How To Build An Effective Sales Funnel?
Managerial operations use various terminologies that broadly describe the workflow of multiple functions. In a business, a company has either a product or service to sell that will solve the problem area of the end-user who is the consumer. The payment in exchange for the wares includes the cost of the goods or services, taxes, charges, and margins. However, there is one important component of the expenses which is traditionally termed sales and distribution cost. Current day wording underwent some changes and this can be called the customer acquisition cost. Some words are used interchangeably but may mean more; for instance, the landing price is not just the selling price. It includes the freight, packaging, and handling charges.
A sales funnel is also an old wine in a new bottle. It was traditionally represented as the AIDA model or the decision response marketing approach. Few management experts disagree that all the terms are the same but agree that all of them share similarities. While AIDA deals with the behavioral stages of a consumer, DRM stresses quick response solutions. A sales funnel is an extension of lead generation, sales prospecting, and conversion strategies.
If you recall a visit to the farmer’s market on Sunday, you might remember that many stalls sell similar items. There is always one stall that sells something unique or distinctive that attracts the attention of most visitors. All the visitors will form the base of the sales funnel and are passing through the awareness stage. The seller will pitch about the product and the enthusiasm of fellow buyers will pique the interest, and you will decide to buy and try to negotiate the price. After some cajoling, you will pay for the stuff and this stage is known as action is a sales funnel where the deal is closed. Here are some steps to build an effective sales funnel:
Quality Prospects
A wider base will not generate more leads. It will seem counterintuitive as the human mind calculates this part as more the merrier. However in reality a funnel is a filter. If the prospects don’t fit the profile of the target audience, then getting them to the next stages and conversion will be a futile struggle. When your visibility is extendable to the required parameters of the demographics suitable for your product, then the quality and targeted audience range expand.
Remove Obstacles
If the sales process has pain or friction points, a prospect is less likely to convert. When the purchasing experience is seamless, customers are more likely to return and bring their friends and family with them. Trusted brands are built over time by focusing on small things that make a big difference.
Assertion Over Aggression
Every salesman has targets and milestones to achieve before their performance appraisal. Meeting monthly and quarterly sales targets as individuals and teams should be an assertive approach that uses a soft and polite tone. The consumer can be nudged but not be pushed to buy a product or service.
Conclusion:
A good salesman possesses managerial skills with the finesse of an artist, acting as a mind masseur to guide prospects toward making the right decision quickly.