B2B SaaS Sales funnel. The term evokes images of creepy carnival games, or perhaps something you find on the bottom of your shoe after walking through a muddy field. Given its less-than-ideal image, most marketers avoid using the term (or at least, don’t use it in front of clients). SaaS sales funnel is a useful framework for understanding how leads move through different stages of the buying process and identifying opportunities for improvement.
B2B SaaS Sales funnel
It is not a game but an effective way to understand what happens when someone decides to buy your product. If you are selling SaaS, you need to know everything there is to know about the B2B SaaS Sales Funnel because it directly impacts your bottom line. If you keep reading, you will discover exactly what it is, why it’s important and how to optimize it.
|The B2B SaaS Sales Funnel|
What is a B2B SaaS Sales Funnel?
A sales funnel is a marketing model that describes a sequence of steps that leads go through from the moment they first become aware of your product or service to when they purchase it. The funnel metaphor describes the increasing levels of commitment customers make as they move through the process, from the broad awareness of your product, to research and consideration, to a final purchase commitment. Sales funnels are used in both B2C and B2B sales.
But there are some important differences in how they work. The main one is that B2B customers usually have to go through a purchasing process that may include multiple stakeholders. This means B2B sales funnels tend to be longer and more complex than B2C sales funnels.
Why is a SaaS sales funnel important?
Understanding your funnel is critical because it reveals the sub-optimal parts of your sales process. It allows you to track the number of leads you are acquiring, and gauge the length of time it takes prospects to go from initial lead to paying customer. This data can help you understand which parts of the funnel are leaking, and help you make changes to plug the holes.
A funnel is also a great visual for your sales team to see where customers are in the sales process. It allows you to hold team members accountable for the number of leads they are responsible for acquiring, and the length of time it takes for them to go from initial lead to paying customer.
Defining the B2B SaaS Sales Funnel
Let’s go back to the sales funnel and break it down. A sales funnel has three parts: Lead Generation, Lead Qualification, and Lead Conversion.
1- Lead generation: This is the process that gets potential customers in the door. Your funnel starts here. Lead generation can happen through a variety of ways, including paid advertising, content marketing, and referral programs.
2- Lead qualification: Once you have a lead, you need to figure out if they are a good fit. You may discover a lead is not actually interested in your product or the problem you are trying to solve. You may also realize they are too early in the buying process to make a purchasing decision. This is when you need to qualify the lead. This can happen through lead scoring, where you assign a value to the lead, or through inbound lead qualification.
Lead to Customer Conversion
This is the process of taking qualified leads and turning them into paying customers. Here, you will present different offers to the leads in your sales funnel. You might choose to offer a free trial, a premium product, a hosted solution, or a combination of these. You may find that some leads are ready to sign a contract right away.
Others may need more time to evaluate your product. This is where the sales process begins. At this stage, you need to make sure you have a sales process in place to support all the ways your funnel is converting leads. This may include a salesperson, a sales rep, or a combination of both.
Each one of these people needs to have a script that they are following to guarantee they are qualifying the lead correctly, and presenting the value of your solution.
Optimizing your B2B SaaS sales funnel
Once you have identified the weakest parts of your sales funnel, you can plug the holes, and start to see the impact in your sales numbers. The best way to optimize your sales funnel is to take a step back, look at the big picture, and see where you can make changes. You can do this on your own, or hire an outside sales consultant who specializes in sales funnels. Here are a couple of things you can do to optimize your sales funnel:
1) Create clear and concise product descriptions.
2) Draft effective customer testimonials.
3) Design attractive web pages and user interfaces.
4) Develop targeted email campaigns.
5) Track daily leads and conversions.
To Sum Up
The B2B SaaS sales funnel is a useful framework for understanding how leads move through different stages of the buying process and identifying opportunities for improvement. It is not a game but an effective way to understand what happens when someone decides to buy your product. With the right funnel in place, you can track the number of leads you are acquiring, and gauge the length of time it takes prospects to go from initial lead to paying customer.
You can also use it to hold team members accountable for the number of leads they are responsible for acquiring, and the length of time it takes for them to go from initial lead to paying customer.