Predicting Revenue with the Four Funnels Framework

The Four Funnels Framework is a systematic methodology for generating high-quality B2B leads that deliver predictable revenue. This framework helps to overcome the “missing link” that sometimes develops between a company’s marketing and sales functions. Businesses can bridge this gap by implementing the following four funnels.

SOMAmetrics Four Funnels Framework

 

Funnel 1: Build Awareness

In order to sell to buyers, companies must first build awareness with their target market. The constant noise and crowding of increased market flooding creates buyers who are habituated to tuning out. Due to this, it takes nearly 16 distinct touches to sway prospective buyers to purchase; and this number only continues to rise.

Regardless of this tune out, businesses must still sell. To do so, they must first generate attention from prospective buyers. Buyers cannot purchase what they do not know exists. The most effective way to generate attention is by generating and publishing genuine marketing content. B2B sellers need to display knowledge of the pains and problems faced by their targeted buyers. Only when buyers feel that sellers understand their troubles will they consider entering into a purchasing transaction.

The goal of Funnel 1 is to drive a high number of the target buyers to where they can find out more and deepen the engagement with the seller.

Funnel 2: Build Trust

B2B buyers have little to no care about sellers’ particular products and services. Their primary concern is how to identify and address the problems they face in their companies and industries. To capture potential clients, B2B sellers must demonstrate care and understanding by freely providing the information required by prospects to solve their concerns and complications.

While such actions may appear to be giving away something for little to no return, providing this information establishes trust in the vendor. Trust generates quality leads that are more likely to transition into loyal clients.

The goal of the second funnel in the Four Funnels Framework is to feed the pipeline for Funnel 3—where Business Development Reps (BDRs) call those that have shown marketing engagement, qualify these, and pass on to Sales.

Funnel 3: Qualify

Until this point, seller engagement with buyers has primarily occurred electronically through the sellers’ websites, social media, and email campaigns. Now that contact information has been exchanged, it is time to qualify the potential buyer to determine if they are ready for engagement with Sales.

The object of this third funnel is to create a sales pipeline for the fourth funnel. In order to achieve this, sellers must ensure that the first point of in-person contact is done a professional, senior-level staff.

Many sellers have the mistaken notion that this is “telemarketing” and believe this is an entry-level job. Nothing can be further from the truth.

The task here is to interrupt a busy senior level buyer and in a matter of 20 seconds intrigue her enough to agree to a longer call or meeting at a later time. Most of the time, this requires not only knowledge of the subject matter and industry of the prospective buyer, but also an ability to know when to push and not, when to chat and when to get down to the point, all in a matter of seconds and over the phone. This is a task for an experienced Business Development Rep (BDR).

If the buyer agrees to talk for a bit, the BDR’s job is to make sure this buyer is qualified and then set an appointment with a sales rep as soon as possible.

A predictable revenue stream depends on two qualities of the Sales Pipeline:

  1. High Quality leads that close at a higher rate and close faster
  2. Sufficient number of HQLs to meet the company’s new revenue targets

Funnel 3 is responsible for achieving these objectives.

Funnel 4: Engage

With BDRs focusing on keeping the sales team’s pipeline full, sales reps can now focus on their primary role— deeply understanding the buyer’s world and building a partnership in solving the buyer’s issues, leading towards a successful close of the opportunity.

This is the primary function of salespeople—to work closely with motivated potential buyers and place their full attention on solving the issues of the buyer. Holding them responsible for both Funnels 3 and 4, while it may seem reasonable, is actually counterproductive.

In fact, a survey of sales professionals by Sales Insights showed that they spend over 26% of their time on average trying to generate a qualified lead. This is clearly a demanding task and takes a great deal of time away from a sales rep primary role.

Once a healthy sales pipeline and a quality sales lead has been established, the sales team can focus on continuing to qualify prospects while integrating them into the buying cycle.

The Four Funnels Framework provides a methodology for consistently achieving predictable revenues by generating High Quality Leads through a process that integrates marketing, prospecting, and sales. This integration removes duplication and waste, significantly lowering the total cost new customer acquisition.

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