Building a sales funnel for retail shop


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Topics: Analysis work shop Building a sales funnel for retail shop:

Building a sales funnel for retail shop

The main purpose of all the retail shops increase profits. One of the tools to analyze the effectiveness of sales points and to identify “weak spots” – the sales funnel. Read more in our article.

It is a sales funnel

What is a sales funnel:

Sales funnel – this is the distribution of the stages of the sales and clients at all stages of development: from the status of a potential customer before the transaction and transition client to permanent status.

Consider the option of building sales funnel store the example:

  1. The wide top of the funnel – the initial stage, the visual “familiarity” with the store – it can be just people passing by or those who saw the advertisement of the store in the newspaper, online, on banners, etc.;
  2. The level is lower and narrower means the next stage – when interested in store person comes in – and goes into the status of a potential buyer.  The number of people at this stage is greatly reduced, as not all those interested will come to the store;
  3. The visitor (potential buyer) who purchased the product becomes the buyer; it is the next stage, displayed even more narrow middle part of the cone. At this stage it is very important to organize the process of sales, so this purchase was not the only one;
  4. The narrowest part of the cone – the buyer became a permanent, one that is comfortable, pleasant and profitable to walk into your store and who would be happy to recommend your outlet to friends and family;

See also: How to increase conversion of visitors into buyers

A sales funnel is an effective tool that allows you to process trading activities to solve several tasks:

  • to control the sales process;
  • to analyze the results and stages of sales;
  • to forecast sales;
  • to monitor the activities of sellers, sales managers;
  • to motivate employees in all phases of sales;

Building a sales funnel usually starts with the development of criteria by which sales will be measured and analyzed:

  • The allocation of sales stages; Evaluation of the results of each stage;
  • Transition rate from stage to stage;
  • A clear algorithm of actions of the employee in the transition from stage to stage;
  • Data collection methods for the sales funnel;
  • Motivation system for employees, based on statistical data – what metrics the staff should aspire to.

Chitatyte more: What is a sales funnel

Thanks to clarity, built structure, continuous updating – the indicators of the sales funnel necessary to follow – approach to the management of sales is meaningful, the buyer is “grown”, it is the transition from status to status doesn’t happen by accident.

In addition, a sales funnel allows to predict the state of each of the stages, to plan the development of the trade process, to track the effectiveness of each of the sellers, consultants, the sales Department as a whole.

Building a sales funnel for retail shop:

Cycle sales funnel: key aspects the concept of the sales funnel

Let us consider the main stages of the sales cycle:

  1. The wide part of the funnel is all the potential customers of your store.  All these people – and there may be a significant number – still don’t know anything about your point, but among them there are already those who are interested in provided services or sold the product;
  2. In the second part of the sales funnel remain buyers, which is the first contact. This may be a “cold” call to your sales Manager, sending a message via e-mail list or a situation when the buyer calls back and “leads” inquiries about the company, interested in the particular service;
  3. In the next stage of the sales negotiation stage, managers discuss with the buyer rates, terms of service. It is important to interest him, pointing out the advantages of your company to stand out from competitors;
  4. The stage of conclusion of agreements is not final. Here, the client can still change their decision or to postpone the signing of documents for an indefinite period of time;
  5. “Payment” of goods or services.  This final stage of the sales cycle is the “narrowest” in our funnel. The “path” from a potential client to a buyer who has paid for the services, may take several months; 
  6. About the last stage of the sales cycle also can not forget. It is very important to make a simple buyer moved into the category of regular or VIP customers. For a person to be re-addressed it to you, managers also need to be done is to remind the firm to make “a courtesy call”, stating like a service or product to the customer, to treat the buyer more carefully and loyally, in every way trying to “keep”.

It is worth considering that buyers have their own special needs, and therefore, your sales funnel will change and be adjusted in accordance with the specifics of the work.

But it must be remembered that the stages of the funnel should coincide with the stages of the sales and in order to make it easier to analyze the numbers, all the data at each stage is necessary to consolidate the document.

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According to experts, it is best to “build a” sales funnel graphically.

To do this, there are now dozens of useful programs, including those already embedded in the CRM system.

It will allow you to create a detailed client database, which sistematizirovat the accumulated information about the client that will give an accurate picture of the needs of the person and will allow you to pick a product specifically for it.

Analysis of the sales funnel the main stages of the sales

In order to perform and adjust the available data, it is best to translate it into numbers.

The main numerical indicator to analyze the sales funnel is the conversion – the difference in the number of clients transferred from stage to stage.

The conversion rate is usually expressed in percent, but it can do the usual numeric calculations. Based on these data and builds a sales funnel.

For example:

The formula for calculation of the coefficient of conversion (CC) the first stage is as follows:

KK = the number who visited the store/passing

To calculate the transition of visitors into buyers can be according to the formula: KK = number of sales/number of visitors

How many customers have become permanent, we calculate using the formula:

KK = number of repeat purchases (e.g. discount cards)/total number of purchases

The figures give an idea about the level and usefulness of each of the stages of the sales and determine:

What number of potential clients and what stage is eliminated;

Why don’t they move on to the next stage;

What you need to do in order not to lose customers;

See also: 8 fundamental reasons for low sales in the store

The essence of the sales funnel.

Sales funnel: how to determine “weak points”

a sales funnel that is Funnel is a universal tool that helps the user keep track of which stages of the sales cycle “stopped”, there is a kind of problem and “dropping out” a greater number of customers.

So, “armed with” the consolidated data for each of the sales stages, you can begin to analyze and track the effectiveness of the marketing Department.

Now you have the following information:

The exact number of customers at each stage of work; You can track the conversion rate – that is, to establish what proportion of clients move to the next stage of the sales funnel;

To determine the duration of the work with the client at every stage – as an average for the firm, and General, to estimate the duration of the transaction;

To correlate the number of potential buyers to real customers;

To determine the number of successful transactions;

Comparing all these data, you can easily identify the “weak points” in the organization of the sales cycle, and then make adjustments to the specific employee,

Department and entire company as a whole.

For example, analyzing the first stages of the sales funnel, we can conclude that there is enough interest to buyers are your services.

How active on the website people come, attracted any attention to your ads and no need to change PR strategy.A sufficient number of new visitors is a good indicator for your website if the “visitors” too little, it will affect all of your sales cycle.

If, for example, your website comes to a sufficient number of visitors, but none of them acquiring your services or products, you should think about the correctness of information on the website.

If the interested company clients “drop out” at the stage of discussion, it is worth reflecting on the quality of services, pricing policy.

Why customers go to competitors? And what you can to entice a potential buyer?

For example, to specify special conditions or discounts, to improve the sales cycle. 

It may be the case in the competence of the staff should think about training managers negotiating or “dosemu” customers in those cases when it is necessary.

Building a sales funnel for retail shop

How to change the results of the sales funnel?

the stages of the purchase funnel

Using the sales funnel, you can easily find out what stages of the sales process in your store need improvement, and therefore it is easier to choose measures to correct the situation.

For example, to increase the number of interested in your store visitors, you need to consider is the sources, which will explore the potential buyer, to satisfy their need for the product or service.

Also attracting visitors will serve as the external transformation of the store, advertising pillars in the path of potential buyers, the distribution near the store flyers, pamphlets or leaflets etc etc.To the person who first came in your store, become your customer, you need to pay attention to the organization of the internal space of a trading hall: window dressing, the aisles between the shelves, the merchandise, sound, and sanitary condition of rooms, etc.

What matters is how wide and popular range of your product, how reasonable the prices of the goods, as visitor will be greeted and served by staff, which is additional to the shopping service.See also: How to boost in-store sales through additional goods.

Regular customers are those who have felt a clear advantage from the fact that they have become your customers. They are profitable, convenient and pleasant to walk into your store.

The buyer can “bind” to the outlet prices, loyalty programs (bonus system for regular customers), unobtrusive but helpful service.

Create a detailed client database using CRM system Business.Ru. Carry out a thorough analysis of your target audience, identify its exact needs, forecast demand, prepare relevant proposals and thereby increase sales.

Try all features of CRM system Business.Ru free>>>How to bring sales to a new level on the basis of the funnela sales funnel that is

After analyzing the remaining stages of the sales cycle, you can also draw the appropriate conclusions.

For example, if the client refuses at the last moment with your services at the stage of signing the contract, consider whether the written documentation, does not cause the buyer have doubts about any of the points of this agreement? In this area also will help to understand a sales funnel;

The data of the sales funnel is a good indicator of how the entire marketing Department and each employee in particular.

For example, why in the previous month, sales in the Department had the maximum number, and this they reduced to a minimum?

The information obtained in the course of the introduction funnel and a full analysis of your sales cycle, always help managers closely monitor the work of their employees at every stage;

Also analyze the reason why clients rarely do repeat orders of goods or services. This will help you “calls of courtesy” and feedback.Structure and analyze all the data obtained after the method of “sales funnel” will be introduced to the work of your store, you can enter the ratios for each of the stages. This will help you to monitor and identify areas for development.

See also: automation of the customer base with CRM

In conclusion, we should say that if sales funnel will operate on a permanent basis – weekly, monthly and quarterly basis – this will help diverse planning activities, rapid identification of problem areas in its work, the effective solution of all problems and improve the sales cycle.

Program to build the sales funnel

For the calculation of the conversion rate, the number of visitors and purchases you can use different methods – entering data into Excel spreadsheets or to use the modern programs of automation of accounting, which includes a special module on customer relationship management – CRM system.

CRM system – a program that allows you to compile a wide base of clients with all their data, records all calls, requests, applications clients, allowing to control work of employees, to track the efficiency of their work at each stage of the sales.

Currently, the market of information services are a sufficient number of programs to help manage sales and optimize the customer service.

Try the free CRM system from the Business.Ru. It will allow you to create a detailed client database, which sistematizirovat the accumulated information about the client that will give an accurate picture of the needs of the person and will allow you to pick a product specifically for it.

Possibilities of automation of accounting with the Business.Ru 

The Service Business.Ru is designed to help small and medium businesses.

Its constituent tasks:

automation of financial management;

the organization of the warehouse (or several warehouses);

managing customer relationships using CRM system;

accounting in wholesale and retail trade.

Business.Ru ensures that the movement of goods

– helps to manage purchases and sales,

draw up documents for contractors, to record the receipt of goods to the warehouse, take inventory,

keep records of alcohol through Russian and many more.See also: automation of the customer base with CRM

Specially for retail shop

Building a sales funnel for retail shop

How to change the results of the sales funnel? the stages of the purchase funnel

Using the sales funnel, you can easily find out what stages of the sales process in your store need improvement, and therefore it is easier to choose measures to correct the situation.

For example, to increase the number of interested in your store visitors, you need to consider is the sources,

which will explore the potential buyer, to satisfy their need for the product or service.

Also attracting visitors will serve as the external transformation of the store, advertising pillars in the path of potential buyers, the distribution near the store flyers, pamphlets or leaflets etc etc.

To the person who first came in your store, become your customer, you need to pay attention to the organization of the internal space of a trading hall: window dressing, the aisles between the shelves, the merchandise, sound, and sanitary condition of rooms, etc.

What matters is how wide and popular range of your product, how reasonable the prices of the goods, as visitor will be greeted and served by staff, which is additional to the shopping service.

See also: How to boost in-store sales through additional goods

Regular customers are those who have felt a clear advantage from the fact that they have become your customers.

They are profitable, convenient and pleasant to walk into your store.

The buyer can “bind” to the outlet prices, loyalty programs (bonus system for regular customers), unobtrusive but helpful service.

Create a detailed client database using CRM system Business.Ru.

Carry out a thorough analysis of your target audience, identify its exact needs, forecast demand, prepare relevant proposals and thereby increase sales.

Try all features of CRM system Business.Ru free>>>

How to bring sales to a new level on the basis of the funnela sales funnel that is

After analyzing the remaining stages of the sales cycle, you can also draw the appropriate conclusions.

For example, if the client refuses at the last moment with your services at the stage of signing the contract, consider whether the written documentation, does not cause the buyer have doubts about any of the points of this agreement? In this area also will help to understand a sales funnel;

The data of the sales funnel is a good indicator of how the entire marketing Department and each employee in particular.

For example, why in the previous month, sales in the Department had the maximum number, and this they reduced to a minimum? The information obtained in the course of the introduction funnel and a full analysis of your sales cycle, always help managers closely monitor the work of their employees at every stage;

Also analyze the reason why clients rarely do repeat orders of goods or services. This will help you “calls of courtesy” and feedback.

Structure and analyze all the data obtained after the method of “sales funnel” will be introduced to the work of your store, you can enter the ratios for each of the stages.

This will help you to monitor and identify areas for development.See also: automation of the customer base with CRM

In conclusion, we should say that if sales funnel will operate on a permanent basis – weekly, monthly and quarterly basis – this will help diverse planning activities, rapid identification of problem areas in its work, the effective solution of all problems and improve the sales cycle.Program to build the sales funnel

For the calculation of the conversion rate, the number of visitors and purchases you can use different methods – entering data into Excel spreadsheets or to use the modern programs of automation of accounting, which includes a special module on customer relationship management – CRM system.

CRM system – a program that allows you to compile a wide base of clients with all their data, records all calls, requests, applications clients, allowing to control work of employees, to track the efficiency of their work at each stage of the sales.

Currently, the market of information services are a sufficient number of programs to help manage sales and optimize the customer service.

 


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