In the past we have discussed the features and benefits of a sales funnel analysis. To recap, sales funnel analysis evaluates the buyer’s journey and how he responds to each step in the sales process or sales funnel. It shows the conversion between each stage or step of the sales funnel. It determines which stages or steps convert high, and which convert low.
A more detailed analysis of the sales funnel is the sales pipeline analysis. It looks at the data and the movements of prospects at each pipeline stage. It also scrutinizes the activities of sales representatives at each step to see where they’re successful and where they’re not.
This sales pipeline analysis is conducted using key metrics and reports that you employ and monitor with the help of a CRM.
In tracking the movements of your prospects through the sales pipeline, there is also one other thing you can monitor: customer behavior, including what exactly they’re looking for, what they’re considering buying, and what they’re actually buying,
Using a CRM to Track the Buyer’s Behavior
An intelligent CRM can be your best ally in knowing more about what your customer is looking to buy.
From the first touchpoint of a potential customer, the CRM will take note of this buyer. the first touchpoint can be an inquiry submitted to your website or a simple visit to it. The CRM will then track all other interactions with this customer. This will help you cultivate a relationship with him.
A highly efficient CRM will track every activity of all your customers and prospects. It can even predict their next move.
Analyzing your customer’s journey and behavior will invariably follow these steps:
- Do segmentation. Segment your customer base using different categories like demographics (gender, age, location, etc.), engagement (site visits, social media interactions, etc.), and the like.
- Identify the customer needs of each segment. Yes, they will vary. The different segments will have different motivations for buying your product or service.
- Gather data on your customers. A CRM keeps all relevant data pertaining to all prospects or leads. Use reporting tools to view site visits from customers: what web pages they’re visiting and which content they’re consuming. Log in all calls, messages, inquiries, etc. in the customers’ profiles to build more data about them. CRM tools can also provide data on customer characteristics, purchase history (if any), and basically all kinds of engagement activity from their end. You can also use the CRM reporting tools to see which features of your product or service the prospects are looking into or responding to.
- Track the movements of these segments. Using the CRM reporting tools, monitor their movements through the sales funnel. As mentioned, a sales funnel analysis will show you if (and where) they’re continuing or dropping off in the sales process.
- Review your data. Now that you have your data and have analyzed it, where or how should you use it?
- Create targeted marketing campaigns: You can create targeted campaigns for each market/customer segment. Having these targeted campaigns before a customer has entered the sales funnel and even during his journey through the funnel can definitely improve your conversion rates. The data will also show you your most valuable segment of customers, and we recommend that you prioritize them.
- Deliver personalized customer experiences: Everything you will deliver to your customer will be customized to what he wants and needs. And every customer responds very well to personalized service.
- Boost product development: Now that you know which features “sell” more to which segment, you can further develop your portfolio of products or services based on this information.
Using your customer behavior data analysis on these three things will not only do wonders for your sales conversion rates. Customer behavior data will also help improve customer acquisition, retention, and expansion.
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