Sales funnel
A sales funnel describes how the number of prospects shrinks step by step from first contact to purchase.
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What does Sales funnel mean?
The top of the funnel is wide (website visitors, say) and the bottom narrow (buyers). The ratio between steps, the conversion rate, shows where most people drop out.
A funnel and a pipeline are related: the pipeline shows the state of each deal, the funnel shows the ratios across the whole process.
Why does it matter to a small business?
A funnel helps decide where to put limited time and money. If many prospects arrive but few become quotes, the problem is in the first contact; if there are many quotes but few orders, look at the quote or the price. A small business then does not simply spend more on advertising blindly, but improves the step where most people drop out.
What does it look like in practice?
Details
Suppose a language school in Budapest gets two hundred visitors to its trial lesson page in a month (the numbers are only illustrative). Twenty of them sign up, ten turn up and five pay for a course. The funnel shows that most people drop out between visiting and signing up, so the school simplifies the sign-up page first.
How does HelloCRM handle it?
Details
HelloCRM's reports show deal counts and values per stage; the Page paths module builds step-by-step pages and measures how many drop out at each step.
Module: Page paths (paid module, price coming soon).
A CRM for small businesses in Hungary
HelloCRM is an online CRM made in Hungary for small and mid-sized businesses there, in Hungarian and English: the core CRM is free for good, with no time limit and no card, and it can be tried without signing up in a demo company full of example data.
Questions
What is Sales funnel, in one sentence?
A sales funnel describes how the number of prospects shrinks step by step from first contact to purchase.