Sales Funnel: Why does it matter?

Sales funnels consist of smaller steps that lead to a sale, not one huge leap from engagement to purchase. In most cases, brands and businesses fail to plan for the small conversion required to lead a prospect down the conversion funnel successfully.

Econsultancy reports that only 22% of businesses are satisfied with their conversion rates, while the remaining 78% are less satisfied with their overall performance. A sales funnel that's streamlined and engaging could improve user experience as well as revenue performance.

Funnel Analysis: A must in sales and marketing strategy

The strength of your digital marketing strategy depends on how well you manage your sales funnel. The sales funnel shows how your company guides prospects through their sales process in order to convert them into customers. A thorough funnel analysis will help you pinpoint when and where prospects are dropping out of your sales funnel and determine what changes need to be made to increase conversion rates.

You can perform a funnel analysis to measure and visualize how prospects move through your sales funnel and how their choices and steps align with how you want your sales funnel to perform. Funnel analyses help you understand your prospect base with clear percentages and drop-off rates.

Drop-Offs: How to identify?

The optimization of conversion funnels and the identification of drop-offs are essential aspects of sales and marketing. There will be a percentage of leads in every sales funnel that don't make it to the bottom of the funnel or drop out early on in the process for various reasons. There is no perfect conversion rate within reach, but there are actionable steps that can be taken to increase your conversion rate by decreasing prospect drop-offs. Investigating the "where" and the "why" of prospect drop-offs will help you formulate more engaging calls to action during each phase of the sales funnel.

You can track your website metrics and identify where prospects are leaving your sales funnel using Google Analytics. You should set up your sales funnel in Google Analytics to measure these drop-offs effectively. Activate "Funnel Tracking" in Google Analytics, and it allows you to track drop-offs throughout your entire conversion funnel to identify where prospects are leaving your website for easier conversion optimization.

For a visual representation of your Sales Funnel in Google Analytics, click on "Conversions" and then "Goals" you will be able to find the "Funnel Visualization" option. Details can be viewed, but it is dependent on how long Google Analytics takes to collect statistics about your site (if you have a high-traffic site, wait a day or two).

Final thoughts

Every funnel leaks.

The most important thing is where, when, and how the funnel leaks. Figure out the best action for the right leak by digging a little deeper. Following are some actions you can take based on the situation in your business.

If you have an Early-Stage leaking funnel:

• Validate the opportunity qualification process and criteria. Avoid early qualification of deals.
• Follow up with new customers promptly and thoroughly. Don't ignore them in favor of warm deals from existing customers.
• Ensure lead generation activities are focused on the right target customers.

If you have a Late-Stage leaking funnel:

• Make your investigation stage better. Stop salespeople from chasing deals that are unlikely to succeed.
• Establish your ideal customer and develop a framework for assessing potential deals
• Identify all stakeholders. Be sure that key stakeholders are not being left out of the communication process.

Grow better with Zooloo, we are happy to help you get started with digital transformation, please contact us at sales@zooloo.asia.

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