Try The ‘Funnel Approach’ To Marketing
Planning And MarketingOne of the goals of Roach’s workshop was to demonstrate the importance of planning in business and marketing. He said that contractors need to practice “visioning” — setting a direction. “Companies need to define who they are and what they are going to be,” he said. In his own business, Roach said that he looks to increase his closing rate “in every aspect of the business.”
Roach added that businesspeople need planning because, “We spend a lot of time doing things we are not supposed to be doing. A plan puts us back on track.”
He listed these benefits of planning:
According to Roach, marketing is a “fundamental business process that is goal driven with objectives that are set during the business planning process.”
He added that it is very important to know to whom you are marketing. “It’s probably more important to know a little bit about your customer than it is to know everything about your product.”
To emphasize his point, Roach used the funnel process to give an example of how a company can grow its replacement sales by 10 percent using the following data:
Using these facts, Roach showed the funnel process:
As prospects get whittled down, the data takes the shape of a funnel. Six hundred prospects represent the “top” of the funnel and all of the factors, such as prospect-to-bid rate and closing rate, filter the 600 down to 80 sales at $2,500 per sale, which equals $200,000.
Roach said it is very important to track the numbers in the funnel process on a daily basis to ensure you are on track. And there is another reason to track the numbers: to inform employees. “We post the data everywhere, so everyone sees who is getting leads and who is closing them,” he stated.
Publication date: 05/26/2003