SALES FUNNEL INSIGHTS
Companies generally consider sales an important vital sign of the overall health of the business. But it is rare that companies will dive into the contributing factors and break down the sales performance into meaningful data. Further, developing strategy for improvement and/or growth often isn’t derived from facts, numbers, and data, but rather instinct and assumptions.
There are many ways to evaluate the sales performance of a company other than actual dollars of revenue generated. Here are some examples:
Sales by personnel
Sales by region
Sales by product
Sales by customer type
Effects of strategy on each analysis point
Let's dig into some data as an example. The example below is a visualization of a fairly typical sales funnel for a company that sells its products online using digital marketing as its main source of customer recruitment.
The values on top represent the total market or target audience for that product. Below that is the “reach” or the number of people who have seen or been sent a campaign or an ad for the product. Click-through rate is the number of potential customers identified through this campaign who clicked to order or learn more about the product and may be considered “engaged.” Finally, at the bottom, you can see the total number of customers who bought something. For each metric you can see the total number of customers who were in that stage, just below it, the percent of the target audience represented by that stage, and below that, the percent change from the previous stage.
From this graph, we can easily see that the biggest challenge this company is facing is converting the number of customers who are reached to get them to click on the ad. If this number is deemed significant (which would need to be validated by past conversion rates, industry standards, and the type of digital marketing campaign), sales strategy should be targeted at adjusting campaigns that will “speak” to their target audience OR re-evaluating their target audience. In other words, their current target audience is not being engaged by the content being posted, and is not clicking-through to the next stage. And according to the existing data, 28% (56 out of 203) of customers who click through make a purchase. Therefore, by capturing just 5% more of the audience that is reached (234 more clicks), you more than double that click-through rate, potentially increasing the number of purchases from 56 to 128 (129%)!
This is just a small example of analyses that can be made from the data in a sales funnel and the strategies that can be developed to improve sales. Start digging into your data a bit further separating by the examples listed in the beginning of this article and reach out with any questions!