Any business that has an online presence knows how important a sales funnel is to its unhindered operation and continued survival. A sales funnel is what helps businesses convert their website visitors into paying users. The sales funnel is thus defined as the process that helps sales teams turn cold prospective buyers into hot leads.
How to create a sales funnel for a B2B company? : Video Script
Hey, This is Kapil Khangaonkar.Welcome to Sales Street, a series of new insightful videos on sales, lead, gen, and marketing.
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Let's look at the normal funnel flow. First, let's assume that your funnel is first a demo, then there is a trial set up, then there is a proposal given, then there is negotiation happening and then there are three end stages, which are either one loss or long term. If this is your funnel and you know the ratios, like let's say, for example, your demo to closure is a demo to trial to closure.
Let's say ten is to five is to two. If that is your conversion rate that you know, then you can of course basically go and reverse calculate if you want to achieve X number of closures in a given amount of time, how many trials you need for that, and how many demos do you need to meet those trials. So that's basically a model of reverse funneling which is used to set up targets.
So now typically in a scenario, what happens is the CEO comes up with a number and says that here next year your target is going to be 1 million and a VP of sales typically has to go and live with that. He has typically given let's say five people team and he said, okay, now your target is increased in the same team, you have to now achieve 1 million instead of actually going back. Very disappointed. What you can do in such a scenario is mistake the last twelve months’ numbers, and figure out what is your normal funnel flow from, let's say deal from to trial to demo to trial to closure. Figure out what that number was, do a reverse calculation, and figure out achieving the 1 million target what kind of a team you need and what is the budget for that. And go back with an argument saying, okay, if you want me to achieve 1 million, this is the team size that I need and that X number of team members I need, and why is my budget if that's okay, this target makes sense. If it does not make sense, let's talk about it.
So, reverse bundling is actually extremely crucial in resource planning. It's extremely crucial in setting up the right expectations with the management and is also extremely useful in terms of actually successfully achieving your targets. So that is why it's the most important tool in the arsenal of every GP of things.