Your sales funnel is set up. You know the metrics at each stage. How many leads go in the top, and how many fall out at each stage and why. You have all of this information – now the big question:
How do you improve your conversion rate at each stage in the Sales Funnel?
First of all – look at the reasons why the conversion rate at each stage in the Sales Funnel is what it is.
This will require you to do some very simple Loss Lead Analysis. Before we look at the specific of this let me wave a huge Red Flag at you….
If your conversion rate from one stage of the sales pipeline to the next is almost 100 percent throughout your sales funnel, and you see largest fall in the conversion rate at the final stage – then your lead qualification process is flawed. Highly flawed.
Ideally you want either a steady state drop off in leads throughout the sales funnel, ideally with a higher drop out during the early stages of the interaction with the prospect.
On the understanding that you see a fairly steady conversion rate through all stages and you see an 80% plus conversion rate from lead to order during the final stage of the sales funnel then the following is an appropriate set of actions for you to under take.
Lost Lead Analysis
- List all the reasons why leads are failing to progress to the next stage in the sales funnel
- Against all of the reasons list the causes – invariably these will be due to poor qualification in the earlier stages of the sales process
- Look at the reasons and formulate a set of questions you should be asked further up the sales funnel to ensure poor quality leads don’t progress – it wastes time and money
Obviously the more specific you can be about the reason for the lead not converting, then the more specific you can be about the questions to introduce.
This requires that the sales person drills down to find the real reason for the sales lead not progressing, and that means not simply taking the first line – i.e. the board won’t approve the budget, the team don’t think it will fit the incumbent systems….
To do this is a big learning curve for the organisation, but also a huge learning curve for the sales individual. Working the numbers in the sales funnel is one thing, learning how to make those numbers better is another.
If you are looking for help/assistance in filling your sales funnel with highly qualified, profitable sales leads that convert, using robust sales qualification methods and techniques that will build a solid sales pipeline, then please feel free to contact us for a confidential chat.
Carol Griffiths – Lead Consultant and Director
Morton Kyle Limited
0779 002 1885