers. It will tell you how many leads you need to get one customer. These numbers measure all the activity you do in between. With these numbers you can see where you need to work on.
Sales is a numbers game and you will throw in a lot leads at the top of the funnel. Some of these leads fall out through the sales process.
The goal is to know how much you need to throw into the top. This correlates with the number of customers you want to come out of the bottom.
Use the Sales Funnel and the Sales Process for Success
Set up your funnel and the sales process based on the steps you need to do to turn your leads into a customer.
To be successful at selling, you have to use your funnel to layout the steps in your sales process. Keep track of each lead through the sales process. Keeping track of the number of leads dropped in each stage of the funnel is telling. You will know how many leads you must have to get one customer in the bottom of your funnel.
Set up a system to keep track of your activity. You can gauge the amount of leads you have to work through the funnel to get a customer.
This can be a spreadsheet you put in your weekly numbers into. Also have a tally page to accumulate all your numbers.
Over time, you see the amount of activity you must do in each step to get a new customer.
Set Your Goals
You set your goals based on real data. If you want a certain number of customers you will have to get a certain amount of leads.
Find the steps in your sales funnel and the sales process you are weak at and improve on those areas to get better results.
The more you improve in each area, the less you will lose in that part of the funnel.
If you want to be great at selling, you must have a system in place to help you do better.
The sales funnel is designed to help you set up a process. It lays out the correct stages you use in your home-based or online business. If you use it, you will easily sell products or services to customers.
If you set up a system and process, you’ll know what you need to do to get a new customer. Set up metrics to collect information about your work through the funnel.
You may find that you have to get 50 leads in the beginning to get one customer. As you get better it may be only 10 leads.
If you want a great course on this very topic and more, get our home-based and online business course. Find it at www.mcfallri.com/slscrs
I hope you learned a lot about the sales funnel.
When it comes to selling, don’t be discouraged, rather look at it as a fun challenge.
Think of it as if you are a gold miner digging for gold. Your mission is to get through all the dirt to find your golden nuggets.
If you use the sales funnel and have a great process in place, you can manage the numbers. You will set goals for yourself, and have some customers come out the bottom of that funnel.
Want your own free copy of our home-based and online business course?
Go to mcfallri.com/slscrs and get yours today!
We cover –
1) What type of business should you set up?
2) How to determine your niche market.
3) How to set your marketing and sales.
4) How to set up your business as a legal entity.
5) How to get your first sale.
Disclosure: Bear in mind that some of the links in this post are affiliate links and if you go through them to make a purchase I will earn a commission. Keep in mind that I link these companies and their products because of their quality and not because of the commission I receive from your purchases. The decision is yours, and whether or not you decide to buy something is completely up to you.
This article was also featured on Ideas Plus Business at: https://ideasplusbusiness.com/sales-funnels/