Sales funnels help business development in several ways. I grew up in the 90’s, learning how to do door to door sales, and other type of sales techniques. I know that when I first learned about sales funnels, it was more of a process that help take a certain group of prospects and move them thru a funnel towards making a sale.
With the new technology in communications and software, I believe even more that sales funnels help business development in many ways, and have taken a new shape and function in the business development world.
Business development is primarily focused on building and growing a business in with the use of expanding into new markets, growing leads and sales and finding new business partnerships and strengthening them.
I have felt that Sales funnels help business development for a long time, and i think that it is only going to help even more in the future. I wanted to discuss some ways how sales funnels will help your business, no matter what type of business that you have.
Sales Funnels Help Business Development
First, i want to mention that the most complete sales funnel process that i have seen in my 20 years of being in sales, is the customer value optimization funnel. I first hear about this term from Ryan Deiss, and it is foundation to building a successful business. The reason why I say it is foundation, is because it doesn’t leave out any steps that old school sales funnels incorporate. The old school sales funnel models mostly focused on take a prospect and moving it thru the funnel to generate a sale.
The Customer value optimization model helps build the relationship with the prospect before a purchase is made. It then offers a small offer, a core offer, and then a profit maximizes and then leads the prospect back for other repeat sales or different offers, in the attempt to sale that prospect over and over again.
The Key take away is that most business are afraid of marketing because of the high cost of acquiring a new client. In old styles of sales funnels , the funnel ended with a sale, a single sale and that was it. SO the cost of acquiring a new client needed to be at least 50% lower than the lifetime value of that customer.
The new style of sales funnel with customer value optimization is extremely powerful because it’s main goal is to increase the lifetime value of each client so much, that the business can afford to outspend their competition on acquiring new customers.
Not only that, it continues the relationship with that client, to the point of turning them into a lifetime client, that. Continues to spend over and over again, and also giving referrals and testimonies to the business. This is where the big money is made. The younger companies always try and make the money up front, but the real money is made in the follow ups, repeat business that generates referrals.
So, the sales funnels help business development in many ways. For starters, lets say that every great salesperson has a systems or process for their sales. They usually build rapport, uncover needs and desires, and then they tell some type of story that will get the prospective buyer open to listening to new options. The sales person then will give some type of presentation of themselves, their company, their products, then make some offers, and if they don’t complete the sale, then they have some follow up work to do.
What sales funnels do is they help perfect this process, and automate it. In the old days, like 10-30 years ago, salesmen had call rooms, receptionists, salespeople and marketing team that helped pull these “sales funnels” together. It was a pretty massive operation and it involved many people.
The old saying, a team is only as strong as it’s weakest link” holds true to this scenario. I’ve worked for companies in the past, high pressure sales companies, just to learn how to sale, and how not-to-sale. What I learned was very interesting. I learned that sales is mostly a communication and leadership thing. A leader is usually very good at finding out problems and moving people , or “influencing them” in a way that benefits them and a large group of people.
So, hang with me here, be cause I want to make a point.
Sales funnels are essential a process or system that helps move people thru a process of transformation. That’s it.
If your daughter sets up a lemonade stand your drive way,
and she get’s her friends to stand at the only entrance and exit of your neighborhood and hold signs and wave traffic thru,,
and they stop and buy, and then she give them a coupon to save 15% off the next round of drinks next week, that is a sales funnel.
So, what brings so much excitement and energy around these topics today is the fact that you have social media and a Global audience now.
That lemonade stand is a Website, something that has one landing page, on offer, and one desired outcome, and then move them down the funnel. The traffic that people focus on isn’t coming out of your neighborhood, it’s all over the world.
It’s also very easy to get specific on what type of traffic you target.
Imagine if your daughter’s friends in this scenario only focused on sending people with new cars to the lemonade stand. That’s Targeted Traffic
If the conversion rate on them were higher, and you paid her friends so much money every time they sent someone over to the stand, then you would track those conversion or closing rates, and you would also keep up with how much money you sold each customer.
Then you could start scientifically figuring out how to make more profit. Which corners to advertise on, what type of cars to target, what time of day, what day in the week, what months out of the year… etc…
SO, this is one little cute story to talk about sales funnels.
It kinda makes the point of what sales funnels do. It also gives you some perspective. When you do sales funnels digitally, and you also have a way of keeping up with the traffic that you send, how much it costs, and how much you are converting, then you are in a position of making a life changing business.
Why Customer Value Optimization is the Best Sales Funnel Model
If you go back and look at the other blog about customer value optimization, then you will understand that the goal of a sales funnel isn’t to make money off the initial sale. It is I to get the initial sale to cover the cost of marketing, and then you make a more expensive offer, and another offer, and you make that. Sale repeatedly. When you accomplish this, this is when you can achieve Financial Freedom.
Warren Buffet once said that if you aren’t making money in your sleep, then you’ll never achieve financial freedom.
I hate saying this, but I have to agree. I have seen too many successful people get laid off, and even successful entrepreneurs making half a million a year, and when they retire, the money eventually runs out. If you don’t have a way to make more money than your lifestyle needs, without you working all of the time, then you will have a hard time ever becoming financial free.
Sales funnels help business development in the sense that they work while you are asleep if you build them the right way. The way we did them in the old days worked because that was all we had. Nowadays, you have so many great automation tools at your disposal, and at a very affordable price.
IF you think click funnels or running some ads on Facebook is expensive, try hiring a canvassing team to go out in neighborhoods and knock on doors, and send some salesmen in their homes to try and sell them something. That is very very expensive, it’s very hard to track, hard to duplicate. IF you have never heard of clickfunnels, You probably should check the software out, it is the most powerful sales funnels software I have seen in the last 10 years. You can checkout a Free 14 day trial here.
Sales Funnels are more of a marketing and sales process than a software. I know that sometimes Marketers get confused about this, and they think that sales funnels may be a software or an app, but remember, Sales funnels are a Strategy and process to achieve a desired goal… SALES AND REVENUE!
How does Sales Funnels Help Business Development?
Before I answer this, let’s first discuss what Business Development Is. Business Development has a few different definitions.
Business development is the creation of long-term value for an organization from customers, markets, and relationships. Business development can be taken to mean any activity by either a small or large organization, non-profit or for-profit enterprise which serves the purpose of ‘developing‘ the business in some way.
For a Company to grow and devleop, it must create a duplicatable system that allows them to create value for the markets it serves. Sales funnels allow businesses to create a duplicatable system that helps them spread their sales messages far and wide. It helps them Leverage their marketing and sales message to an audience with predictable results.
The best Sales funnels in my opinion are digital. The reason is because they are easier to track, Adjust, run Test against each other, and Scale. I say Scale, meaning, when you find a Sales funnel that is double it’s money, you basically have a money machine at that point.
A lot of old school marketers and sales guys over look the power of digital sales funnels some times, and I think this is a Trend that will happen. A lot of companies still have sales professionals, but the great benefits of sales funnels is that it allows one person to be in many places at a lot of different times, so when they do sit down on the phone or at a table with someone, that person is already warm, informed, and ready to make a decision.
Back in the earlier days, I still had to go out to peoples homes, and give cold presentations. The presentations were 2 hours long, and by the end of them, I was exausted, the prospects were exhausted, and I was instructed by my company that i worked for not to leave without an answer. IF they said now, I had to call the office and get a sales manager to make one final attempt to close the deal.
This strategy was almost ‘cave man like’ to me. It was very uncomfortable. You had to cram to much information in front of the client at one time. Usually the client had so much information, it would make it difficult to make a decision.
Now, we have systems that are more automated with video sales letters, automated webinars, and email automation, and now we have Facebook messenger automation, where we can have a long conversation with the prospect, but we actually are just letting them consume content at a very slow and easy pace, and by the time they reach the end of the digital sales process, they are usually ready to buy. If they aren’t, they don’t book a call or an appointment and you don’t waste your time trying to sale something to someone that doesn’t qualify.
If you have question about how you can improve your current sales funnel, I would love to find out more about you and your business. We can disucuss what systems you are currently using, and what your bigger goals are for the future and design a strategy to get you there.
You can book a Free Strategy Call Here with Jeremy Coates