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Building Your Sales Funnel Based on Interviews

· 2 min read
Max Kaido
Max Kaido
Architect

Objective​

To design a sales funnel for your product (or product-avatar) based on interview insights. The funnel will include typical stages, conversion rates, time between stages, and probabilities of closing deals. This exercise will also help identify ways to optimize and grow sales.

Steps to Complete the Task​

1. Define the Sales Funnel Stages​

Use the following rules for clear and actionable stage definitions:

  • Write stages in the past tense (e.g., "demo completed," "contract signed").
  • Each stage should naturally lead to the next.
  • Include "unsuccessful" stages like "contact rejected" with actionable next steps (e.g., "follow up in 3 days").

Example Stages for a SaaS Tool:

  1. Initial contact established (lead reached out or sales contacted them). Next step: Schedule a call or demo.
  2. Demo completed (product features demonstrated to the lead). Next step: Send a proposal.
  3. Proposal sent (pricing and details shared). Next step: Follow up for feedback.
  4. Negotiation completed (lead provides objections or clarifications). Next step: Close the deal.
  5. Deal closed successfully (contract signed and payment received). Next step: Onboarding and upselling.
  6. Deal lost (lead rejected or dropped out). Next step: Plan a re-engagement strategy.

2. Define Funnel Metrics​

Use your interview findings or make educated guesses for:

  • Conversion rates between stages (e.g., 50% from demo to proposal).
  • Time between stages (e.g., 3 days between contact and demo).
  • Probability of closing at each stage (e.g., 20% after the proposal stage).
  • Stage-specific numbers (e.g., 100 leads contacted → 50 demos completed).

Example for SaaS:

  • Initial contacts: 100
  • Demo completed: 60 (60% conversion, average time: 5 days)
  • Proposal sent: 40 (67% conversion, average time: 3 days)
  • Deals closed: 20 (50% conversion, average time: 7 days)
  • Deal lost: 20

3. Hypotheses for Doubling Sales or Starting from Scratch​

After building your funnel, brainstorm ways to improve sales. Focus on:

  • Shortening the sales cycle: Reduce delays between stages.
  • Increasing lead volume: Generate more initial contacts.
  • Improving conversion rates: Identify friction points and remove them.
  • Raising average deal value: Offer premium tiers or upsells.
  • Encouraging repeat purchases: Build relationships for future sales.

Example Top 3 Hypotheses:

  1. Automate follow-ups to reduce delays between demo and proposal stages.
  2. Use targeted ads to double initial contact volume.
  3. Offer discounts for faster decisions to improve the proposal-to-close rate.

Deliverables​

  1. Sales Funnel Definition

    • Include stages, metrics, and probabilities in a structured format (Google Doc or spreadsheet).
    • Share the link to your file.

  2. Top 3 Growth Hypotheses

    • Provide a short list of actionable ideas to improve or start sales.

Let me know if you'd like a template for your funnel or examples from specific industries!