Strong sales funnel management allows sales managers to dive into more powerful sales analytics, produce more accurate forecasts and provide sales reps with specific coaching points. By studying their sales funnel, managers can pinpoint weaker stages in the sales process, determine where reps are struggling to convert and forecast sales and conversions correctly. Here are some important components of sales funnel management.
- Sales Funnel Conversions
As less qualified prospects drop off from one stage to the next, the conversion rates of the sales funnel should reflect this drop-off, with a smooth gradient between sales funel stages. A key aspect of sales funnel management is honing in on specific stages, especially those with dramatic drop-offs, to coach reps who are losing a lot of their opportunities at that specific stage. The historical conversion rates of the sales funnel can also be extremely useful in forecasting future opportunities.
- Time spent in each stage
This metric, when used in sales funnel management, helps managers forecast future opportunities more accurately. If deals that end up being closed/won usually spend 7 days in the trial stage, an opportunity that has been in that phase for three times as long is not going to close successfully, regardless of how optimistic the sales rep working on it may be.
- The shape of the funnel
The shape of the sales funnel is indicative of how functional and accurate the sales funnel is. Part of sales funnel management involves ensuring that your sales funnel always maintains the same shape – widest at the top and narrowest at the bottom, with distinct drop-offs through meaningful conversion points at each stage. There should be a smooth gradient all the way down between stages – a funnel that has dramatic indents or sharp drops suggests to a manager that the funnel possibly features the wrong number and types of stages.
InsightSquared is the sales reporting and analyzing software you need for the most effective sales funnel management. A leaky sales funnel with unfulfilled leads at each stage can result in a great deal of opportunities lost, so make sure that doesn’t happen with InsightSquared.
InsightSquared is a fantastic sales management tool. We now have the visual reports of our sales and marketing in just a few seconds and we could never get these from our CRM in the past.[/note]
- Steven Carter, SVP of Operations, Visible Measures