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THE FUNNEL OF SALES. How to help your business run up?
Witnin the framework of the designer’s Club we continue to publish articles about the development of business of salons and private individual curtain designers.

09.02.2015, Платные уроки
If you are seriously thinking about the development of own business, management of key indicators becomes one of important components of work. In fact, the control over them also distinguishes successfully developing business from "business on a knee", slipping on unknown reasons.

What is it? For example, in whole, such indicators as sales volume, quantity of orders and the average price of the order are important for business . It is vital to measure them and try to improve them. By the way, the most important parameters for business are the profit and profit on one employee or designer. Herewith so "big" indicator as the profit is not considered, being guided only by sales volume a month. Then they are surprised with the lack of money.

In sales, which we are speaking about, there is a very convenient concept the "funnel of sales", which allows to trace all stages of work with the client and rise the quantity of the earned money.

Idea of “sales funnel”
Key idea: your sales looks like a funnel: on the top in the wide part there is a large quantity of customer’s requests, then during the process of sales the clients go away, and the funnel is narrowed and, at last, some part of potential clients make an order, and these orders make a funnel neck.

The simplest type of a funnel: The first contact – Obtaining the offer – Payment.
At the every stage some part of clients "goes away" and the funnel becomes narrower. At the bottom of the funnel there are only those clients who have already made an order.

Everything looks simple: to earn more money, we need:
1. Provide as many first contacts with the client as possible.
2. To make so, that as much as possible clients, who addressed to you, wanted to receive an offer.
3. And at the end, that as much as possible clients, who received the offer, were delighted and made a payment.

However, you already know about it. Why do we need the funnel? The funnel allows you to define your bottlenecks or existing problems.

1. Quantity of treatment. For example, 300 persons came to the salon in month.
2. The % of clients, who ordered services of a personal designer. For example, 30 persons, that is 10%, who came to the salon and asks services of a personal designer.
3. The % who ordered services of a personal designer and made an order. For example,50% of customers who ordered services of a personal designer, made an order and made an advanced payment.

And now we can compare:
The current month: 300came, 10% - ordered services of a personal designer-, 50% - made the order -. Total: 15 orders.
Last month: 250 came, 20% ordered services of a personal designer-, 50% made the order -. Total 25 orders.

From this it is possible to see that last month there were fewer clients, but you worked with the addresses better, and as a result there were more orders. Therefore, it is necessary to improve work with the entering clients (to pay more attention, to motivate sellers, to report about actions, etc.).
Comparison of work of two designers in one salon.
In the same way we can compare work of two designers.

Funnel indicators of two designers:
Designer 1 15 - services of a personal designer/ 5 orders/ the % who made the order – 33%
Designer 2 30 - services of a personal designer/ 6 orders/ the % who made the order – 20%

One can see that efficiency of designer № 1 is higher, the second one "loses" much more clients, which other designers could "take". And if we have the same figures during a few months, this designer is less favorable for you, despite the fact that he brings more orders.

Note. When we work with funnel, we can see more so “unexpected” conclusions. But, please, pay attention, here it is important to look at figures "from above" and appreciate not only number of orders, but and profit from each designer or your real profit in a month, if you are the private designer.
Funnel for sales through salon and through Internet-promotion
- Quantity of person who came to salon or who called;
- The % who start discussion with a designer;
- The % who used services of a personal designer;
- The % who made an order

- Number of displays of banners or announcements;
- The % of people visited your website;
- The % of people leaved an application or called;
- The % ordered services of a personal designer;
- The % of people made the order
How to raise the indicators of funnel
Of course, for raising the result always there is an aim of expanding a funnel at the top level to provide the maximum number of clients, but this problem is not always a priority.

After your start to trace funnel indicators, you will see on what stages there was a strong narrowing, and where the biggest percent of clients was lost. Particularly at this stage you have to make the main efforts. For example, if you see that the greatest lost is at the stage of discussion the order before the services of a personal designer, you should improve work on identification of the needs of clients.

The most evident actions for the expansion of a funnel at each stage:
Sales funnel is rather a simple and evident instrument which helps to develop systemically your sales and raise the income.Try to estimate your parameters of funnel for the current month, and you will see, it will give a lot of food for thought. The most difficult in the funnel of sales – as usually is to find the desire and forces to make it.
Success to your business and have a good funnel of sales!

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Получайте полезные рассылки от WilliZ
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