How long is the sales pipeline in your business? If you are spending hours putting out proposals and promotional material that aren’t always converting to sales and income, you could benefit from using a sales funnel, and managing your pipeline more efficiently.
A Marketing and Sales Funnel (MSF) is a visual representation of the steps required to sell products and/or services. This tool will outline in more detail the concept of a sales funnel, as well as help you to create one for your own business.
When developing your sales funnel you will need to divide your sales pipeline into sections, and calculate four key metrics for each:
- The number of opportunities
- Total possible dollar value for every deal in the funnel
- Average time to process lead
- Average percentage of sales conversions
While many people will try to increase actual purchases by simply increasing the number of people your product/message goes out to, a sales funnel can help you find more effective ways to increase sales.