Imagine that you have to make a journey from point A to point B. You know your destination, but the road in this journey will be full of obstacles and uncertainty. You have a general feeling of where you need to go, but how can you get there safely and as quickly as possible?
A map would help! And not just any map, but one that highlights all the potential pitfalls along the way so you can plan for them and get over them to your destination. This interactive map gives you recommended routes to do and avoid. Think how strong this map can be in your uncertain journey.
This is the kind of power that a sales funnel report gives to a sales manager.
Knowing how to get in and out of your sales funnel – all the nuances that provide an opportunity from the start of the funnel to the end, through the payment journey to money – is a game changer. First, sales managers need to know How analyze their sales funnel conversions so they can chart this map for the future.
Here is our step-by-step guide:
1) A journey of a thousand miles begins with one step
Take advantage of all the opportunities you had in the sales pipeline at the beginning of this reporting period – the month or the quarter or even the week. Then chart the evolution of each opportunity from the first stage of the sales funnel to the next, and further until it loses or becomes a won business.
Of course, this will usually require complex export and analysis in Excel. For sales managers who don’t have the time – or with Excel batteries for power users – to do this, they can save a lot of stress with sales analysis and reporting software. Once you have outlined these opportunities, you will have a sales funnel report that looks like this:
2) Immerse yourself in conversion rates from one stage to another
This report shows how many opportunities move from one stage to another, highlighting where your travels will be smooth and where they might be a little uneven. Knowing where the wooden bridge is precariously in your journey will help you take better precautions to cross this in the future.
In this case, it is clear that the rickety bridge is located at Stage 3 – Technical Fit. Seventy percent of the opportunities that begin this journey progress to Stage 2 (Current Solution), but only a small number of 45% of the these Advanced opportunities reach the next stage. Those who cross this point can move more or less smoothly to the finish line.
What does that tell a sales manager? That its sales representatives need help to transfer these opportunities safely on the technical bridge or in the testing process. The manager can then focus his sales coaching efforts there to ensure that future opportunities do not fall through the cracks.
Learn more about measuring conversion rates »
3) Turn this information into actionable plans
Data for the sake of data is useless. A map will only help you if you use the information it provides to actively plan a safer and more efficient trip. For this purpose, knowing where the rickets bridge is means nothing, unless a sales manager offers the representation function and the pickets to get the opportunity safely.
In this scenario, Technical Fit means that representatives take advantage of opportunities through a process, getting them on board, familiarizing them with the features and solving problems that may arise. If so many opportunities are eliminated and they lose interest here, that’s what tells the sales manager one of two things:
- Representatives are not able to make this an easy on-board process. I can’t solve problems when technical problems arise. This leads to loss of contact patience and the decision that your product is not worth bothering.
- Once the contact starts in the process and starts playing in your product, they don’t see the value. This means that your representatives are not doing a good enough job of extracting certain pain points, and then mapping the product solutions for those pains.
Fortunately, both are fixable issues. With more training in pain extraction at the beginning of the process and more training in the technical aspects of the product, your sales representatives will soon see their conversion rates increase. It seems that the rickety bridge can be repaired and crossed safely in the end!
4) Not all trips are the same
The sales funnel conversion analysis can go even deeper. A good way to analyze your sales funnel reports is to compare a salesperson’s sales funnel to the rest of the team:
In this case, it is clear that Josh is well below average in several key stages. Where Josh seems to be struggling the most is in Stage 2 – The present solution. Clearly, Josh needs to improve his demo skills to better convince a potential to take the next step with him. This is the only area where Josh needs more sales coaching help and certainly more than his teammates. Having this type of knowledge will lead you to be a more efficient and effective sales coach.
Knowing the places where previous trips crashed can also help your representatives improve future trips, making them safer, more efficient and more enjoyable for all the trips and guides involved. Improve your sales funnel conversion analysis and you’ll soon have a roadmap, with all the obstacles clearly laid out in front of you, so you can easily conquer them.
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