Is There A Leak In Your Sales Funnel?

 
Team ThunderAct

The sales funnel determines the journey that a potential customer goes through until a purchase. It is a series of steps that would lead to a sale. 

 

Having an effective sales funnel offers a lot of benefits. It can improve the user experience. At the same time, it can help increase the overall revenue performance of the company.

 

Spotting Leaks


If the company spends money on marketing to attract new leads but ends up with only a few clients going through the sales pipeline every month, then you may have leaks.

 

A sales funnel with a leak is bad news. It means your clientele is stagnant. In worse situations, the pool of customers can even shrink. 

 

The best way to figure out whether you have a successful strategy or not is to gather data. Figure out what opportunities you have won and lost in every channel and stage. 

 

If you are using customer data management software to track your leads and clients, then you already have access to certain reports. Review these and find out areas where you are encountering a roadblock.

 

Focus on the following metrics:

 

  • The volume of the sales funnel – Find out how many visitors enter the sales funnel. How many of them make it through every stage? Measure traffic to get an idea of the effectiveness of sales and marketing efforts at the initial stage. Then, check the return traffic or the number of people returning after their first visit for further research. Calculate the number of marketing and sales qualified leads generated. You should also measure sales opportunities. Lastly, find out how many closed-won deals there are at the end of the sales funnel.

 

  • Conversion Rates – After measuring all the important figures and traffic, you should monitor the funnel stage conversion rate. How many visitors turn into leads? How many of the sales opportunities turn into actual sales? You should also evaluate the overall conversion rate. How many potential customers entered the sales funnel and turned into paying clients?
  • Return on Investment (ROI) – Another important metric is the value of your sales and marketing efforts. Find out how effective a sales funnel is by the ROI. For a precise measurement, break down the sales funnel into segments. 

 

  • Duration – Lastly, you should calculate how long it takes to complete the whole sales process. Track the duration of each stage. In doing so, you get to see which stages are effective and have shorter durations. You also determine the stages with longer durations that may prevent prospects from moving to the next stage.

 

Spotting the weak spot of your sales funnel is crucial, but knowing how to fix it is even more important. Having the right customer data analytics tool like ThunderAct can help you gather the right data to determine if your sales funnel has leaks.

Did you like the article? Help us spread it πŸš€

Our other top stories:

Stay up-to-date

don’t miss any of our top articles