Sales Funnel Chart
A Sales Funnel Chart is an inverted pyramid chart used to illustrate the steps in a sales process, from lead generation to completed sales. A business is bound to lose some number of potential customers at each step in the sales process and this is represented by the narrowing sections as you move from the top section (the widest) to the bottom section (the narrowest.)
A sales funnel chart is typically used to outline the steps in a sales process; it shows how a customer makes it through the various actions that ultimately lead to a final sale. If the chart is also combined with research data, meaning quantified measurements of just how many leads are lost at each step of the sales process, then a sales funnel can be used to illustrate where the biggest bottleneck is in the sales process.
A sales funnel chart can also be used to quickly communicate your business's sales process to new members of your sales team or other interested parties.
- Describe your "lead generation" method. How do you generate your first leads? When you're trying to sell your product, what's the first thing you do in order to reach customers? Do you email them? Call them? Put up a billboard and wait for them to call you? Write down your lead generation method as the starting point for your sales process.
- Walk through the steps a customer takes through your sales process. Starting with your lead generation method, begin walking through the steps that a customer takes in your sales process—outline them in sequential order, all the way from lead generation to closing the sale.
- Review the steps in your sales process. Once you've outlined the steps in your sales process, review it and make sure that they are in the correct order.
- Build the Sales Funnel. Once you're sure of the order of the steps in your sales process, put them onto the sales funnel, beginning with lead generation and ending with closing the sale.
- Establish measurable metrics for each section of the funnel. Once you've established your sales funnel, you can begin identifying metrics to measure just how many potential sales are lost at each section of the funnel. These metrics will help you identify which parts of the sales process need the most improvement in order to improve your lead conversion rate.
- Analyze the metrics. Once you begin capturing sales process data, you can begin performing analysis on which stages of the sales funnel need to be improved.
- Refine your sales process. Based on your analysis, determine which sections of your sales process need the most improvement, determine methods of improving those sections, and then implement those improvements.