The SaaS sales funnel is a sales process that involves various stages, starting from building awareness of your brand in the customer’s mind and extending to the first payment.
So what if you have a fair amount of leads for your SaaS offering but can’t turn them into transactional conversions? Yes! That’s pointless in your sales process.
To generate more leads and drive them to action to increase sales, you need to improve the effectiveness of your marketing and sales funnel.
An effective funnel will allow you to spot the exact limitations of your marketing and sales process.
At the same time, it also ensures to provide the multi-dimensional, objective, and fair perspective for you in your journey to find potential customers.
This article mainly reviews and analyzes the SaaS sales funnel aspects. From there, it can help you understand more deeply the importance of doing business with this sales funnel. Let’s look forward to it!
Table of Contents
What Is The SaaS Sales Funnel?
SaaS sales funnel (dedicated conversion funnel) is a visual, accurate, and complete representation of the journey from the time a potential customer learns about your business to the moment they make a decision.
It’s a combination of marketing and sales, allowing you to chart the journey from attracting leads to successfully closing any deal.
Documenting the journey a lead takes helps your marketing and sales team identify weak points in your customer service process.
Furthermore, it also helps to emphasize the positive points for you to know and develop further. You can think of the SaaS sales funnel as an inverted pyramid.
On it, fully show the conversion rate between each customer stage. When they stop traveling, the pyramid or funnel will shrink on its own.
Through this particular sales funnel model, you can completely control all aspects of your own business. However, to do that, you need to accumulate enough basic and advanced knowledge about SAAS.
Suppose you are wondering about choosing and finding information for your research. Don’t worry too much, because the sections below are for you.
All these shares are created with the desire to help you have an overview and accurate view of the sales funnel on SAAS.
Why Is The Sales Funnel Important For SaaS Business?
Focusing on attracting customers through short-term promotions, as today’s e-commerce businesses aim, can be effective.
Generally, they can’t last too long. Because the appearance of many such programs will make some businesses become blurred in the eyes of consumers.
Meanwhile, with SaaS, it’s completely different. SaaS’s customer acquisition process requires a more subtle approach.
Customers need to be sure that the product you offer is the perfect solution to their problem. This can help your business have many loyal customers.
To effectively implement this approach, the presence of a sales funnel is indispensable. All in all, you still need sales to funnel for your SaaS business to function effectively. Some reasons for the role of the sales funnel are as follows:
- Reach customers: The sales funnel is a combination of marketing and sales. Of course, when you want to reach your right audience, you’ll need a sales funnel. Conversely, without the support of a sales funnel, you will not be able to deliver the desired results for your business process.
- Evaluating effectiveness: The sales funnel is also a tool to help you assess what works and what doesn’t. From there, help you quickly satisfy all requests from customers.
SaaS Sales Funnel Stages
The sales funnel stages can be different for businesses that use different terminology and structures.
However, they will consist of three parts: The funnel beginning, the middle of the funnel, and the end of the track.
What are the details of each funnel? Stay tuned for more information below!
Top of the funnel: Perception
At this stage, your potential customers may be searching and asking questions about product/service information from your business.
In other words, at this point, they are looking for more specific information about your business.
About marketing, this can be considered a golden period to drive traffic to your website or blog and position yourself as an expert in the field.
At that point, you need to respond to your customers while enhancing your education to make them your source of authority for your next guests.
Thus, it will help your funnel have outstanding prestige and high quality.
However, to capture the attention of your first potential customers, you need to put all your efforts into increasing brand awareness. Here are some ways you can refer to:
- Promote your content, products/services through paid add-on services.
- Enhance the implementation of Pr activities into your strategy to reach more customers.
- Improve SEO efficiency to increase traffic to your website.
During this stage, potential customers will begin to ask questions about the product/service provider.
Most of the guests at this point are somewhat confident of their choice of the preferred company.
Of course, your marketing activities need to give accurate answers and solve all customer problems.
Only then will you give your potential customers the trust and soon make the final choice decision. The solutions you provide can be presentations, videos, or case studies.
Your sales team is the key to bridging the gap between awareness and decision-making in the middle of the funnel.
Here, sales representatives will talk directly with potential customers and make optimal offers to see if it is suitable for the sales team’s problem or not.
In other words, in this stage, you will mainly consolidate the answers and answers so that they are most practical and effective compared to the wishes of the customer.
Of course, when customers receive satisfactory answers, they inevitably make a purchase decision.
End of funnel: Action
When your customers make the final purchase decision and help you increase sales quickly if you do well in the previous stages, selling is essential to your business, retaining customers is something you need to pay more attention to.
SaaS companies are subscription-based, so a guaranteed monthly income is paramount. Making a profit at any given time will not make companies grow.
It may even cause them to falter. We need an urgent strategy to attract and retain customers. They are a virtual object for the long-term development policy of the business.
Here are a few things you can implement to retain customers for your business. Specifically:
- Incentivize users with special promotions
- Provide in-depth information about products/services to loyal customers
- Suggestions for customers who become members to participate in a free trial of new products
- Send customer satisfaction surveys to know what they have been thinking about the quality of your products/services.
How Do I Create A Sales Funnel For SaaS?
We’ll show you how to create the best SaaS sales funnels. Please scroll gently so as not to miss important information!
1. Identify your dream customers
First, you need to define your dream customer to choose the right product clearly. Too often assume that putting any great product in public can make customers happy and driven towards it.
However, this assumption is entirely wrong. Remember, a product for everyone is a product for no one.
That is, in short, your product will not be specific to any audience. It does not bring long-term efficiency to your marketing team.
You should focus only on products that your dream customers can easily access. Only then can you successfully convert that customer into revenue with a marketing funnel.
2. Capture attention
Your efforts will be meaningless if you do not know how to attract customers.
It would help if you had the support of advertising services to let more customers know about your business and products.
Besides, you also need to pay attention to creating engaging, SEO-friendly content and regularly updating it on your platform.
This action will help customers have a different view of your brand. Building brand awareness is not a straightforward story, and it requires both time and money. But, once you have succeeded with it, the benefits will come to you soon.
3. Build lead generation campaign
Building a lead generation campaign is required to grow your SaaS business funnel. So how can you generate a sales-qualified lead?
Our two ways to do this will help you better understand this.
- Generate inbound leads
This approach allows potential customers to contact you first. They are the people who can fill out forms on your website or call or email you.
To successfully generate inbound leads, you’ll need carefully crafted content, compelling advertising campaigns, webinars, referral programs, or SEO.
- Generating foreign leads
This helps you reach potential customers by phone, email, online mail, events, or account marketing. Generating foreign leads is a valuable practice to build an external target audience. However, it is much more expensive than the previous method.
4. Run email follow-up campaign
You can care for and nurture your marketing qualified lead through email tracking campaigns. So how often is enough for customers to feel your love?
About 1-2 emails per week are enough. Note, do not send too many emails to them in a short time because that may disturb the customer’s mood, emotions, or marketing strategy.
Besides frequency, the quality of email content is also something you need to pay special attention to.
The emails you send need to be informative, building a connection between your potential customers and your business.
Using unattractive content can turn customers away from you. By creating quality information, you can include insightful offers and get them to agree to choose.
5. Fill Your funnel by advertising.
It would be remiss if you did not promote your funnel. It is difficult and seemingly impossible for customers to find you naturally among so many different business funnels.
If so, that process takes a long time. By using unique advertising campaigns, you will be able to attract the attention of a large number of potential customers.
However, be careful with your content. Everything needs to be adjusted, intending to target potential customers. Only then is your ad successful.
Along with that, you also need to take care of your advertising policy. The selected product, article content, product/service need to be suitable for the previously defined customer audience.
It dramatically helps your revenue increase ad performance. If the product is not appropriate or is not carefully assessed, it is useless to run ads.
As we mentioned earlier, customer retention is the most important thing for your business both now and in the future. So give them special care to make them happy and continue to support you.
To do this well, you need to carefully learn what customers like to develop your product model accordingly. And of course, it’s good to spot things customers don’t like so you can stay away from them.
7. Track and optimize sales funnel
Finally, don’t forget to track and optimize your sales funnel. This step is the key to the success of your upcoming campaigns.
For example, if you attract many potential customers, but in the end, they don’t buy your product.
That means you are not on the right track in building your own SaaS. And of course, to improve, you need more perfect policies.
In case your customer reached the free version but didn’t convert after trying the product, then maybe your intro is not up to the mark, and you need to tweak it to get the desired effect.
On the contrary, if your customers give up as soon as they sign up, the content you bring does not create real value for the product or is not suitable for potential customers.
To optimize the SaaS sales funnel, you need:
- Generate qualified leads
- Clearly show the value to be conveyed
- Create many attractive ads
- Prioritize quality content directed to potential customers
- Improve your landing page experience and test usability.
Watch the video below to see how to improve your funnel no matter how bad it is.
Sales Funnel For SaaS Examples
To help you better visualize the SaaS sales funnel. Note that you should not copy the ideas below unless perfect for your sales process.
All of these sales funnels are designed to be the starting point for those who want to grow their sales funnel:
- Landing page – where potential customers can see after clicking
- Ad confirmation page – confirm the offer, trial, or purchase
- Upsell page – where potential customers can reach for additional services
- Check out page – where potential customers can make payments easily
- Congratulations or thank you page – where you can sign the leads with the next steps.
SaaS Sales Funnels Metrics
Do you have a firm grasp of SaaS sales funnel relevancy? If not, the information below is for you. These include the following SaaS sales funnel metrics:
- LTT (Lead to Trial Conversion): This metric represents the number of marketing qualified leads that are to trial.
- DCR (Conversion Rate): It represents the number of demos that successfully convert to the next stage in the sales process.
- TTS (Trial-to-Sell Conversion): It helps to show how many free trial leads are into paid customers.
- LTV (Customer Lifetime Value): This metric represents the average total value a customer will spend before leaving the service.
- Churn (Number of customers leaving): This metric does not mean bad in your sales process. If your going customers fit your ICP (Ideal Customer Profile), your funnel is problematic and worrisome. On the contrary, if they are not suitable for ICP, you can rest assured about the operation of the track.
- MRR (Recurring Revenue): Recurring Revenue gives you an overview of your funnel’s performance and profitability over the past month.
- Sales Cycle (Time from initial contact to order fulfillment): It plays a vital role in reflecting order fulfillment and value creation.
- CAC (Customer Conversion Cost): You will be charged a conversion fee.
- Churn (Negative churn): It is an indicator of the strong growth of the business. It shows that the monthly recurring revenue from upselling and cross-selling existing customers eliminates the lost revenue when customers leave.
With the above how to build a saas sales funnel information, I hope to help you understand this potential sale funnel more deeply. Combining the sales funnel with the SaaS marketing funnel is an effective solution for your business.
By recording the customer’s purchase journey, SaaS brings high-profit value to users. Check out this article, and don’t forget to leave feedback!
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