How to Find and Fix the Hole In Your Sales Funnel
If you're having trouble getting your business off the ground, or it seems like you're just not getting enough conversions, chances are there's a hole in your sales funnel.
And figuring out where that hole is -- and how to fix it -- is no walk in the park. It usually requires a lot of in-depth analysis, some trial and error, and a good deal of patience. You may be spending an arm and a leg on various marketing solutions and following up with all of your leads, but if those leads aren't converting into sales, something's clearly go to be patched up.
A sales funnel is made up of three essential components:
- A source of traffic. This might include classified ads, social media sites, search engines, etc.
- A means of collecting leads from that traffic. Leads are created when people express interest in your services and give you their information, whether by filling out a contact form, opting in for email updates, otherwise.
- A sale -- that is, the conversion of leads into paying clients.
While there's no way to have a completely effective sales funnel, it's fairly obvious when one or more of these pieces isn't doing its job. Many people, when they find they're not making as much money as they'd like, react by spending more money on marketing. They think they're simply not doing enough. But if you haven't identified where the gap is, you'll likely be throwing money down the drain.
So, where do you look first? How do you successfully diagnose the problem?
Start with tracking your marketing efforts.
You want to know what's working and what isn't, and unless you start paying attention to who's clicking on what, you'll be taking a shot in the dark. Automate reports on everything you use to market your business, including ads, email campaigns, and social media posts.
In analyzing these reports, you can see where people are entering your site and how long they're staying there. Maybe you get a lot of website traffic from your newsletters, but your Facebook posts don't seem to be as enticing to readers. Maybe your bounce rate -- the number of visitors who leave your site without clicking on anything -- is inordinately high.
This data tells you a lot about how you can revamp your sales funnel. If your newsletter is successful in attracting web traffic, there's probably a good reason. Take a look at the content you're sending out -- Does it have a catchy title? Is the information especially relevant to your targeted audience? Does this medium simply work better for your business? If you know of something that you're doing right, it's not a bad idea to make it a model for other marketing efforts. Similarly, if something is clearly wrong -- if people aren't spending enough time on your site, for example -- think about why that may be. Maybe your website doesn't include a lot of calls to action, or your on-site links aren't catching the attention of your visitors.
Whether the issue is in your marketing or your website design, the key is to have a hook -- something to keep your potential customers interested. And part of discovering that hook is knowing about your clients' values and interests.
There's a chance, however, that this isn't where the problem is. Although a break in the sales funnel is frequently found somewhere between gaining traffic and creating leads, you've also got to rule out another possibility: that a large number of your leads aren't being converted into clients. If you're receiving a lot of contact information but you're still not making the sales, the problem might be in your sales process.
The solution?
Changing your value proposition.
This means restructuring your sales pitch to increase the perceived uniqueness, usability, or relevance of your product. What makes your company stand out among the competition? Why is what you're selling the best option for the consumer?
For painters, attractive value propositions are often centered on cost efficiency and customer service. Although the initial information that your clients receives -- via your website, online reviews, or otherwise -- might spark their interest, it's not usually enough to make them hire you for the job. An ad in the phonebook will tell them what services you offer, but you have to tell them why it is that you're worth every penny you charge, and why you're a better choice than your competitors.
This is another good reason to present proposals on the spot. In doing so, you can add value to your work by going into the details of the project. For example, rather than simply stating that you're going to prime bare wood, explain to the customer that you're going to prime all of the bare wood and wood knots with a special, oil-based primer, ensuring the best coverage adhesion for the paint. Show them that you're committed to quality and that you won't cut corners.
Conversion is also more likely if the client feels that you'll provide superior customer service. They want to be sure that their concerns will be heard and taken into account, and that their satisfaction is your number-one priority. You can demonstrate this by communicating often with your customers, proving that you're dedicated to keeping them "in the loop" and involved in all decisions. It's also essential that you and your team come off as friendly and accommodating, no matter the circumstances. For more tips, check out our blog on the Top 6 Ways Your Business Can Produce Happier Customers.
As you can see, finding and fixing the hole in your sales funnel is a process -- one that necessitates close examination of your business model and a willingness to test new approaches. Overall, the best way to improve your strategy is to try and see things from the perspective of your desired audience. By putting yourself into the clients' shoes, you'll have a better understanding of where the issue may lie, whether it's in your marketing technique or your perceived value. And once you know where the leak is, you can determine the best method of patching it up.
What's next?
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