ՀՀ-ում միջազգային որակի կրթության ապահովման իր առաքելությունը
BSMI-ը իրականացնում է իր ամենակարևոր ռեսուրսի՝ դասախոսների շնորհիվ։
Մենք մշտապես ոգևորված ենք՝ մեր թիմը համալրելու ոլորտի առաջատար մոտիվացված մասնագետներով։
Եթե ցանկանում եք դառնալ BSMI Team-ի անդամ, ստորև լրացրե՛ք հայտը, և մենք կապ կհաստատենք Ձեզ հետ։
Թո՛ղ տվյալներդ, և մենք կապ կհաստատենք քեզ հետ:
its essence, and its role in business.
The sales funnel is a marketing model that represents the movement of a buyer through the stages of the sales process, from the first contact to the completion of the transaction.
The term was initially proposed in 1898 by E.S. Lewis as the "consumer funnel," which indicated the buyer's journey from consideration to purchase—awareness, interest, desire, and action.
What does the sales funnel look like?
The graphic representation of the funnel resembles an inverted pyramid, which can be visualized as follows:
To explain this with the above example, in the first stage, there will be all the people who have a demand for our product (e.g., 1000 people).
However, not all of them know about our store (e.g., 700 people).
Why is the sales funnel necessary?
The funnel is a perfect tool for analyzing the effectiveness of each stage of the sales process, from the first contact to the final sale. It helps identify where the greatest loss of potential customers occurs, uncover the reasons for that loss, and draw conclusions about the quality of management and the intensity of efforts applied at each stage of the sales process. A clear understanding of the funnel not only helps pinpoint the reasons for failures post-factum but also allows businesses to forecast potential losses and take proactive measures to prevent them.
What stages does the sales funnel include, and how to create your own?
It should be noted that there is no universal funnel schema, as each business is unique in terms of its scale, industry, communication channels, sales process, and so on.
In one case, it could be an online store with various advertising channels that lead to the website, and in this case, the customer interaction chain is quite long (for example: viewing the ad – clicking through to the site – browsing the catalog – adding the product to the cart – registering – placing the order, making payment).
Another example could be a local beauty salon without any communication channels, and the chain is shorter: awareness of the salon – visiting/using services – making payment.
How to create your own funnel
Only one step is needed – to visualize the customer journey, break the business into stages (considering the existing communication channels), and select the most measurable ones. The journey starts with the first stage – identifying demand, raising awareness, and so on, and ends with the purchase.
What indicators should be measured
The sales funnel indicators can be classified into the following categories: quantitative and qualitative.
Certainly, the first step is to analyze the sales funnel data, meaning calculating the conversion from one stage to the next:
Quantitative indicators
Many forget that, in addition to quantitative indicators, there are also qualitative ones, which are even more important. It is the qualitative indicators that allow us to understand the reasons for losing customers. Clearly, the more demand there is for our product, and the more people know about us, the more people will visit our store and make a purchase. This is the theoretical part, but in practice, it often happens that months are spent on advertising, but when people come to the store, they don’t like the service provided by sales consultants. It is at this point that the majority of them are filtered out.
It is necessary to develop criteria for analyzing the qualitative component (website usability, order fulfillment forms, service quality, etc.) and continuously analyze each stage to enhance the qualitative aspect of the entire sales funnel.
For example, knowing that only 0.48% of people who are aware of the store make a purchase, two actions can be taken:
- Periodically increase the budget allocated for advertising campaigns to raise awareness, so that a higher percentage than 0.48% will make a purchase.
- Focus on improving the qualitative component of advertising campaigns, so that with the same budget, more people can be attracted to the product.
When running offline activities, numerical calculations can be a bit more complex, but it’s still possible to track visitor numbers through surveys (e.g., where they heard about you), offering discount coupons if customers provide their details, using QR codes, and so on.
When it comes to the internet, let’s consider a typical example of a sales funnel to determine the calculation methods.
Below, we will discuss the calculation methods for each metric.
Targeted Transitions / Transitions to Website * 100% = Conversion from "Transitions to Targeted Transitions
Calls, inquiries / target conversions * 100% = conversions from "target conversion to calls/inquiries"
the advertising budget and focus on more effective channels.
Transaction / calls, inquiries * 100% = conversion from "inquiry to purchase
As we pointed out, it’s very important to monitor the qualitative aspect of each stage.
What to do next
It’s important to remember that the sales funnel is one of the most effective tools for business forecasting. Once you’ve gathered accurate data from the calculations, it helps continually increase conversion at each stage and differentiate yourself from competitors at every step. Thoughtful use of this tool will enable the business to reach a new level in a very short period.
