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7 Reasons Why a Sales Funnel is Indispensable for Acquisition
Sales, selling, or acquisition – in the end, it's all about winning new projects. But how can this be done most efficiently?
Cold calling in the open field (e.g., trade fairs and networking events) is not everyone's cup of tea. Uncertainty, disorientation, and the pressure to address the right people correctly and then to say the right thing - almost everyone knows this uncomfortable feeling. Overcoming it seems to be the key.
There seem to be natural talents who have the finesse to be in the right place at the right time, to know the right people - and then to stay on it until the contract is signed. And that's exactly where we come to the most important point: Staying on it!
With some discipline and hard work, anyone can achieve above-average results.
A so-called Sales Funnel is an indispensable support in this process.
What is a Sales Funnel?
A Sales Funnel (the standard English term for "Verkaufstrichter") is basically nothing more than a list with potential new business. In technical jargon, these potential projects or customers are referred to as leads.
Characteristic for every lead are the following features:
Characteristic for every lead are the following features:
- It is assigned to a stage: The stages describe the path from the first contact to the conclusion. Typically, these are "Initial contact, Introduction, Proposal, Verbal commitment"
- There is a history: Here, all information or notes are stored in chronological order
The translation "sales funnel" describes the ideal image of a well-managed Sales Funnel. Ideally, the symbolic funnel shape emerges: many leads at the initial stage with a low probability at the top, and fewer leads with a high probability towards the bottom (see illustration).
English image not yet available...Sales Funnel – indispensable for acquisition:
1. It creates confident visibility.
Your own acquisition activities are structured by a Sales Funnel and are quickly accessible. The funnel also provides business partners with a quick and clear overview of "what's currently going on". And team members involved in the acquisition can quickly find their bearings.
This way, there is no aimless phone calling or approaching the same leads.
This way, there is no aimless phone calling or approaching the same leads.
2. The stage and probability of leads become tangible.
Each lead is assigned a stage with a probability of closing. The stages can usually be determined when setting up the Sales Funnel. Let's assume one stage is called "Initial contact" and has a 5% probability. Another stage is called "Verbal commitment" and has a 90% probability of closing. Depending on the size of the company, there are 2-5 additional stages in between.
3. Traceability is given.
Notes on the steps a lead goes through are recorded. This way, the entire history of the lead is depicted and accessible. If there are queries from business partners or if another person takes over lead management in the absence of the lead manager, no questions remain unanswered, and the new order can be acquired seamlessly – and ideally won.
4. The need for action is clear.
A Sales Funnel is not a dead list but requires regular maintenance. Therefore, not only is a lead assigned to a stage, but also a date for the next action is set. The next action usually aims at making contact again to advance the acquisition.
In the best case, the system or software reminds you shortly before and on the day of the appointment. Due leads are often visually highlighted. In MOCO, for example, the visible date in the lead list changes from green to orange when the date is exceeded.
After the lead has been contacted, an immediate next appointment is set to keep the lead in the flow
In the best case, the system or software reminds you shortly before and on the day of the appointment. Due leads are often visually highlighted. In MOCO, for example, the visible date in the lead list changes from green to orange when the date is exceeded.
After the lead has been contacted, an immediate next appointment is set to keep the lead in the flow
5. Potential customers can be dealt with at eye level.
Potential customers appreciate reliability. Regular, targeted inquiries at appropriate intervals during the acquisition process create a good atmosphere and can help build a solid foundation of trust.
In practice, this might look like this: If the customer is still comparing other proposals, I'll check back in two weeks. If I send an email, I set the reminder for a week and follow up again. Vague prospects are dated a few months back. This way, you don't risk missing important decision points of the customer. Regular contact usually also accelerates the customer's decision-making process. However, too frequent contact can deter. The sense for the right intervals develops over time.
In practice, this might look like this: If the customer is still comparing other proposals, I'll check back in two weeks. If I send an email, I set the reminder for a week and follow up again. Vague prospects are dated a few months back. This way, you don't risk missing important decision points of the customer. Regular contact usually also accelerates the customer's decision-making process. However, too frequent contact can deter. The sense for the right intervals develops over time.
6. Predictions about future new business can be made.
Not all leads are the same. One project has already been verbally agreed upon, while another doesn't even have an appointment yet. One has a project volume of 2 days, and another over 100 days. Therefore, it is important to estimate the project volume from the beginning and enter it in the lead.
When you multiply the project volume by the probabilities, you get a value over the entire Sales Funnel. This total value serves as a good orientation when you want to have a number for the expected new business.
When you multiply the project volume by the probabilities, you get a value over the entire Sales Funnel. This total value serves as a good orientation when you want to have a number for the expected new business.
7. The question "Do I need to acquire more or not" is quickly answered.
The target value to aim for varies depending on the size of the company. It is advisable to always actively seek new leads as soon as the value is significantly below and to restrict acquisition activities or look for new personnel as soon as the value is significantly above.
Conclusion
Successful salespeople have built up a large network over the years and usually bring the corresponding soft skills. However, anyone can also be successful in acquisition with some discipline. With a Sales Funnel, you are well organized and won't miss any appointments. A glance is enough to assess the future order situation. The system takes the excitement out of the whole process, and a rejection is no longer seen as a defeat. The most important thing is definitely: Stay on it, stay on it, stay on it.
MOCO reflects the Sales Funnel described above:
In MOCO "Acquisition", leads can be reliably tracked from initial contact to the signing of the Proposal. Depending on the assigned stage of the lead, future revenues are predicted with different weightings.
One or more proposals can be created during the acquisition. Once the order is won, it can be converted into a project and later the associated proposals invoiced.
More information about Acquisition & Proposals in MOCO
One or more proposals can be created during the acquisition. Once the order is won, it can be converted into a project and later the associated proposals invoiced.
More information about Acquisition & Proposals in MOCO
