Before you start building your sales funnel, it is essential to have a clear business vision, develop a marketing strategy and then define your target audience to work towards your business growth. If, for example, you are looking on how to create an online clothing store, you need to follow specific steps to develop your business and stay successful.
You can configure the lead scoring rules to match your ideal buyer persona by simply adding or subtracting points for the lead property. For example, if your business is purely local, then for a lead to become your customer the minimum criteria is to be within your service area. Add 20 points. If the lead doesn’t belong to an industry you serve, subtract 10 points. In addition to that, you can also customize scores for email, application and web activity. Bring everything together, and you have a list of hot, warm and cold leads in the sales funnel for your sales reps to focus and close more deals faster.
In this final stage, the prospects finally choose to buy from you and is now a paying customer. This is traditionally the last stage of the funnel since the customer has converted. But, a smart business knows that they have to keep ensuring the customer is happy and provide constant support to ensure that they remain loyal. And, if they manage to delight the customer with the service they provide, then the customer might turn advocate for the business and in turn, bring in more customers himself.
For a business to run successfully, you need to have customers who are willing to pay for your product or service. But, how do you go about finding these customers? You need to have leads who will then turn into prospects, who you can finally convert into customers. Most companies spend a lot of time perfecting their lead generation strategies so that they the leads keep coming in. But, more importantly, you need to perfect the lead funnel.
Depending on your business and industry, you could have 1,000 prospects at the top of your funnel. However, towards the end of your funnel, you may have 25 qualified leads. While these 25 prospects are more likely to convert than the ones at the top of the sales funnel, at the very end, there may only be five customers who make a purchase and only two that go on to become repeat customers.
Now sales start its own screening process where they start calling up the lead and asking them for requirements. The pre-sales team starts analyzing their actual requirement and how good of a fit they are for the business. The best way to do this is to have a lead scoring tool, which will let you assign scores based on lead activities. Once pre-sales deems them as good leads, they now get passed on to the sales team
In 1898, E. St. Elmo Lewis developed a model that mapped a theoretical customer journey from the moment a brand or product attracted consumer attention to the point of action or purchase. St. Elmo Lewis’ idea is often referred to as the AIDA-model, an acronym that stands for Awareness, Interest, Desire, and Action. This staged process is summarized below:
Let’s say, for example, that you’re trying to sell someone a coaching program that costs $1000. A lead comes to your blog, likes a post, and signs up for your mailing list. If your first email is a sales pitch for your coaching program, how many people will buy it? A small percentage, to be sure, especially if your blog posts are directly related to coaching program. However, by adding a few more steps, you can more easily encourage a sale. Your sales funnel might instead look like this:
Hello Mark, I absolutely loved this article. It’s very thorough. I wanted to ask in Step 3 that is “Defining the Criteria for Each Stage” in each sub-step if the customer is not responding to sales call we are sending them back to the previous sub-step. In between each sub-step, can we put one more stage where we are approaching the customer one more time through Email or SMS where in we give them a last chance to move forward and if they don’t reply to it, then we put them back in the previous sub-step?
Imagine this situation: you go into a shoe store and look at a pair of shoes that caught your eye. Immediately after you enter the store, a salesperson asks you if you’ll pay with cash or credit card. You haven’t tried the shoes on, you haven’t looked at the color options, you haven’t seen other shoes in the store, but this salesperson just keeps asking you for your payment information. Of course, you’ll end up leaving the store without purchasing anything.
Sales lead: If the lead is truly qualified and he has had a good conversation with the inside sales team, he is passed on to an Account Executive (AE). The AE also speaks directly with the lead and has seven days to either turn the lead into a true sales lead, or send him back to marketing for lead nurturing, where marketing adds that lead into a campaign to re-engage him over time.