{"id":2290,"date":"2014-02-10T20:00:28","date_gmt":"2014-02-10T20:00:28","guid":{"rendered":"http:\/\/somametrics.com\/clone\/?p=2290"},"modified":"2020-03-02T23:32:48","modified_gmt":"2020-03-02T23:32:48","slug":"fix-sales-funnel-process","status":"publish","type":"post","link":"http:\/\/somametrics.com\/clone\/fix-sales-funnel-process\/","title":{"rendered":"6 Steps to Streamline Your Sales Funnel Process"},"content":{"rendered":"\t\t
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The Issue with Funnel Bloat<\/b><\/p>

Many of the sales managers I have worked with at over 100 technology companies believed that having more deals in the sales funnel translated to a greater likelihood of hitting their sales goals. While they looked at the size of the sales funnel (revenue potential), they forgot to consider when the deals were put on the sales funnel. They also neglected to determine if the deals were really viable.<\/span><\/p>

In general, the rule of thumb is that sales funnels should be about 3X-6X the revenue objective to ensure that revenue targets are met. Most of my clients showed me sales funnels that exceeded this range. At first glance, I thought that the Sales Managers were doing well at managing sales funnel growth, but as I browsed further, I discovered that 80-90% of the deals were over 2 years old and not viable. Week after week, these Sales Managers would review the deals, and week after week their Reps convinced them that the older deals would close at some point in the future.<\/span><\/p>

The next issue that I uncovered with my clients\u2019 sales funnels was the viability of the newer deals being added to the funnel. After the initial call, Sales Reps should be validating the quality of the lead. Questions to determine viability can vary: Has a decision maker been contacted? Is there real need and pain established? Is the prospect looking at solutions to solve these problems within a reasonable time period? Did the prospect indicate some interest but didn\u2019t have a real need?<\/span><\/p>

One of my clients believed that every prospecting onsite meeting was a true indicator that the prospect was interested in the solution. The Sales Manager required that a quote\/contract be left with the prospect after every meeting. When I worked with my client, I found that the Sales Reps did a good job of \u201cshowing\u201d the solution. However, they were ineffective at qualifying for need, interest, decision process, and timeframe. This client\u2019s prospects were in the State and Local Government space, where prospects are more willing to meet and see presentations. My client had hundreds of deals on the sales funnel; however, he never hit his sales targets.<\/span><\/p>

Finally, the last issue that I uncovered was movement of deals from the top of the funnel to the \u201cclosed\u201d or \u201cclosed-lost\u201d stage. \u00a0Many deals were stalled in the various stages of the funnel prior to \u201cclosed\u201d or \u201cclosed-lost\u201d for many months or even years.<\/span><\/p>

These funnel symptoms created a false impression that the client\u2019s sales funnels were healthy and viable. These issues arise when a Sales Manager lacks a good sales methodology or has not made sure that their Reps understand the methodology. In any case, all three symptoms kept my clients from hitting their targets.<\/span><\/p>

6 Steps to Cure the Sales Funnel Bloat<\/b><\/p>

Even though Funnel Bloat can be deadly to a sales team\u2019s ability to hit targets, it can, fortunately, be cured. Follow these 6 steps to continue finding leads and ensure that you don\u2019t fall victim to Funnel Bloat:<\/span><\/p>

STEP 1:<\/b> Develop a sales methodology that works for your company.<\/span><\/p>

Determine the following:<\/span><\/p>