Why Are Funnel Metrics Vital to Marketing?

In sales and marketing, funnel metrics are one of the essential tools.

Funnel metrics is a marketing strategy that helps salespeople route a customer’s buying journey. They are conversion, volume and velocity rates. Now funnel is a crucial tool in marketing. It helps us understand where we should invest. And, also gives us a more precise depiction of how business works.

An insight into the concept of funnel metrics :

We need to go through the basics to understand funnel metrics offers better. In a basic sales funnel, we have four stages:

·        Awareness:

This one is a vulnerable stage. The customer is not sure that they want to buy what we offer. They become aware of the products and services through us. They may have heard about us from different advertisements in newspapers. Or from any acquaintance.

The customers are considered potential leads that will help us advance to the next step of the funnel metrics.

·        Interest:

The assessing stage, or so it is called. At this stage, the customer has quite the knowledge about the company. They are thorough about what services we have to offer. This stage is the make or break deal. If customers feel that our product meets their requirements, they will ask around.

This is the stage where they inquire even more and ask around for information. The sales team is up for this stage. Because whether the customer buys or not depends a lot on them.

·        Decision:

Our customer now has enough knowledge about our company and services. This is the self-assessment stage. The prospect asks themselves if the product is worth the price. Many other companies are also available. What are their packages? If the other companies are selling them their requirement at a lower package.

The sales team again comes into play for this stage. Members of the team should be in constant touch with the client. Always have timely follow-ups of the prospect. And different campaigns to promote our product so that the customer is sold.

·        Action:

This is the final stage of our customer journey. This stage determines whether our marketing strategies are fruitful or not. All of this depends on our past actions and campaigns. Whether the customer buys depends a lot on our sales strategies.

Using funnel metrics gives us an insight into the thinking of our customers. What were their thought processes throughout their buying journey? All of the information gained helps us to craft appropriate messages. The messages that will convert the customers into buyers.

If the prospect refuses to buy, it is on us to look back. We need to see where we fell short, whether the customer or the company. If necessary, bring strategic changes.

How to calculate funnel metrics?

–      Entrance:

This can be defined as the starting point of a funnel. These are the number of leads that enter our sales. Like how did the customer find out about us? From advertising or through a friend. We can calculate our entrances by summing up the number of leads we reached in various ways at a time.

–      Conversion rate :

One of the most convenient methods. We have to find out the total number of leads and conversions. We divide the conversions by lead and then multiply by 100. The percentage we get is our conversion rate.

Conclusion :

Sales funnel metrics apply to all kinds of businesses. Our goal is to help our prospects through each stage of their buying process. Having a sales funnel metric at hand helps us infer our business better. We can improve our shortcomings and strategize better. So as long as you are selling a service or product, you are a sales funnel.