You’ve probably heard of the sales funnel before, but I’m going to show how to use it. The sales funnel is a great way to organize the process of getting new clients. Every business is in the business of selling so you’re better off getting used to it. You may not be comfortable with selling, but this process with take some of the fear and the unknown out of selling.
Here is the sales funnel:
Generate Traffic: You should be generating traffic already through content creations, Search Engine Optimization, Pay Per Click Advertising, Social Media. Whiteboards, eBooks, etc…
Generate Leads: You will most likely be generating leads through your website or in-person from referrals and traditional advertising methods.
Qualify Leads: You want the right people to work with. “Everyone” is not a target market. By now, you should know who your ideal customers are and you should be targeting them.
Convert Leads Into Clients: This is the part that may require some selling. But, keep in mind, that if they made it this far, they probably want what you’re offering.
Reverse The Funnel and track EVERYTHING
The key to understanding the sales funnel is to measure and track everything. In CrossFit we track our WOD times, lift totals, etc and here we must do the same.
Let’s say you generate 1000 visitors.
100 of those visitors sign-up on your website and become leads (10% become leads).
You qualify those leads and 10 become interested in your service. (10% qualification).
You close 1 client out of the 10 (10% close rate).
Now you know that you need to generate 1000 visitors to get one client. You can then figure out area where you’re losing clients such as the closing process or maybe your landing page isn’t generating enough leads. Do you just need to get more traffic, perhaps? A goal could be to convert 5 visitors of every 1000 to become a paying client.
By reversing the sales funnel, you can determine what you need to do to get more paying clients. Are you losing a lot of people between signup-up and qualifying (the free trial?) Is one coach a much better closer than the other? Are you not getting enough visitors?