Last week we took our first look at your sales funnel. Here are the different levels we used, from top down:
- Unqualified Prospects
Your company or industry might use variations on those terms, but for the most part the meanings and buckets will be the same.
So once you have a clear picture of your funnel, the next thing you need to do is begin to analyze it. How do you do that?
You start by assigning numbers to each level. How many people are in the pool of unqualified prospects? How many are in the awareness stage? And so on.
It might be difficult to get to exact numbers for each one, but you should have a sense, based on your own internal metrics and tracking.
You should know how big your target market is. If you got every single person in the market to purchase from you, how many people would that be?
You should know how many people came to your website, filled out your forms, became a sales lead, and purchased. And you should also know how many customers came back and made a repeat purchase. Adding a little bit of art to this science, you will end up with good estimates for each level on the funnel.
When you write those numbers down, you can do some quick math to see what percentage of people from each level make it down to the next level. This is your conversion rate at each stage.
For example, let’s say you have a total market size of 1000 people. That’s what you write down next to Unqualified Prospects. And you’ve judged 500 people to be in the awareness stage or beyond, meaning they have had some exposure to your brand. So you have an awareness rate of 50%.
Calculate that percentage throughout the funnel and you will have a complete look at the effectiveness of each stage of the sales process.
Tomorrow, we’ll take that analysis one step further and talk about how to use those numbers to improve your sales funnel.