(5 min read)
The importance of a leak-free and high-throughput sales funnel
What is your company’s competitive edge? In today’s world full of highly scalable products and services and its dense and competitive markets, it’s often not your product or service, but your way of interacting with customers that sets you apart from the rest. In particular, your sales and marketing efforts are the deciding factor in how many customers you acquire and your service determines how many of them you retain over time.
Selling in this scalable world with decreasing costs of each additional unit, is a tricky business. Bigger companies have a tremendous cost advantage. Digital technology has heralded an age of hyper-competition where companies can scale faster and bigger than ever before and everything is copy-able. There are a lot of companies offering the same thing and that is the new normal. The big players hold much of the market share so fighting for the spotlight is difficult. The more players there are, the more choice there is. With more choice, comes more attractive deals, such as lower switching cost for consumers to be tempted by. It’s never been easier to shop around and switch providers for the best deal. As a result, the typical consumer is now less loyal and more likely to switch brands without hesitation if they get a better offer elsewhere.
This is bad news for the older companies that rely on customer retention. But, it’s also bad for all companies that care about their growth and keeping up with the competitive market. It’s necessary (and trendy) to be scalable and in a scalable, digital world, you either grow fast or die. Why? Because if not, you run the risk getting lost in the crowded market.
So, how do you secure long term success with less loyal customers, more competition and fewer opportunities to create something that hasn’t already been done?
Either, your product or service needs to be so innovative that customers are drawn to it and become loyal purely thanks to it being so good.
Or, since that’s a rarity in today’s world, you need to have a very efficient growth engine.
Keep up with the busy digital market by turbocharging your entire sales and marketing funnel. Adapt to the scalable world and sculpt your growth engine so that your Customer Acquisition Costs (CAC) are lower. This will be your weapon against the declining Customer Lifetime Value (CLV) of today’s market, that is fueled by the increasing churn rates and high competitive pressure.
How do you lower your company’s CAC?
By streamlining all customer acquisition efforts to make your sales funnel leak-free and shallower, and reducing the cost of lead acquisition.
Here are 2 effective ways to do so:
1. Deploy assets that lower your cost per lead: A typical way is to build assets that spread virally without your company needing to pay for it. The objective is to drive inbound sales. These assets can be helpful tools that bring your name out and build the association of your firm with a relevant topic (e.g., Adobe’s free pdf reader) or content such as blogs, videos or podcasts. These marketing methods can be powerful in reducing the lead acquisition cost. By creating content that speaks to your potential customers using your own marketing methods you’re saving money by avoiding pricey marketing tools that are popular with other companies looking to stand out from the crowd.
2. Shorten and optimize sales cycle: ensure each sales representative spends as little time as possible with each customer. In today’s scalable world, the phrase time is money has never been more relevant. It’s crucial that you are highly effective lower down in the sales funnel - where your leads convert into paying customers. Make the most out of every sales call by nailing every phrase and making the best impression that you can. This part of the sales funnel is vital to your success, and losing a lead at this stage is costly, considering the marketing investments made higher up in the funnel. Focus on building trust and answering questions succinctly and swiftly. Most importantly, never miss an opportunity to close a deal! Your calls are crucial for your conversion rates and sales cycle.
In today’s scalable world, the harsh and competitive conditions can be easily navigated with the right strategy in mind and a handy tech tool as an added bonus. Techonology is a surefire way to adapt to today’s digital world and ensure sales funnel success. Invest in tech that helps you to become more efficient with your growth and optimize your customer acquisition process, lowering your CAC. i2x is perfect for this. Our conversation training tool uses intelligent audio analysis to give you real-time and company-specific training in every sales call, giving you the competitive edge that you need.