How to manage your sales funnel with 5 foolproof tips
Want to optimize your sales funnel results? See some useful tips
The sales funnel is at the heart of everything we do in sales. Your salespeople are looking at your funnels daily, because it’s your north.
The sales funnel is a visual representation of all the opportunities opened by your team. The results of all the lead generation, calls, emails, meetings and everything else involved in a sale come together to create the sales funnel.
Mastering managing a sales funnel is one of the most effective ways to increase revenue as it helps you find and improve your areas of weakness.
But why are your sales funnel metrics important? What can salespeople and managers improve with good sales funnel management?
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- #1. know the numbers
- #two. Run regular sales funnel evaluations
- #3. Focus on small improvements at each step of the funnel
- #4. Keep funnel steps clean
- #5. Create a sales funnel management manual
- Are you ready to start testing?
#1. know the numbers
The sales funnel is about understanding the numbers and components of the funnel. If sales managers know their metrics, they are able to better forecast and create the revenue forecast.
Here’s what you should know:
- New leads are created per month per seller.
- The conversion rate leads to opportunities.
- The conversion rate of opportunities into closed deals.
- Average of the size of each deal closed.
- Average sales cycle duration.
- Classification of each sale.
- The total number of open opportunities.
The more accurate the data, the better. Getting better data will require your sales team to be putting quality information into CRM.
Obviously, sales managers need to make the quality of CRM data a priority so the numbers tell the truth.
When data is solid, past trends will help predict future results.
Are you on top of your sales funnel numbers?
#two. Run regular sales funnel evaluations
In revenue forecasting, we are constantly seeing that the best way to speed up the sales funnel is by increasing the number of qualified open opportunities.
This is due to the fact that the lead generation system, once well defined, can be scaled quite easily.
While increasing the win rate requires focusing on a variety of interrelated factors and activities that can be more difficult to systematize.
Each sales manager holds regular forecast meetings. Unfortunately, like most things in sales, forecast meetings focus only on opportunities that might be closed the following week.
While meetings can be helpful, funnel comments are beneficial. Sales funnel assessments focus on opportunities that are at the top and in the middle of the funnel.
Here are some advantages of comments in the sales funnel:
- Sales teams can assess the quality of opportunities recently added to the funnel.
- Sales managers can have a greater influence on the result, because they are the most recent opportunities.
- Sales representatives and managers have a more comprehensive view of the entire sales funnel.
#3. Focus on small improvements at each step of the funnel
As you may have heard, sales is a numbers game and teams that use a good revenue forecasting system have high volumes of leads to tap.
This often causes reps to focus more on quality opportunities and leave others to work on later.
Limited focus on quality opportunities can be detrimental to your bottom line. Small step-by-step improvements in the sales funnel can see you achieve promising results.
#4. Keep funnel steps clean
If sellers increase conversion rates by 10% in 1 step of the funnel, there is already a potential for a 50% increase in the number of new businesses.
Just like a marketing funnel, a sales funnel must be constantly optimized and measured. Use assessments from each step of the sales funnel to eliminate weaker opportunities.
Sellers are inherently optimistic and this can cause you to waste time on top-of-the-funnel opportunities because they really think the opportunities are definitely ready to buy.
The reality is that many opportunities in your sales funnel are outside your attack zone. That’s why you need to clear your sales to funnel monthly to make room for new, high-quality leads.
Having revenue predictability ensures that your sales funnel has a steady stream of leads.
A steady stream of leads allows salespeople to focus on the best qualified opportunities that are in tune with their ideal customer profile and ready to buy.
#5. Create a sales funnel management manual
Create case studies and specific closing opportunities. Create specific activities for each step in the funnel. Sales managers should ask themselves:
- How is our customers’ shopping journey?
- If an opportunity gets stuck in a specific step, what should the seller do? What worked in the past?
- What is the average conversion rate for each step in the funnel?
All sales managers can do a better job of helping their salespeople manage their sales opportunities.
Each member of the sales team plays a crucial role in building a sales funnel, and it is up to the manager to manage the activities that take place within the sales funnel to transform the lead into a customer.
Create a process to operate and manage your sales funnel
Are you ready to start testing?
The greater your control over the sales funnel, the better your results when converting customers.
After all, any and all activities carried out along the sales funnel only serve to increase your company’s new customer conversion rate.
Think that, to improve your results, you have to create an optimized sales funnel ready to deliver results that will help your company to hit sales goals and to predict your results with assertiveness.
If you have more questions on how to get started, you can still download our e-book: The Sales Funnel in Practice and improve your business results with the Sales Funnel.