What makes a healthy sales funnel?
To appreciate what makes a sales funnel healthy, it’s important to first fully understand the role of one.
The sales funnel is a marketing model that illustrates the different stages of the sales process. It allows you to focus your marketing and sales process to chase prospects effectively, turning quality leads into customers that convert.
The sales funnel provides both a visual and measurable guide for businesses to track their sales process, allowing for year-on-year analysis. It’s important to differentiate this from the sales pipeline. These terms are sometimes used interchangeably; however, they do have different purposes. Whilst metrics can also be attributed to the sales pipeline, the sales funnel has been specifically designed to do this
The visual design of the funnel lends itself to data analysis. The wide top of the funnel represents the number of leads coming in, and as this tightens into the next stage of the funnel, so do the valuable prospects. Targeting and refining as the funnel gets smaller enables a more focused approach, ultimately producing more sales. Each level provides the chance to see the attributed numbers, something the pipeline doesn’t offer.
A healthy sales funnel is a strategy that is returning both forecast and desired outcomes. An unhealthy sales funnel, on the other hand, may be causing great damage to your sales process without you realizing it.