Prospective customers who do not yet know your brand require a completely different approach than people who have been thinking about using your goods or services for a long time. These requirements must be considered precisely – especially in the online sector. But how? The Sales Funnel tends to offer a particularly efficient solution/answer. This is an instrument for presenting and optimising the various phases of a typical sales process on the part of the company. But what exactly is the Sales Funnel and Sales Funnel Management and how can a contact management system help you with this? We will answer exactly these questions in the following.
What is Sales Funnel Management and the Sales Funnel itself?
The Sales Funnel is a methodical approach to qualitatively and quantitatively map the different levels of sales processes. Thus, the Sales Funnel offers the possibility to follow the complete path from primary customer contact to successful completion. The intention is to optimize marketing and sales processes. Ultimately, the funnel is intended to help make sales generation more efficient and profitable. The term “Sales Funnel Management” in turn describes all related activities, such as the creation of an internal sales funnel as well as its controlling and further development.
A sales funnel is always visualized – as the name easily suggests – in funnel form, with the individual phases within the funnel being represented by specific blocks. All prospective customers for your goods or services enter the funnel at the widest part at the top. This converges further and further towards the bottom, whereby more and more potential customers are sorted out over the phases or the real interested parties are compressed (processed). At the bottom are the paying customers.
The Sales Funnel offers numerous advantages for marketing and sales:
– Clearly comprehensible list: The Sales Funnel provides a clear overview of the individual steps in the sales chain. The touch points (contact points), which are on the way to a successful conclusion, are clearly shown in it.
– Measurability: With the help of the clear list, changes in the individual phases can be precisely measured using key figures. This makes it possible to identify risks and potential during the sales process at an early stage.
– Sales forecasts: The key figures for the Sales Funnel provide the opportunity to make very concrete forecasts for possible sales development. Among other things, this enables you to take countermeasures in good time in the event of negative developments.
Sales Funnel and Customer Journey
The so-called Customer Journey plays an important role in connection with the Sales Funnel. It can also be used to present the contacts between companies and (potential) customers – but not from the company’s perspective, but from the customer’s perspective. This gives you the opportunity to a certain extent to take a closer look at the other side of marketing and sales. In the meantime, it is in fact especially important, especially in online marketing, to act in a way that is maximally target group oriented and to play out appropriate content. Because only through such can today’s web users really be convinced.
The customer-journey model creates a picture of the path that interested parties take until they finally move on to customer status. Similar to the Sales Funnel, the customer journey is usually presented visually as a funnel. The whole thing is supplemented by a kind of base or an inverted funnel, which expands again at the bottom. The Customer Journey also takes into account what happens after the purchase. This hourglass-like construct is also divided into different blocks, which in the direction of the conclusion represent more and more precise needs of the interested parties.
On average, customers have up to seven points of contact with a brand before they actually buy. However, the Customer Journey concept was not only developed to understand these points/phases, but primarily to control them. This is ideally done here in direct comparison with the Sales Funnel.
How does the creation of a sales funnel or the associated sales funnel management work and what advantages does a customer management system provide here?
In order to create a company-specific sales funnel, you first need to know the principle and the most important terms and align your marketing and sales activities accordingly. Contact data and the appropriate way of addressing customers always play an important role, which is where the Contact Manager software comes in. Basically, a sales funnel can be divided into the following three areas, which in turn can have further segments.
Top of Funnel (ToFu)
ToFu forms the top step of the hopper. The first step is to address the largest possible audience of your target group. The aim is to establish initial contact with many (potential) customers.
In this phase, the sale of a product or service is not yet an issue. Direct contact and thus the use of customer management software are also rather rare here. First and foremost it is important to understand the needs of the target group. The focus is not on sales efforts, but on marketing initiatives that increase reach and traffic online.
Middle of the Funnel (MoFu)
MoFu you crystallize out real interested parties more and more. People who are not interested in your services fall out of the sales funnel at this point. The remaining persons are addressed all the more precisely and, at best, are made to submit their contact data via specific lead generation strategies, which are then structured in the contact management system for efficient further processing (for lead nurturing).
Bottom of the Funnel (BoFu)
BoFu you offer your leads exactly what they expect from your brand and more. This way, you can convince your contacts in a particularly efficient way by displaying information that is precisely tailored to their customer-journey phase and by addressing them personally. You will find all the necessary data in your Contact Manager.
If you would like more details about effective sales funnel management, please contact us. You are also welcome to register now for a free trial of the Brolio Contact Manager.