4 Sales Funnel Leaks That Are Killing Your Business
Your website is leaking money. This is a fact that is keeping your sales team awake through the night. Actually, during the year 2014 about $4 trillion USD was lost in e-commerce due to shopping cart abandonment.
If you are aware that your sales funnel is leaking, here is a comforting fact for you: your competition is losing money as well. In fact, more than 65% of retailers have a shopping cart abandonment rate that is higher than 50%.
So don’t worry. It’s not your fault. The truth is – no sales funnel can be optimized to perfection. That is what makes the optimization process so exciting – you can always do better. This is why I am sharing with you a short but comprehensive list that will help you identify and fix your leaking sales funnel – before they kill your business.
Your Communication is Inconsistent
Let’s be honest – from time to time, we all get an email in our inbox that makes us wonder who the sender is. Sometimes we subscribe to demos, mailing lists and similar lead magnets that are targeting our interests and yet – we never read the terms and conditions text. This is why we are not surprised when we find some unknown solicitors offering products directly in our inboxes. In my opinion, 9/10 will open that email only to hit the unsubscribe button.
However, if you are the person who is pushing products and services with no actual plan of communication – don’t be surprised to find your subscribers opting out of your sales funnel in flocks.
For example, if your lead magnet is efficient in bringing you subscribers, your autoresponder should inform those subscribers about your future updates. One thing that you should always keep in mind is that 8 out of 10 decision makers in the B2B world prefer to find out more about your company through series of articles and informative and useful content.
So stay consistent. Don’t send too many emails, but don’t let your leads forget about you completely. Sending a biweekly email about your latest blog updates is quite enough to keep them thinking about your company. Presuming that you are publishing informative and useful content to leads that are interested in your industry – you will see that your email unsubscribe rate will decrease significantly.
Your Content Lacks Personality
Let’s perform a simple test. Let’s imagine that you are walking down the street, and you are approached by a person disguised as a giant brown rabbit dressed in a yellow shirt. What is this rabbit trying to sell you? Is it:
a) Chocolate milk;
b) Insurance bonds;
c) Muscle cars.
If you guessed a, or chocolate milk – you are right. Quicky is a famous mascot developed by the Nestlé company, and he is usually promoting chocolate milk (the Nesquik) or breakfast cereals. In fact, this is one of the most famous mascots of today, and this character has been around since 1973. If you guessed Insurance bonds, or Muscle cars – well, let’s just hope that you are not working in marketing.
The reason why the Quicky Bunny is good at selling chocolate milk is simple – kids find this character amusing. It’s specially designed for the youngest consumers, and the Nestlé company is investing in mediums that are appealing to this particular audience – cartoons, comics, games, etc.
This is why you need to define your brand’s tone of voice in accordance to your target audience. When your prospects click through to your landing page, they have to be welcomed in an appropriate fashion. Investing in your communication with clients is essential in the world of e-commerce. This is the only market that is growing at a double-digit percentage constantly, and it is already an industry that is generating more than $1 Trillion dollars annually. In this type of a competitive environment, mastering communication with clients has become an essential skill! So, don’t be surprised when your prospects turn to your competition simply because they are treating them better.
You’re Not Nurturing Your Leads
Now that we’ve established that you have to communicate with your clients often and in a correct manner, we have to question your focus. If your sales team is losing a lot of time and resources on prospects that simply aren’t that interested in your services – your sales funnel is leaking money. But how can you prevent this from happening?
The “simple” way to ensure that you are focusing your investments on the right targets lays in the implementation of marketing automation. While marketing automation is anything but simple, it is also a mandatory element that requires your absolute attention. In simple terms, here is how marketing automation can help your sales funnel (and your business, ultimately):
- It can clearly define specific stages in customers’ life cycles;
- It can clearly define specific stages in sales cycles in general;
- It can help you set up future communications based on the current level of interest of your leads;
- It can help you find and focus on better leads!
If you are looking for actionable tips on how you can nurture your leads through marketing automation, you can find more information about lead nurturing here. However, the primary goal of marketing automation is to leave you with enough room to invest your time in producing content and focusing your efforts on high-quality leads. So, even if your marketing automation is all set up and you are nurturing your leads throughout every phase of the sale, there is still a potential leak in your sales funnel that needs to be attended to as soon as possible.
You’re Not Pursuing High-Quality Leads
Do you know what is the average conversion rate of a cold call? The answer might surprise you – approximately, it is not bigger than 1-3%. So, statistically, 1 out of 100 cold calls that you make today will result in a sale. How do you feel about this statistic? Do you believe that your sales team should waste their time and your resources on 99 low-quality leads to make that one (1) sale? This system is outdated, to say the least, and if you are not pursuing high-quality leads, your sales funnel isn’t just leaking – you are virtually drowning your business.
The first thing that you need to do is determine your ICP (Ideal Customer Profile). When you have an overview of how your ideal customer acts and communicates with your brand and company, establishing trigger signals isn’t that hard. (With the right marketing platform, this step can also be automated).
The second thing that you should do is constantly measure your customer to conversion rate. You should perform this throughout every marketing channel individually. The trick is to focus your sales team and their efforts on your best-performing medium. Additionally, you should also invest time in marketing channels that could perform better.
In this way, you can provide your best quality leads with your undivided attention. At the same time, you should be optimizing your marketing funnel to generate more quality leads – but that’s a whole different story.