Lead Funnel Analysis
Lead funnel refers to the steps that individuals or organizations, within the target market, take during their journey from the first exposure to the brand till they make a purchase. The purpose of using the ‘funnel’ metaphor is to describe the drop in number at every subsequent step of the process.
The ability of an individual to evaluate the movement of the generated leads down through such a funnel, identify any gaps and problem areas, and suggest effective strategies to maximize the conversion rate, is known as his lead funnel analysis skills.
Why is lead funnel analysis important
Lead funnel analysis has come to be the missing puzzle piece for all kinds of marketing campaigns. This analysis helps to clarify and highlight for the businesses the most appropriate path for converting a lead into a sale.
It is quite predictable that all the leads generated through various advertising efforts do not continue through to be converted into a sale. Therefore, the use of ‘funnel’ metaphor is quite wise. It helps in devising multiple marketing strategies, each tailored for and targeted towards the top, middle, and bottom of the funnel particularly. For instance, the top of the funnel may represent people who need more awareness about the brand or product, the ones at the middle may have developed liking and interest but require more relationship building because they are not sale-ready, whereas, the bottom may represent the leads that were converted into customers but need to be retained through good post-purchase services.
How to improve lead funnel analysis skills
Following are some helpful tip for improving your lead funnel analysis skills:
- Dig deeper. For improving your lead funnel analysis skills and maximizing the number of conversions, you must dig deeper by breaking down the portions further at each funnel step. For instance, if the majority of leads or potential customers seem to be leaving the funnel at the same step, check for any problems and suggest improvements in the practices at that particular step.
- Never give up. If your potential clients tend to exit the lead funnel before making the final purchase, look for ways to bring them back in another funnel. Giving up on your prospects is never a good approach because they may not be gone for good. Make sure to keep them in the circle and alert them of any sales or discount offers of their interest.
- Follow up. Although mandatory for everyone, this tip is especially useful for e-commerce websites. Within the first few hours of the interest shown by a potential buyer, you must follow up with an e-mail (or by other means) in order to re-establish the connection with those who don’t seem to have developed trust for the business yet but may become sales-ready with a bit more effort.