Managing the Sales Funnel
Prospects and clients are the lifeblood of business. Whether the business is a storefront and service provider, online or business to business, clients and prospects keep the sales coming.
Managing prospects and clients needs a system. There are many customer relationship management tools out there on the market to do this. Before jumping in to any of them, you must have a clear understanding of the sales funnel - where prospects come from, how they become clients and what the client lifecycle looks like.
First into the funnel is the lead. Where do they come from?
...referrals
...online advertising
....word of mouth
...print ads
...walk by
...trade shows, events
....associations, memberships
Knowing where leads come from can help the business understand what type marketing works best for the business-model or at least eliminate time and money wasters.
Next, understanding in which part of the funnel the prospect is located. There are usually three phases or parts:
1. Leads that need to be worked. Not quite yet prospects, contact and follow up will determine if the lead turns into a prospect.
2. Prospects that need to be qualified. After understanding the lead has potential future purchase interest, the lead becomes a prospect. The work here is to determine how much time investment is required to close the sale. Get the prospect to yes or no before moving them out of the prospect segment.
3. Customers. Prospects who have made the decision to purchase are now customers/clients. Determine how to maintain follow up with customers so that they can provide leads and referrals, or continued purchase.
The keys to operating a successful funnel are to keep it full, and keep filling it from all sources, tracking and measuring the timeline for each lead in the funnel and continuously working the funnel to refine process and stay connected with clients and future clients.
Managing prospects and clients needs a system. There are many customer relationship management tools out there on the market to do this. Before jumping in to any of them, you must have a clear understanding of the sales funnel - where prospects come from, how they become clients and what the client lifecycle looks like.
First into the funnel is the lead. Where do they come from?
...referrals
...online advertising
....word of mouth
...print ads
...walk by
...trade shows, events
....associations, memberships
Knowing where leads come from can help the business understand what type marketing works best for the business-model or at least eliminate time and money wasters.
Next, understanding in which part of the funnel the prospect is located. There are usually three phases or parts:
1. Leads that need to be worked. Not quite yet prospects, contact and follow up will determine if the lead turns into a prospect.
2. Prospects that need to be qualified. After understanding the lead has potential future purchase interest, the lead becomes a prospect. The work here is to determine how much time investment is required to close the sale. Get the prospect to yes or no before moving them out of the prospect segment.
3. Customers. Prospects who have made the decision to purchase are now customers/clients. Determine how to maintain follow up with customers so that they can provide leads and referrals, or continued purchase.
The keys to operating a successful funnel are to keep it full, and keep filling it from all sources, tracking and measuring the timeline for each lead in the funnel and continuously working the funnel to refine process and stay connected with clients and future clients.
