“Do you want fries with that?”

It may not be the best line you hear every time you visit a fast-food joint, but it’s certainly the most effective one.

Because every time you hear this and say yes, you’re adding 15-40% to their annual revenue. 

But wait, what’s happening here?

It’s cross-selling, my friend. 

You may have wanted only the burger but ended up buying fries and a drink too. You’re cross-sold. 

And you’ve seen the benefit. Cross-selling increases the average order value. 

If you’re in an e-commerce business or any business that sells, you’re at the right place. Because in this article, we’re going to discuss proven cross-selling strategies to increase your sales. 

Quick links:
What is cross-selling?
Cross-selling vs. Upselling
Benefits of cross-selling
Potential drawbacks of cross-selling
5 Steps to build your cross-selling strategy

What is cross-selling?

By definition, cross-selling is selling a different product or service to an existing customer. That is, you recommend products or services to your existing customers that will complement or expand the products or services they already have.

Look at the travel industry, for instance. The travel company may sell you a flight ticket from Boulder to Chicago – that’s the original sale. Cross-sell occurs when they sell you a vehicle rental for when you land, a room in a hotel to stay in, and a guided tour of a nearby city.

None of these things are required for the first sale – the plane ticket – nor do they improve the service provided with the flight. You could quite happily take the flight and find your own vehicle to hire, a hotel room, and so on. But in this case, the cross-sell is all about convenience.

Let’s look at some more examples.

Cross-selling examples

Cross-selling techniques can be applied to almost all products across all industries. For example,

You have bought auto insurance from a firm that provides more insurance services. Most probably, you’ll be pitched health and term insurance too. That’s an example of cross-selling in insurance.

Now let’s see how cross-selling happens in financial services. When you open a bank account, you may be asked to open a Demat or Trading account as well.

We’ve already seen an example of cross-selling in the travel sector. Along the same lines, the hospitality sector cross-sells tours and experiences to its customers.

If you think cross-selling requires a salesperson to influence you, you’re wrong. For instance, e-commerce. You must have come across the “customers also bought” section when you shop on Amazon. That’s their subtle way of cross-selling.


We’ve talked a bit about the topic. But, there’s one more term people use together with cross-selling. That’s upselling. However, the two are very different. Let’s look at it closely.

The difference between cross-selling and upselling

Byheart this:

  • Cross-selling is selling additional (or non-related) products. E.g., selling fries with a burger
  • Upselling is selling the improved (or higher) version of the same product. E.g., selling extra cheese with a burger

Cross-selling and upselling bring different impact to the business. And that’s why they should be used strategically. Below are some more differences you’ll note—from business strategy point of view.

PurposeAdd to the original offerImprove the original offer
PricingCan be independent of the price of the original productThe most desirable price-point is less than half the cost of the original product or service
Buying cycleCan be the entirely new saleIt’s not the new sale. Point of sale is the best time to introduce add-ons.
DrawbacksToo many choices can overwhelm the buyerCustomers may not be willing to upgrade if their purpose is served by the cheaper or lower-tier alternative
Suitable forB2C, e-commerce, but rarely B2BB2C and even B2B

Benefits of cross-selling

Needless to say, the more products you sell, the more profits you add to your wallet. Here are some more benefits of cross-selling.

  • Increase your average order value
  • Introduce customers to new products and increase the market for those products
  • Increase your profit margins
  • Give visibility to not-so-popular or slow-moving products
  • Indirectly, increase retention, as your customers can find more products of their choice with your brand.

While discussing the benefits of cross-selling, it would be unjust if we don’t highlight the potential disadvantages of it. Let’s look at them.

Disadvantages of cross-selling and remedy

According to HBR, Cross-selling is profitable in the aggregate. But one in five cross-buying customers is unprofitable—and together this group accounts for 70% of a company’s “customer loss.”

Anything and everything that’s unregulated can cause more harm than good. But it’s important to know the root cause and remedy that. Here, we’ll look at the reasons or circumstances when cross-selling can be disastrous for your business.

  • Too many choices can overwhelm the buyer. It may even lead to the buyer not purchasing at all. Such instances happen generally when customers are given choices unrelated to what they intend to buy in the first place.
  • Sometimes, it is difficult to convince buyers to add another high-dollar purchase to the existing sale. It generally happens when the customer is new or isn’t satisfied with their past purchases with your brand.
  • The original product may look inferior to other products you intend to suggest.
  • The chances of rejections are more when cross-selling face-to-face. Without great incentives, salespeople are less likely to try cross-selling.
  • Being pushy can turn off customers.

As a preventive measure, sales training for cross-selling is essential. Along with this, brands can employ incentive schemes like SPIFF to motivate account managers to cross-sell to their clients. Some brands use tools like opportunity management CRM to identify cross-sell opportunities from existing clients and pitch them when the time is right.

Opportunity Management Software - Workflows

5 Steps to build your cross-selling strategy

Your cross-selling strategy should cover:

  • Understanding your customers and their needs
  • Developing cross-selling techniques
  • Identifying opportunities
  • Figuring out the right time to cross-sell
  • Tracking metrics and analyzing results

1. Understand your customers and their needs

When you know your customers well, you can suggest products they might need.

When you start preparing your cross-selling strategy,

  • Identify the most profitable customer segments.
  • Understand how your customers’ behaviors and preferences have changed over time
  • Know the products and channels they use. Fetch the channel-wise sales data as well (you can use sales CRM software for this)
  • Segment your customers basis demographic and socio-economic information.

2. Develop cross-selling techniques

If you want to make your cross-selling strategy easily adaptable, follow these rules:

  1. Your cross-sale product should complement the original item
  2. It is less expensive than the original product
  3. It should be a no-brainer. That is, you shouldn’t have to explain the product.

Note, cross-selling applies to both—online and in-person sales.

Here are some tried and tested cross-selling techniques from leading brands.

#1 Product recommendations based on past purchases

This is probably one of the most common and easiest ways to send purchase recommendations to your customers. Take note of how their purchase history has been, what their interests are, or even where they spend the most money. Using this information, you can send product recommendations.

Amazon does an amazing job of this. They send emails, app notifications and even in-app product listings similar to what you have purchased before.


#2 Offer discounts and free-shipping

Ah, the trick that I, and many more, fall prey to. When you see those posters or ads that say buy 3 for $199, you convince yourself, you need 3 shirts when all you needed was one. This one has high success rates where people tend to buy more products than they wanted to.

Another way this is done is through shipping charges. You place a bar on free-shipping. That is, orders above $X qualify for free-shipping. People tend to add more items to their carts just to escape shipping charges.


#3 Cross-sell based on similar interests

There is this very clever line that many businesses use: “Other users also bought…”. This creates a very natural human curiosity as to what other people are buying and you may very well end up buying some more.


#4 Force sell something

Not recommended for every product, but still, you can try this for products or services of lower ticket size.

Here’s an example of redBus. There are two ways that they cross-sell. When you book a bus, they ask you to insure your journey. Most people automatically click on this option. So, there, they’ve sold insurance along with their service.


Also, once you book tickets, RedBus sends you a selection of hotels at your destination to choose from. Since, in all likelihood, you would need accommodation in the place you are visiting, you would look at their options. See what they did there? Fool-proof cross-selling!

#5 Bundle products

If someone buys just one part of a package, you can try and convince them or incentivize them to buy the whole package together. You can propose options like “Shop the look” if you’re an apparel brand. Or you can offer packages at a cost slightly lower than the cost of all individual items.


#6 Offer loyalty rewards

A very common way to do this is through adding points or e-cash into their ‘wallets’. A lot of businesses follow this pattern, the most popular of which is provided by airlines, where you can accumulate flyer ‘miles’ that you can use later to earn free flights. This encourages your customer to keep flying with your airline to earn that free flight!

Even better, by putting an expiry date on these loyalty points, you can urge your customer to make purchases quicker. Like the way, Bewakoof is doing in the example below.


#7 Cross-sell supplementary services

When you purchase products that require constant maintenance like electronics or vehicles, you can sell them a discount on their yearly check. This will allow the customer to come back to you if something goes wrong instead of trying to get it fixed for cheap.

As long as you have more than one product to offer, there’s no reason why cross-selling strategies won’t work for you.

In the finance industry, if you provide loans or mortgages, make sure to offer the inclusion of life or buildings insurance – or both!

In the healthcare industry, why not offer a physical exam as an add-on to other services? Take it further and you can cross-sell spa days and massages too.

With a little creativity, you should be able to easily identify potential cross-selling opportunities. The next section gives you some ideas on identifying cross-selling opportunities.

3. Identify opportunities

You’ll know there’s an opportunity to cross-sell when:

  1. A customer indicates an interest in your products
  2. When you know there’s a need

For 1, you can track your customers’ interactions with your brand assets like ads, social media posts, website visits, inbound inquiries through chats, phone calls, etc. All you need to have is an efficient lead tracking system that keeps an eye on your customers’ activities. You can also use lead management software, for that matter.

I’ll tell you another way to identify cross-sell opportunities. If you use a CRM software, you must be capturing customer data. Now, use data filter option in your CRM to identify clients with cross-sell or bundling opportunities. You already know which products can be bundled together for maximum closure chances – you or your agents can create these lists and send them to the dialer for quick calls.

Insurance Cross-sell Engine - product bundling

For 2, keeping in touch with customers and sharing regular product updates with them could help.

At times, clients do not have a strategy. But since we’ve been in the industry for a long time, we know the ins and outs, and using this experience, we help them build a strategy and not just sell a product.”

Arbaz Jawed, Manager – Inside Sales, LeadSquared

4. Figure out the right time to cross-sell

Timing is important when it comes to cross-selling.

For some queries such as “work from home look,” showing all products—from jewelry to shoes—in the very beginning makes sense.

However, for specific queries such as “engagement rings,” you can cross-sell only in the advanced stages of the buyer’s journey.

One common technique brands use is remarketing. You track your customers’ online behavior and show relevant ads to them (behavioral targeting). The downside of this technique is that many people think it is obtrusive. Especially when you bombard users with ads when they’re just in the exploration phase. It does nothing but builds a negative perception of your brand.


So, to answer your question – when the best time is to cross-sell, sell when it makes sense. Also, do not wait for implementing a process or tool before you start cross-selling. Just get started; apply a test-and-learn approach. Prepare a list of dos and don’ts according to your clientele.

5. Track metrics and analyze results

Opportunity Management CRMs are designed to track up-sell and cross-sell numbers. However, even if you don’t have the tool, you should be able to understand whether your cross-selling efforts are paying off or not. You can get an idea through the following metrics:

  • Increase in average sales volume per customer.
  • Increase in CLV

Tracking and analyzing cross-sales will help you forecast sales and growth.

Complete performance Reports - insurance cross-sales solution

In conclusion

Cross-selling benefits both—customers and your brand. The benefits for the customer are partially the provision of these extra services (which give benefits in and of themselves) as well as being able to obtain products and services from their trusted and preferred supplier – that’s you.

They will be happy that you can provide a complete solution for them, and whether they take the option of the cross-sold package every time is not as important as knowing it exists. Their trust in you will increase leading them to become happier customers overall.

For businesses, the increase in customer trust is a clear benefit, but the major reason for cross-selling is to increase your bottom line. Once a customer has decided to purchase from you, getting them to buy extras or purchase for a second time is much easier than finding a new customer.

This also means that the more a customer buys from you, the more likely they are to want to buy more from you now and in the future. This brings a greater number of sales, and therefore a greater profit, all without the monetary and time costs associated with attracting new customers.

If you are looking for a tool that can help you implement your cross-selling strategies, then look no further. LeadSquared comes with detailed customer tracking and smart notifications. Give it a quick try, why don’t you?


What is cross-selling in sales?

Cross-selling is a way of selling related, supplementary products or services based on the customer’s interest or past purchase. It helps in increasing the CLV (customer lifetime value) and increase business revenues.

What are cross-selling and upselling?

Upselling involves encouraging customers to purchase a comparable higher-end product. While cross-selling invites customers to buy related or complementary items.

What are the benefits of cross-selling?

The visible benefits of cross-selling include an increase in the average cart value. Other than this, cross-selling can improve customer retention and increase CLV as customers get what they need from their favorite brand.

Any successful business out there has a good sales management system in place. This is a crucial element in any organization and everything needs to function properly.

A sales manager is caught between the client and the salespeople: he needs to make sure the team makes a good profit, while the customer is happy at the same time.


What is Offline Sales Management?

A simple definition of sales management would be the process of creating and coordinating the sales team in order to achieve the sales targets of the company. This will be achieved through a variety of sales strategies and techniques.

So no matter the size of your business or the industry you are in, you should definitely have a good sales manager and a solid strategy in place. A sales management plan can make the difference between a business that is barely surviving or one that is thriving. It should create a strong bond between you (the sales manager), your team, your own manager and the client.

Thanks to the advances in technology, the sales process is so much easier today than it was 10 or 20 years ago. A CRM platform can do wonders for the sales team, but what about the field team management?

If the salesperson physically goes from door to door, then he is part of the field sales team, also known as the field force. They are working really hard as well, traveling a lot no matter the weather conditions. So they too deserve their work to be made easier by a software solution. Doing everything manually can result in a lot of confusion and missed meetings with potential clients.

And this is where a field sales app like LeadSquared comes in very handy.

Features an Offline Sales Tool Should Have


If you decide to invest the company’s money into an offline sales tool, then you need to make sure that it’s a great one that is worth the investment. So it needs to have all of these features:

Help agents plan their route

Since an agent has plenty of meetings at various hours and in various places around the city, he needs to properly plan everything in order to avoid unnecessary traveling and increased gas costs.

So the app should make his life much easier by carefully planning his route, based on each meeting and its location. The app will show an ideal route that the agent should follow, and will also present the status of each meeting.

Send automatic reminders and notifications

An agent has so many things going on at once that he will definitely forget some important meetings or details. A good offline sales management app should send reminders on a regular basis related to meetings, follow ups and other crucial details.

The app should also notify them when they receive new leads or new tasks. This way they can follow up as soon as possible and increase the chances of closing the deal.

Search for new leads nearby

Sometimes the agent might be done with his work for the day, but there are still hours left in his work schedule. So instead of wasting precious time, a good field sales app should find new leads in his vicinity. The agent will simply have a look at the app and know exactly which leads are nearby in order to contact them.

Easily add new leads

In case the agent meets an unexpected new lead, he should be able to quickly and easily save it into the CRM. If someone calls or sends a message, the phone number should be automatically saved as a potential lead, otherwise, it will get lost among hundreds of other numbers.

Use the app offline

A field agent travels so much, that sometimes he may find himself in a place with no internet connection. But this should not stop a good sales tool, because it should allow agents to log their meetings or to enter new leads.

LeadSquared has the ability to work offline as well. So salespeople can add, edit and update leads on the go without an internet connection.

Track field agents

While most agents are hardworking and serious people, some of them may be slacking and lying about the places they went and the meetings they had. But thanks to a good offline sales management app you will be able to track their route, the number of meetings they had, the check-in and check-out time and other useful details.

Get detailed analytics

Besides being able to see the route and daily activity of an agent, the app should also give you statistics about their performance. Once an agent checks out for the day, a report is being sent to managers with all the meetings they had, the sales they’ve made and so on. This way you can see exactly how each member of the team is performing and how productive and efficient they are.

You can then discuss with each agent and help them improve based on cold facts. Some of them will improve and become better at the sales process, while others will not keep up the pace and will have to leave the team.

Upload documents instantly

Sometimes agents need to collect certain documents or invoices from the clients, and it may take a few hours or even days until they get back to the office. But this shouldn’t be a problem for a good field sales app, which allows agents to upload documents in a matter of seconds and send them to the appropriate person for processing.

This leads to orders being processed faster and clients being more satisfied.

Looking for the perfect offline sales tool that has ALL of the features mentioned above? Then LeadSquared is exactly what you need!

Overall, offline sales management is a key component of any successful business, so make sure to pay close attention to it. And LeadSquared is here to help! Book your 15 minutes online demo today!

Marketers are faced with the burden of bringing in good and high-quality leads for the business. This could include both short term as well as long term goals. But how do they achieve these goals? By running various campaigns, of course. This also means that they have to measure if their efforts are worth it. And that is where campaign analytics come in.


It affects a marketer’s decision on where to invest marketing funds and what strategy he needs to adapt for the future. It is also great at boosting the effectiveness and quality of the business.  And, instead of putting all their eggs in the wrong basket, marketers will know where to invest and why.

What are campaign analytics?

Campaign analytics is the data pertaining to the results of marketing campaigns. Marketing may be running promotional campaigns via email or even through social media. In order to measure the ROI of these marketing efforts, it is necessary to analyze and test various parameters.

Different campaigns created by businesses

You may think that creating a business campaign is as difficult as moving a mountain. But, in reality, it is not. Though it may seem complicated and time-consuming, a well planned out marketing campaign can significantly boost your revenue.

Usually, marketing campaigns are designed to target and reach a very specific set of audiences. You need to identify the goal of the campaign before setting one. The more precise your goals, the more success you can enjoy. There are various types of campaigns that marketers set. But, let us take a look at the three big one:

  • Social media
  • Email campaigns
  • Paid campaigns

Social media campaign

Social media is a great way to reach your audience. As of 2018, there are 3.196 active social media users (Source). This is a huge market right there. And, marketers are fast adopting this as a platform to raise brand awareness. To do this right, you have to first perform a social media audit.


A social media audit lets you know how popular your social presence is. Once you know this, then you can focus on what you need to do to build it or expand your audience further. You can then start building a social media marketing strategy. How do you build this?

  1. Know your audience: Identify your target users. Know where they are most likely to spend their time and be on it. Is your ideal audience, at home mothers between the ages of 30-50? Chances are they use a lot of Pinterest.
  2. Understand the mode of communication: You know where your audience is. Now figure out what to tell them and how. Do you think a very detailed image would do the trick? Or maybe a nice long article? Or perhaps, a video is the way to go.
  3. Find out when to send the message: Now, you need to know when your audience is mostly active. Imagine sending messaged at 3 am to an audience that largely falls asleep at 11 pm.
  4. Curate your content: Don’t just send random messages on a whim. Do your research and send them a mix of various content. Test and keep testing, to know what works best.

Email campaigns

Email is perhaps the most effective method in which you can get your marketing message across. The best part is that it is highly measurable, easy to create and doesn’t burn a hole in your pocket. Similar to social media campaigns, email campaigns also need to be well planned.


Spamming someone’s inbox, just for the heck of it, is not going to win you any points. Rather, irritated leads may just unsubscribe. So, remember to make your message clear and concise and plan your campaigns in advance.

But, how do you know if your campaigns are working?

Metrics to Measure:

The open rate: This shows the number of emails that were opened out of the total number of emails that were sent for the campaign. The most beneficial open statistic is the unique open because it entails the number of people that have opened the sent emails more than once.

Delivery and bounce rate: This refers to how many emails were delivered and how many bounced, that is, undelivered.

Click through rate: Click through rate refers to or shows who is interested enough to read your emails and also to click on the website to gain more information. When the click-through rates of your company increases then it leads to higher conversion rates.

Unsubscribed rates: Unsubscribed rates are the result received from how many opt out of receiving emails from you. It is important because it allows businesses to quickly know something is wrong. They can then take measures to find out why, and how to fix it.

Conversion rates: Marketers or businesses use this data to measure if the important message was related to the target audience.

Paid Campaigns

Paid search campaigns can give your business a great boost and gives you an advantage over your competition. With paid campaigns, businesses can advertise over different platforms and search engines like Google. Search engine users type relevant keywords, and then your business advert comes up.


Although paid ad platforms do charge a fee, there are more benefits to be gained. Most PPC platforms allow you to selectively choose an audience. This allows you to ensure that only relevant people see your ad. Here are some benefits to paid campaigns.

  • It produces a faster result without a lot of time and effort spent.
  • It helps in bringing more customers and leads to your website.
  • It provides better leads.
  • It boosts brand awareness.

Metrics to Measure:

Device: You can measure the performance of your paid campaigns by the device you run it on. Some ads perform better on desktops, while some work better on mobile devices. This actually helps you determine which one to focus on

Click through rates: This is calculated by dividing the number of clicks by the total number of impressions made multiplied by 100%. A higher CTR means, more people are clicking on your ad and that your ad is relevant to your audience.

Conversion rates: This is the math that tells you how well your business is performing. To calculate- the number of conversions divided by the total number of clicks multiplied by 100.

Bounce rates: You can measure your bounce rate using your Google Analytics tool. A bounce is when a user clicks an advert but does not do anything. This will tell you that maybe you need to make your ad a tad more interesting.

Lead Quality:  This is an underrated but very important metric. The quality of the lead tells you if it’s worth running the ad or not. If your ad gives you poor leads who are not interested, it’s all a waste.


Every company or business, that aims to achieve its set out goals and objectives, has to constructively analyze its strengths and weaknesses. There are many parts and sub-parts that need obvious attention. Among such parts is the revenue stream or profits of the company. Very little can be achieved without funds. Revenue analysis is not an easy task. It determines many factors such as the costs of products or production and which areas of the company needs an increase in revenue. To that end, here’s what you need to know about revenue analysis

What Is Revenue Analysis And How Does It Work?

We know revenue can refer to income, sales or turnover, monetary units or just plain money. From here, we get the idea of what revenue analysis means. It’s a deliberate, detailed and well-researched report that indicates revenue for all activities in a company. This can range from sales (products and services), costs, income, and other variables. Revenue analysis is important for business. With it, you can ensure your plans and strategies do not deviate from your goal.


Revenues are derived from the ordinary course of business. All costs or sales and finances involved in the operation of the going concern are documented. Keep in mind that assets sold do not form part of this. Costs of production of goods and services for sale are subtracted from the revenue. As a result, the gross margin is discovered and divided by the general revenue. An upshot on the gross margin often indicates that the business is moving well and profitable. This breakdown of every conceivable cost helps you know and understand performances. All sectors of the business are evaluated against past or previous records. A decision regarding the way forward is then made. Whether it’s an increase in revenue or a cut to the deadwood.

Benefits And Importance Of Revenue Analysis

Helps You Make Informed Decisions

All that recording, research, and documentation can only be vital to your business. For every decision you make, you’d want it to be from a position of strength. From revenue analysis, you get to learn and understand the workings of your business. Also, you weigh each preceding financial and production year against the next. It puts you in a favorable condition planning for the future.

It’s normal for some products to outstrip others in sales and demand. It’s not uncommon for a business to consolidate on areas that yield more profits for the business. From such analysis, you gain insight on how to improve areas where your products and services have failed or are deficient in. Part of the informed decisions is whether to increase your firm’s revenue. It’s all about getting the best results with minimal expenditure.

sales forecasting ebook

Helps To Determine Profitability

Profitability is a great sign your business is thriving and on the right track. Revenue analysis brings this fact into sharp focus. When all the expenses associated with production and income from sales are calculated, you get an idea of how economically viable your business is. Profitability may not be an overall indication of growth but its absolutely vital. The main aim is for your business to make a profit and not doing so makes it an effort in futility. No company can survive for long without profit.

Helps You Plan For The Future

If you’re in business for the long-term, (who isn’t?) then you need to make sound plans and projections for the future. Revenue analysis is key to this. While it’s difficult to get an exact value for the future, an analysis of your revenue and performance of your products and services gives you an idea of what to expect.

From revenue analysis, details of projections for your business begin to emerge. You get to plan your staff strength, review of costs on products (increase or reduction). In other words, you’re trying to predict how the market will unfold in the future. An increase in revenue will continue over the course of the years. If a product is doing badly you can re-strategize or rebrand to give it another shot. More investment may be needed for this but it shouldn’t be a problem if your business has great profitability.

How And Where To Invest

All records from revenue analysis help you know where and how to invest. It’s a fact that there are aspects of businesses to discontinue. But the important part is where to plow your profit into. You can’t maintain the status quo for long. It’s indicative of good growth when your revenue analysis points you towards areas to invest in. The area must not be novel to you or your business. It may be an existing part of your business like a great selling product.

The investment may come in the form of an increase to key areas. Such as target marketing ads to increase traffic to your business. Also, improving products and services delivery and investing in the expertise of staff.

Challenges Associated With Revenue Analysis

It Takes An Awful Amount Of Time

It’s rather difficult to pinpoint exact challenges that could arise from revenue analysis. However chief among them is the amount of time it takes to break things down. Especially if the company is a huge giant. Even startups need a detailed evaluation.

Using good tools like LeadSquared could alleviate some stress. Some revenue analysis takes as much as 5-8 months to finalize. It’s common knowledge that many companies hand out such tasks to external specialist firms to handle.

Estimates May Be Inaccurate

Estimates are a vital part of the business and how you want to grow. But sometimes the figures tell half the story. Present concerns and future projections will get affected by such information. As much as possible, you want to avoid this challenge because it could affect revenue. Sometimes data gets misrepresented or falsified. Systems used may also be outdated. This leaves your business with a setback to fix in order to derive adequate numbers. The best analytics tools alongside experts can correct this challenge.

To conclude, revenue analysis goes a long way to determine how successful your enterprise will be. It’s a routine that ensures that you cover all financial and revenue-based angles.

Business is about people and relationships. It is important to know how these people relate with other people because it will strive to increase awareness about your business. Growing businesses run into the same problem, and that is losing track of your leads and forgetting to follow-up. The funnel CRM or customer relationship management funnel is an instinctive and accommodative lead capture and CRM tool made to help freelancers and small businesses create and manage their leads, build up their customer base and boost their business.

A CRM funnel is a sales method used by business owners to track and interact with potential and current customers. Obviously, to build this funnel, you need good CRM software. This can help business owners to keep track of sales history, conversations, promotions and many more. This allows you to identify who is willing to buy your product and who is not really interested.

What is a CRM funnel

To build a CRM funnel, you need to first be familiar with what a sales funnel is and how you can use the same to interact with your sales CRM tool. It is the process of converting the leads that interact with your business into paying customers. It is also about maintaining relationships, after the sale, by continually providing value.

Like the shape of a funnel, a sales funnel will have most of the leads at the top and the number dwindles slowly as it reaches the bottom. You need to first understand how many potential stages you can build within the lead funnel. More importantly, determine what action or step the lead needs to take, in order to move to the next stage.

Once this is done, you can replicate your sales funnel within your CRM, thus building your CRM funnel. A smart CRM will then start automatically tracking your leads and their journey down each stage. Furthermore, it will even start nurturing and engaging with the leads, based on triggers and activities, to push them down the funnel quicker.

The Various Stages of a CRM Funnel


The sales funnel is a marketing tool used for the conversion of customers. Let’s discuss its stages;

The awareness stage

This is when awareness is created to draw in leads to your business. The lead comes to know about your product or service you offer.  The prospect may have a problem and be in need of a solution to the problem. Very common medium to draw leads over include social media, email marketing, offline and online paid campaigns.

The interest stage

In this stage, the lead expresses his interest in your product or your services by following you on social media and in your contact page. He might even willingly give you his contact details in return for something like a webinar or an ebook.

Decision stage

This stage is when the prospects make the decision of making use of your solution. They start to actively evaluate your product and your competitors. This is also when people from your business start to get in touch with the lead.

Action stage

This is the stage where the customer makes up his mind and finalizes his deal with you. He purchases your product and turns into a buyer. Or he could decide that you are not for him and go in a completely different direction.

sales funnel for managers

Benefits of using a CRM funnel

There are great benefits that come with using CRM funnel software. You can automate and speed up your closing process, contributing directly to your revenue. Let us take a look at some of the benefits of having a proper CRM funnel.

  • The CRM funnel system can help you to deliver your services with an understanding of the needs of the buyers in an improved manner. It helps you know the concern of your customers thereby building a foundation of utilizing the software to improve the interaction between you and your customers.
  • The CRM funnel system helps you understand your customers’ behavior; it makes you know the perfect time you can introduce a product to your customers. It helps you not to waste time dealing with nonprofitable customers, and it helps you to identify profitable ones thereby leading to optimized selling.
  • The CRM funnel system helps in boosting and increasing your sales. Using this CRM strategy can increase your sales significantly, with the information you have about your customers.

As an entrepreneur, it is very challenging to keep track of your sales process. It becomes more difficult when you intend to convert a lead to a customer, no matter the type of business you may be running. Not just funnel tracking, but also figuring out how to turn leads into potential customers is a problem most teams are facing.

Funnel Tracking LeadSquared

This article aims at answering all your questions, including why tracking your lead is necessary. It also helps you understand how exactly you can track your sales funnel and steps to improve your funnel tracking system.

Why Do You Need A Tracking System For Your Leads?

Despite your volume of leads, at every lead stage, you may have deals coming your way. A funnel tracking system will enable you to manage your leads, follow up on quotes, track proposal requests, send frequent task reminders, and maintain good customer relationships. In case a lead gets neglected, chances are you may lose out on a potential customer. But, imagine having to manage all your tasks manually. Trust me, it can get mentally taxing.


Therefore, you need a software or a digital tracking system that could properly organize and track your sales funnel consistently. You know the saying ‘first come, first serve’. If you don’t get to your leads quickly enough, chances are that you may lose out to your competition. Having an autopilot system that tracks your sales funnel and keeps giving you timely nudges, helps you in replying to your leads on time.

How Can Software Help You In Sales Funnel Tracking

A good funnel tracking software will give a precise look into what is happening in your sales funnel. It will tell you how many leads are in every stage of the funnel and how you can push them along the funnel. It will also help you track conversation, meetings, emails, lead stage changes and more.


Your software should also be able to figure out when something goes wrong and why it went wrong. This way the management will be able to figure out how to rectify that mistake. Inadvertently, your funnel tracking tool helps you make strategic business decisions.

How Can Qualified Leads In The Funnel Be Tracked?

Thanks to smart CRMs these days leads are grouped as either hot, cold or warm. This then creates an effective lead scoring system. Your CRM will help your sales teams focus on what they do best: selling! But, a good CRM comes with the ability to also track your sales funnel.

Sales folks contact your potential leads through the phone or their emails. These conversations need to be tracked so that they know what the lead’s last response was and when the last conversation took place. The best way to go about this is to enable your tracking tool to automate your communications with your leads.

Automated workflows such as autoresponders or email nurturing sequences help sales reps to keep the leads engaged. It also significantly reduces the response time, increasing chances of closing the deal much more. Additionally, you also get to know how many leads have opened your emails and had a positive interaction with it.

Another good way your CRM can become a funnel tracking system is through your phone calls. Having an integrated calling system will help your agents to quickly reach out to the lead from the CRM itself. All of this, with a single click. Also, it should be able to record calls and be able to reroute calls if the agent is unavailable.

sales funnel for managers

How Can Leads In The Funnel Be Nurtured?

If you look at a funnel, it is wider on the top and gets narrower as it goes down. This is because only a select portion of the leads that know about your business give you their contact details and even fewer interact with your business. And, still, fewer become your customers. So how can you make your funnel wider?


Sales agents need to keep a check on the leads in the funnel, to ensure that they are constantly engaged. They can also take a look at past conversations of the lead to identify any possible red flags. This is when they can start nurturing them, by sending over educational content such as webinars, ebooks, podcasts etc. Or, you can also offer them some discounts based on their interests. Gleanster reports that 74% of top-performing companies use automated lead nurturing. It is extremely important to constantly nurture leads to push them down the funnel.

Move Leads Down The Funnel Automatically

While managing your sales funnel using your CRM, you need to be aware of how your leads are performing and how long it takes for them to move to the next stage. Knowing how many leads are moving from one stage to another, at any given time, is also advantageous. A good funnel tracking CRM will give your pushes and prompts to enable your leads to move smoothly and quickly through the funnel.

Your tool should use rules and triggers to know that a lead is ready to move to the next stage and then automatically update the lead stage. A CRM saves you the stress of keeping track of thousands of leads yourself. By setting timely reminders and notifications, salespeople are fully aware of what is happening in their funnel.