Question for SMB leadership team members: Do you measure your sales funnel on a regular basis, monthly or quarterly? Chances are no more than 6 in 10 will say yes. We also know from experience that less than 25% of leads generated by marketers turn into sales. It sounds unbelievable but it's true.
A healthy distribution channel is a prerequisite for any kind of growth. Without a steady flow of customers, no SME can hope to create a strategic plan for the year. If you are in a monopoly, you can easily sell anything you make. But who can still have this luxury?
One way to increase sales is to increase the number of new customers. On the other hand, the value of orders per customer should increase. In some B2B markets, such as automotive or computer chips, it is difficult to increase the number of customers because the number is limited. Therefore, it is important for most SMBs to try to increase sales by increasing order value over time.
A good sales funnel requires building relationships and with that the ability to sell, expand, or provide more services to existing customers. Some e-commerce sites offer unique special offers once you're ready to make a purchase and enter your payment information. This means you can buy something else for half the price and entice the customer to spend more. Research shows that once someone agrees to buy something, offering something increases the likelihood that they will accept the new offer. Playing with the human mind will be helpful in building a funnel.
Have you drawn your ideal customer persona? This is the next big thing for marketing and sales. You may sell a few customers here and there, but consistent sales efforts won't translate to sales without the right customer motivators. Keep in mind that nearly 75% of leads are lost. Character creation involves naming the client, describing their behavior, character, demographics, desires, psychographics, and more. The more you know about these people, the better your chances of creating a healthy funnel. Without them, your sales efforts will always fail and the battle for growth will continue.
Encourage your reps to keep doing what they've done well in the past. There is no getting away from the usual rigidity of business processes. If the process is not working, analyze the reasons and make changes. Bad funnels happen when the process is inefficient and the salesperson isn't trained to handle objections. Watching the competition and working on your sales pitch is very important and you should continue to grow even if you have long-term contracts with clients. Remember not to copy your competitors; if you do, you don't have a sales strategy. Build your efforts on what has worked and improvise.
Just because your existing customers show interest in your new offer or service doesn't mean they'll immediately buy from you. They take their sweet time. They may have a number of reasons why they are not acting quickly and that is what the sales team needs to address and provide a yes or maybe a sure buy. It's also important to learn how to solicit sales from those who have shown interest. Waiting for it and not delivering always results in your competitor leaving. They may consider a money-back guarantee or offer a pilot program to get customers to agree to purchase a new service.
Today's customers are smarter and more data-driven than some of your sales reps. They have a feature and price comparison chart and always check third-party reviews online. That's why they ask for customer testimonials and referrals. You can overcome this by increasing your experience in an area or building strong relationships. This is an important part of building a sales funnel. There are many ways to achieve this: offering free information to improve your prospects' business processes and results, publications, access to industry-related data, frequent publications and engagements, and of course food and drink or golf items. . In some cultures, like the Arab business community, friendship comes first and yes, they do business after the friendship is established.
If SMEs want to grow, remember to create long-term value by building good distribution channels. Generating leads is important, building relationships and rewarding loyal customers are often higher value activities. With a great sales funnel, your ROI on your sales efforts will be higher, create a better, meaningful experience, and make it easier for you to stay ahead of the competition.