Are you struggling to get people through your sales funnel? Or have you managed to get them in, but they’re not converting? If you’re facing any of these sales funnel challenges, then this post is for you.
Sales funnels are among the most important aspects of any B2B business, yet they are often one of the most neglected. A well-oiled sales funnel can be the difference between a successful business and one that barely makes it.
Several challenges can arise at each stage of the sales funnel. In this post, we’ll look at some of the most common ones and how to overcome them.
Let’s start with the basics.
The Basics of Sales Funnel
A sales funnel is a method for tracking the progress of potential customers as they move through different stages of the purchasing process. It begins with a wide audience and gradually narrows down to a smaller group of individuals who are more likely to make a purchase. By charting the journey from initial contact to final sale, businesses can gain a deeper understanding of the needs and motivations of their customers.
This knowledge can then be used to create more targeted and effective marketing campaigns. Additionally, sales funnels allow companies to identify areas where potential buyers may be dropping off, enabling them to make changes to improve conversion rates. The funnel typically comprises several stages, from initial contact to final purchase, and while the stages may differ from one business to another, the four main stages are awareness, interest, decision, and action.
Awareness
At this point in the process, potential clients recognize an issue or requirement. For instance, an individual may realize that their current software is outdated and is no longer backed by the developer.
Interest
After identifying a problem or need, the individual will commence the process of searching for possible solutions. This may involve consulting various sources such as online articles, evaluating different options, and soliciting opinions from trusted individuals such as friends or relatives.
Decision
Following their initial interest, the customer evaluates their options and chooses the one that best suits their needs. They may take into consideration factors such as cost, capabilities, and feedback from other users before making their final decision to purchase.
Action
Here, the customer uses the product or service they purchased. If satisfied, they may continue to use it and even tell others about it. If they are unsatisfied, they may return it or request a refund.
Yes, sales funnels are necessary for most businesses, but it’s not without snags and struggles. To create a successful sales funnel, you must identify and overcome the biggest challenges of creating and managing it. So, we’ve drafted the most common sales funnel challenges to give you a head’s up.
The 7 Biggest Sales Funnel Challenges that Businesses Face
Here are the seven biggest sales funnel challenges:
Lack Of A Well-Defined Sales Funnel
A poorly defined sales funnel can lead to missed opportunities for potential customers and revenue. If any steps in the process are missing or not clearly defined, it can result in losing customers at any stage. For instance, if a person comes across your product without a clear way to learn more, they may lose interest and move on. Similarly, if someone is interested in your product but the checkout process is too complicated, they may become frustrated and abandon the purchase.
Various factors can contribute to a lack of a well-defined sales funnel. These include a lack of resources such as time and manpower, a lack of understanding about the importance and function of a sales funnel, a disconnect between sales and marketing efforts, a failure to identify the necessary steps for a successful sale, and a lack of appropriate tools or technology. Without these, creating an effective sales funnel that leads to conversions can be challenging.
Not Enough Leads Coming in Through the Top of the Funnel
The initial phase of the marketing funnel is referred to as the “top of the funnel” and it is where potential customers become aware of a product or service. This stage is crucial as it sets the foundation for the rest of the customer’s journey.
The content during this stage should be informative and educational, yet not overly pushy in terms of sales. The objective is to spark interest and create awareness, rather than closing a sale. As soon as a potential customer is engaged and interested, you can guide them further down the funnel, where they are more likely to make a purchase.
If you are not obtaining enough sales leads, it could be due to various reasons such as:
- Insufficient lead generation efforts, including a limited marketing budget or ineffective lead generation strategies.
- Lack of top-of-the-funnel content, which means that potential customers do not have the necessary information to make a decision and move further down the funnel.
- Inefficient website design, which could mean that the website is not user-friendly or does not contain the appropriate information.
- Poor search engine optimization, makes it challenging for potential customers to find your website and also results in a low-quality score, hindering lead generation efforts.
- Not being well-versed in the use of lead generation tools and techniques can impede the ability to generate a significant number of leads.
Poor Lead Quality and Low Conversion Rates
Lead quality refers to the likelihood of a lead converting into a paying customer. Several elements influence the lead quality, such as:
- The amount of money the lead is willing to invest
- The proximity of the lead to making a purchase
- Whether or not the lead has previously been contacted by your sales team
- The level of interest the lead has demonstrated in your product or service
Poor lead quality is a prevalent issue faced by businesses today. It can consume valuable time and resources, as well as harm the reputation of the company.
Several factors contribute to poor lead quality, including incorrect contact information, duplicate entries, leads that are not yet ready to purchase, and leads that originate from untrustworthy sources.
When a sales lead does not have the essential details, it becomes challenging to classify the lead as a potential customer. For example, if a sales lead only includes an email address and no other contact information, it is considered poor lead quality.
To be considered high-quality, the sales team should have the ability to reach out to the lead and further qualify the lead.
Weak Middle-of-the-Funnel Activity that Stalls Momentum
The middle of the funnel (MOFU) is a crucial stage in the marketing funnel, where potential customers are actively evaluating your product or service.
To progress potential customers through this stage, it’s essential to provide them with relevant and specific content that will assist them in making a purchasing decision.
There are several indications that your middle-of-the-funnel strategy may not be effective, such as:
- Lack of content tailored for the middle of the funnel, which means that potential customers do not have enough information to move forward in the funnel.
- Weak or insufficient calls to action, do not encourage potential customers to move further down the funnel.
- Failure to track results makes it impossible to determine what is working and what needs improvement.
Lacking a Closed-Loop Reporting System
A closed-loop reporting system allows you to monitor the progression of your sales cycle, enabling you to understand the origin of your leads and how they are transformed into customers. A vital aspect of a successful closed-loop system is linking all your data sources to gain a comprehensive view of your funnel.
For instance, let’s say you are running a lead generation campaign on Facebook. When someone clicks on your ad and completes a form on your website, they become a lead. However, that’s only part of the story – you also need to know whether that lead eventually becomes a paying customer.
Without a closed-loop system, it is impossible to identify the source of your leads, how they are converted, and what strategies are effective (and ineffective).
Funnel Leakage Due to Ineffective Marketing Automation or CRM Systems
There are various reasons for leakage in the funnel, but some of the most frequent ones include ineffective lead capture and a lack of lead nurturing.
Ineffective lead capture: A company’s website may not be optimized for lead generation, or it may not be effectively promoted to drive traffic to it. Additionally, a poorly designed lead capture form that does not function properly or is placed in an inconvenient location on a website can also contribute to ineffective lead capture.
Lack of lead nurturing: After capturing a lead, it’s essential to nurture it until the lead is ready to make a purchase. However, if a company does not have a strong lead nurturing system, the leads will become stale and eventually be lost.
Failing to Retarget Leads that Fall Out of the Funnel
Not retargeting leads that exit the funnel is similar to leaving money on the table. If a lead has already demonstrated interest in your product or service by entering your funnel, there is a good chance that you can convince them to return and complete a purchase with a little encouragement.
Even if a lead does not convert immediately, retargeting them will keep your brand at the forefront of their mind so that when they are ready to make a purchase, you will be the first company they think of.
The 7 Overcoming Strategies
Now that we have discussed the most significant challenges, it may seem overwhelming. However, it’s time to take a deep breath and move on to the most important aspect – the seven strategies for overcoming these obstacles.
Let’s begin.
Define Your Sales Funnel and Align It with Your Business Goals
The initial step in constructing a sales funnel is to determine your target audience. This can be achieved through market research or by utilizing customer segmentation to comprehend who your ideal customer is. Once you have a clear understanding of your target market, you can begin creating content and offering products that cater to their needs.
It is also vital to align your sales funnel with your business objectives. To accomplish this, you must comprehend what you aim to achieve at each stage. For instance, if your goal is to enhance brand recognition, you will need to focus on top-of-the-funnel activities such as creating educational blog posts or hosting webinars.
If you aim to generate leads, you will need to focus on middle-of-the-funnel activities like driving targeted traffic to your website or providing valuable content that encourages people to sign up for your email list. And if your objective is to increase sales, you will need to focus on bottom-of-the-funnel activities like creating compelling offers or providing exceptional customer service.
To achieve success, it is essential to conduct thorough research and then create a detailed plan. Once you have a plan in place, you can begin implementing it and testing it to see what works best for your business.
Lead Generation Through Effective Marketing Efforts
So, how to generate more leads? Well here are three tips to help you tackle this problem:
- Increase your visibility with paid advertising
Enhance Your Visibility Through Paid Advertising
One effective strategy for generating more top-of-the-funnel leads is to increase your visibility. One of the most efficient ways to do this is through paid advertising.
When you advertise your business on platforms such as Google, Facebook, or others, you are exposing your business to individuals who may not have discovered you otherwise. While some of these individuals may already be familiar with your brand, many will not.
These individuals are likely at the top of the funnel, and by running ads, you are increasing your chances of generating leads from this group.
- Use attractive lead magnets
Another effective strategy for generating more top-of-the-funnel leads is to utilize lead magnets. A lead magnet is a way to collect email addresses by offering something of value in return. This can be a white paper, an eBook, a discount code, or any other item that would be beneficial to your target audience.
The crucial aspect is to have a lead magnet that is enticing enough for individuals to provide you with their email addresses. If it is not, you will not receive many opt-ins, and therefore, you will not generate a significant number of new leads.
- Optimize your website for SEO
Another approach to increase the number of top-of-the-funnel leads is by enhancing the search engine ranking of your website. This can be achieved by optimizing your website for search engine optimization (SEO) which involves making sure that your site appears as high as possible in the search engine results pages (SERPs) for relevant keywords.
Increase Lead Quality By Targeting The Right Audience
How can you improve poor lead quality and low conversion rates?
Conduct thorough market research: Though this may seem obvious, it is important to mention. Without understanding your target market, it will be challenging to generate high-quality leads. Take some time to research your ideal customer to identify your target market. Once you know who you are looking for, finding them will be much easier.
Invest in lead generation tools: Utilizing lead generation software can assist in automating some of the tasks related to lead generation, such as collecting contact information and sending automated emails. This can free up time to focus on other aspects of your business. Additionally, many lead generation software programs have built-in tools for evaluating lead quality, which can save time, resources, and energy in the long run.
Train your team: If you have employees responsible for lead generation, make sure they receive proper training. There are certain best practices that should be followed to generate high-quality leads. Additionally, they should be familiar with any lead generation software they have invested in. Providing adequate training will ensure that your employees can perform their tasks effectively and efficiently.
Improve Your Lead Nurturing Process
Marketing can be a challenging task. It’s important to strike a balance between not being too pushy and turning off potential customers, while also ensuring that you remain at the forefront of their minds so that they think of you when they are ready to make a purchase.
Below are some suggestions to help you enhance your lead nurturing process:
Make sure that the communication is relevant to the buyer’s journey stage. For instance, if the potential customer is at the beginning of their research, providing them with purchase-related information would be premature.
- Personalize the communication.
In addition to ensuring that the content is relevant, it’s also crucial to personalize it. Include the lead’s name in emails and tailor the content to their specific needs and interests.
- Timing is crucial.
Avoid sending too many emails, as it may turn off the leads. On the other hand, don’t space out emails too much, or the leads may forget about your business. Find the right balance for your audience and stick to a consistent schedule.
- Use a variety of mediums.
Emails are not the only means of reaching leads; consider using other channels such as social media, direct mail, or even phone calls if appropriate. Mixing up communication methods will keep things interesting and increase the chances that your message will be seen and remembered.
Align Marketing and Sales Teams
Having a strong relationship between the marketing and sales teams is crucial, as they both have a shared objective of increasing revenue.
Merging the two teams can enhance communication and cooperation, resulting in more success in generating and converting leads.
One of the main issues that can arise is a lack of communication and collaboration between the two teams. Marketing focuses on creating leads, while sales focus on converting those leads into customers.
In order to improve communication and collaboration between marketing and sales, it is essential to first clearly define the roles and responsibilities of each team. Then, set shared goals that both teams can work towards. Lastly, implement systems and procedures that facilitate the sharing of information between the two teams.
Preventing Funnel Leakage
To prevent funnel leakage, it is important to take steps to optimize your website for lead capture. This includes adding forms, landing pages, and pop-ups to gather leads from website visitors. Additionally, it is crucial to make sure that forms are short and easy to fill out to avoid potential customers moving on. Another preventative measure is conducting regular data audits to ensure all information entered into your system is accurate and complete.
Lastly, it is important to follow up with new leads promptly to avoid them forgetting about your business or choosing a competitor. This can be achieved through setting up automatic email drips or assigning someone to manually follow up with leads on a regular basis.
Retarget Leads Out Of The Funnels
If you’re searching for a way to reconnect with leads that have dropped out of your sales process, there are several techniques you can employ. One possibility is to establish a custom audience on Facebook. To do this, you’ll need to implement the Facebook pixel code on your website. Once that’s done, you can create a custom audience by selecting the option “People who visited specific pages but didn’t convert.”
Another strategy is to utilize Google AdWords remarketing, which functions in a similar way to Facebook’s custom audiences but uses cookies instead of the Facebook pixel. Additionally, you can utilize Twitter’s lead generation cards for retargeting leads that have fallen out of the funnel. These cards allow you to collect leads’ contact information directly from Twitter.
To establish a lead generation card, you’ll need to create a Twitter ad and include a call-to-action to fill out the card. Lastly, you can retarget leads with ads on LinkedIn. LinkedIn offers two ads that are well-suited for lead generation: Sponsored InMail and Sponsored Content. LinkedIn offers two ad options that are particularly effective for lead generation: Sponsored InMail and Sponsored Content. Sponsored InMail allows you to send personalized messages straight to the inbox of LinkedIn users, while Sponsored Content enables you to reach users with relevant and targeted articles and updates.
Regardless of the method you select, make sure your ads are highly relevant to the products or services your leads are interested in. By using targeted and relevant ads, you’ll be able to effectively bring leads back into your sales process.
Closing Statement
Creating an effective sales funnel is crucial for any business, but can be challenging to get right. To overcome these challenges, it’s important to understand the obstacles and use the appropriate strategies.
There are several strategies that can help business owners increase their sales through their funnel, but keep in mind that implementing them will require effort and dedication. Despite the work involved, the end result of a successful sales funnel is well worth it.