The funnel is the visual representation of how a sale proceeds from customer awareness to customer action.
1. Draw a funnel (as shown on the front). The width represents the amount of customers included.
2. Define your “unqualified prospects” on the top. These are people you think might need your product but you haven’t spoken to yet.
3. Define your “qualified customers” on the button. People that have paid for and received your product – it might be that you don’t have any yet.
4. Define steps in between. What are the sales and delivery steps? How many first calls/mail lead to an appointment? Everything from cold calling, emails, first meetings, pitches, iterations to the final contract assignment is part of the funnel. Keep track of how many people drop out and the time needed.
In the beginning and during the sales process.
Understand the whole sales process, define the key sequential steps.
Know your market and customers.
Helps to define problems in your sales pipe over time.