Sales funnel: the essence, significance and a simple example of constructing

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2020-06-11 23:00:08

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At the present time to produce a quality product or to buy it at the wholesale warehouse the price does not present special difficulties. The greatest difficulties usually arise with its advertising and sale. In order to monitor, analyze and forecast sales, there are many methods and tools. One of the most popular of these is the so-called sales funnel. Excel, 1C and other such programs allow not only easy to build for a particular company, but to get from this practical use in the business.sales funnel excel

Concept

In fact, any sales of products tied to transfer a potential buyer into a real consumer, ready to exchange their money for the benefits of the product. A sales funnel is the embodiment of the idea that this process can be divided into several separate stages, each of which requires its own approach, skills and working methods. All this makes it possible not only to analyze and plan for the end result, but also to consider many other factors. In General, sales funnel – is the ratio of the number of successful transactions the number of contacts with potential buyers. On the upper level usually displays the number of initial communication with prospective customers, and the bottom – the number of completed sales.

Importance

Sales Funnel has great practical value. In addition, it gives a visual representation of the implementation of the product, it can help to make the transition from passive sales to active, building on its basis a schematic motivation of managers, which directly and doing it. A sales funnel allows you to identify and eliminate the weak phases of the sales from the entire Department, but also each seller. And this, in turn, allows to concentrate on their elimination and, ultimately, to improve the performance of their work.funnel questions in sales

Example building

Suppose that we have a firm that is engaged in the retail sale of toys. Then for the sales Department, you can simulate the following sales funnel:

  1. Identifying potential buyers in a specifically specified area. Let's say the number is 1000.
  2. First contact with prospective clients. Because not all will be able to contact during the reporting period (business trip, illness, etc.), this number will be less. For example, I was able to call 900 people.
  3. The Definition of interested buyers. It would be naive to assume that everyone who hears talk of tempting offers, immediately will rush to shop. Some people will miss the information received by ear, and others will be interested and wish to obtain additional information. Suppose that we have turned out 300 people.
  4. Discuss the price. In this important and challenging for many sellers stage will have to dissipate all doubts on future purchases. Developed even funnel issues in sales, which recommends to build dialogue in sequence. At this stage, will be eliminated some potential buyers, say, 100 people. In the end we are left with 200 potential customers.
  5. Signing of the contract. If the client believes that the price is acceptable, it does not mean that he is ready to make a purchase. Perhaps, at this moment this products are not needed or are not satisfied with some of the nuances in the contract. After this step, from the initial thousands to sign documents to agree, maybe only 150 people.
  6. The First shipment. It so happens that the buyer for whatever reason is stalling. Nothing can be done – we still have to make efforts so that the buyer has agreed to pick up your order. There will be even fewer – 130.
  7. Payment. The quality of the goods may not like, and they can return. Also do not forget about the probability of occurrence of receivables. Anyway, pay on time will be even less. Let the number is 100 people.sales funnel

As we see our sales funnel allows you to identify that at the stage the interest we have the greatest problems, and so it was here in the first place to introduce new methods and practices.


Article in other languages:

AR: https://tostpost.com/ar/business/22796-sales-funnel-the-essence-significance-and-a-simple-example-of-construc.html

HI: https://tostpost.com/hi/business/24301-sales-funnel-the-essence-significance-and-a-simple-example-of-construc.html

PL: https://tostpost.com/pl/biznes/42363-lejek-sprzeda-y-istota-znaczenie-i-prosty-przyk-ad-budowy.html

PT: https://tostpost.com/pt/neg-cios/41983-funil-de-vendas-a-ess-ncia-o-significado-e-um-exemplo-simples-de-const.html

UK: https://tostpost.com/uk/b-znes/40996-voronka-prodazh-v-sut-znachim-st-prostiy-priklad-pobudovi.html

ZH: https://tostpost.com/zh/business/47846-sales-funnel-the-essence-significance-and-a-simple-example-of-construc.html






Alin Trodden - author of the article, editor
"Hi, I'm Alin Trodden. I write texts, read books, and look for impressions. And I'm not bad at telling you about it. I am always happy to participate in interesting projects."

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