Sales Funnel: How Healthy is Your Forecast

The concept of Sales Funnel has been used for ages to attract more customers and increase clientele. Even people who aren’t much acquainted with your product are lured towards buying it via sales funneling. It depicts the journey of a customer from first touch to final contact. The first phase of a simple sales funnel consists of unqualified leads, the middle of the funnel represents qualified prospects and the bottom third represents customers. This funnel, as a whole follows the same principle; uninterested customers drop out of the bottom.

Deemed as one of the most important concepts in sales, it helps us widen our array of customers by taking them through a process which leads them right to their destination. It also helps us predict the number of customers by calculating our conversions and forecasting our sales but, the question is, “Is your funnel healthy enough?”

[Tweet “Only a healthy sales funnel will give you the power of reliable predictions and assumptions about future”]

Maintaining a healthy sales funnel helps us make accurate forecasts as we can’t always just rely on predictions.

True strength cannot be achieved without great health. So, to check if our sales funnel is strong enough to bring us more business in terms of customers, we need to first check for its health. In order to do so, we need to mark a checklist which determines the different factors involved in pipelining our sales. The contents of this aforementioned checklist shall be discussed below:

1) My funnel is well populated on every level 

A healthy funnel must have enough prospects in it on all the levels. Only focusing on closing the deals at the bottom would -in time- leave us with no prospects at the beginning of the funnel. This way, we would have to start from scratch every time we’re done with bottom third portion.

Sales Funnel

2) It’s alive and moving

Along with keeping the funnel full, we need to make sure it’s moving. Don’t let any prospect spend too long on one stage. Your utmost effort should be directed towards moving prospects down the funnel as fast as you can to speed the process up and screen out prospects who’ve stalled in one stage for too long.

3) In case I run out of leads, I have filler prospects at the top

There might come a time when the leads in your funnel move rapidly towards the last stage that the top starts shrinking. To prevent this, we need to have filler prospects ready to fill the gaps left at the top which could even be people you’ve never even contacted before.

This was an overview of what a sales funnel checklist could look like. You can make your own by adding different factors to it. This would make your job much easier because the more you know about your funnel’s health, the more you can improve the number of deals closed.

Always keep your sales funnel up to date and review it regularly.

Checking the health of your sales funnel is of paramount importance as sales forecasts aren’t always accurate. Market trends take seconds to change and when they do, your funnel would be the only thing that would save you the trouble of designing a forecast all over again.

Subscribe to Fileboard’s blog for more updates on Sales Funnel and related topics to get timely updates.

Hasan considers Fileboard his second home and is working here as an inbound marketing expert. He has an academic background in traditional finance; however, his work experience from quite a long time revolves around startups, digital marketing and advertising.