The Sales Funnel…the what?

     Many of you have heard of a funnel cloud…but what about a Sales Funnel?  A sales funnel is simply a sales process that uses a systematic approach to sell products and services.  There is a growing amount of published literature available that approaches Sales as a process, from the view of an engineering discipline.

     Why would you want to use this process?  Because you would have a well thought-out process that would include management of both the seller and buyer, standardized customer interactions, and measurable revenue generation.  One of the major advantages of approaching Sales as a process; there are a multitude of tested design and improvement tools available from other successful process-oriented businesses.  Applying the familiar principles of quality and process engineering should also work for a sales process.

    The steps or stages in a sales process will vary for each business, but they would usually follow the following elements;

 Initial contact
 Application of Initial Fit Criteria
 Sales lead
 Need identification
 Qualified prospect
 Proposal
 Negotiation
 Closing
 Deal Transaction

Or perhaps some alternative steps could be the following;

 Prospecting/Initial contact
 Approach-planning of the sale
 Approach
 Needs assessment
 Presentation
 Meeting objections
 Gaining commitment
 Follow-up

In general these are the typical steps taken in traditional sales, but they may vary depending upon the situation.  Mapping your process provides a starting point for analysis and continued improvement.  The elements in the list above have been described and flow-charted in published literature.  In at least one example they depicted a cross-functional approach that integrated areas such as sales, marketing, customer service, and information systems.

A sales process can reduce risk by controlling the flow of deals based upon information or execution of procedures that move you to the next step.  These steps walk a sales person from meeting the client to closing the deal.  An unpleasant sales experience can be analyzed and, in some cases, shown to have skipped essential steps.  A solid process can also dramatically impact forecasting accuracy and predictability in revenue results.

Some additional sources of information on this topic include;

Mind Tools, Essential skills for an excellent career

Entrepreneurs-Journey.com, The Sales Funnel Explained

Math Marketing, Sales Funnel Calculator

Sales Management Insight, Sales Funnel

The Funnel Principle: What Every Salesperson Must Know About Selling , by Mark Sellers

Success Secrets of the Sales Funnel: The Proven, Scientific Selling Method of Going from "Hello" to the Contract , by Ray Leone

Keeping the Funnel Full: The Definitive Authority on Solution Selling, by Don Thomson

Use one of the sales processes described in the publications above, or develop and tailor a Sales Funnel for your organization.