Steps in the Sales Funnel Defined

What They Are and What They’re Not

By Rao Wu

The sales process can be broken down into key steps on your path to closing a deal. But as important as measuring these steps (for example number of leads it takes to close one deal), it’s essential to clearly define what each step means for you and your sales team. Here’s a sample of steps in the sales funnel with descriptions of what they represent.

(Be sure to also check out the complementary article “Sales Process Diagnostics” in Wheelhouse Resources, which focuses on key questions to ask to improve your process.)

Leads

A Lead Is:

An opportunity that shows you your prospect’s status quo has changed. When a business product buyer submits a lead, they’re doing so because a pain or growth scenario has occurred. They’re ready to get information on a product that will alleviate a hurt or help them achieve growth.
Much better than a cold call. People don’t submit leads (or request information) on business products just for the fun of it. (At least no one we know.) Unlike making a cold call from a list, where you truly don’t know if the prospect is in the market or not, when you receive an Internet lead, it’s from a person who has raised their hand, provided their contact information, and specifically asked for more information.
More than just contact information. A lead contains information beyond the contact information. For example, with the name of the business, you can easily find additional information, such as business size, location, niche, etc. And good lead providers will provide supplementary information in notes, such as purchasing time frame and product preferences. Leads represent immediate opportunities, but it’s still important to read through them thoroughly before jumping on the phone to make contact.

A Lead Is Not:

A guaranteed deal. Leads should be viewed as golden opportunities, but you still need to respect the necessary steps that need to be taken on the path to closing them. Your buyer’s priorities may shift, timing for purchase may change, or you may learn they’re not qualified once you get into a deeper conversation. It’s also important to keep in mind that a lead that isn’t ready to close in the next month is not necessarily a dead lead.
Just one person. Business leads should be viewed as not just a connection with one person at a company. They should be viewed as your entrée into a relationship with an entire organization - an entire account. Just as someone looking for a job does not view a recruiter as the only person they should meet and connect with at a company where they want to work, you should view your lead contact as your first step to a greater opportunity. If you’re lead is not the person who will make the final decision, be sure to ask who that person is and try to connect with them.

Attempts to Connect

An Attempt to Connect Is:

An attempt to reach your prospect by phone, including leaving a voice mail.
An attempt to reach your prospect by email.
A series of attempts over time, which should be planned ahead and counted in a given time frame. Persistence is a cornerstone of the sales process, yet it’s surprising how many give up after two weeks or just six attempts to connect.

The most successful vendors we see, in general, attempt to connect with their prospects at least 26 times (by phone and email to increase the odds of making contact) in the first two months of receiving the lead. While it’s true the buyer controls the flow of interactive communication, the seller can always try to influence it, and the best way to do that is by not giving up.

And even after attempting to connect to a prospect 26 times, the best organizations will continue to market to that prospect. Usually, at this stage, drip marketing or additional lead nurturing steps go into effect, because leads are not considered “dead” until the prospect says, “No need to call me anymore.” (Be sure to see the article “Lead Nurturing” for more information.)

An Attempt to Connect Is Not:

Failing to leave a voice mail.
Just sending blast/bulk emails.
Something that should be done without a plan or process in place in terms of frequency and timing of attempts.
Something that should be given up after a few weeks and fewer than 20 attempts.

Connects

A Connect Is:

The start of the relationship with your prospect and the time to introduce yourself and start building rapport.
The opportunity to ask questions in order to assess your prospect’s situation: establish whether it’s a pain or growth scenario, and where they are in their buying process.
The opportunity to set up the next step, such as providing additional information, planning a follow up call, or planning a meeting.

A Connect Is Not:

Necessarily the time to force the meeting if your prospect is not ready.
Not the time to scare your prospective customer away with an aggressive sales pitch just because you finally got them on the phone.

Proposals

A Proposal Is:

Where the rubber hits the road. It’s your opportunity to state in writing how your solutions will address your prospect’s needs and help them hit their goals.
The opportunity to demonstrate, with facts and figures, how you’ll deliver ROI.
The opportunity to meet in person if appropriate.
The beginning of the pipeline process to closing deals.
A valid assessment of a lead’s quality.

A Proposal Is Not:

Something that should be long winded and complicated.
Where you should brag about your company history and products before addressing your prospect’s business needs.
A guaranteed deal. Even when you finally get to this stage, there is still an element of the unknown – a competitor could undercut you in price, your prospect’s budget may shift, etc. The key is having a healthy proposal pipeline – because you know some of the deals will close.

Deals

A Deal Is:

The time to celebrate for a job well done.
The opportunity to start building loyalty with your new customer.
The chance to start thinking about how you will address their ongoing needs by providing enduring value.
The time to start thinking about when you’ll ask for referrals, testimonials, and repeat business.

A Deal Is Not:

The end of the road. Keeping current customers happy and engaged is far more valuable and less resource intensive than losing customers and having to win new ones.
The time to sit back, put your feet on your desk, and rest on your laurels (at least not for too long.)