Sales Funnel

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Sales Funnel

What Is a Sales Funnel?

A funnel, sales and marketing teams use to strategise and monitor the movement of leads through the customer journey.

Why Is It Called a Sales Funnel?

The analogy comes from a real-world example of a funnel. At first, you pour a substance into it in a large amount, only to see it filtered down through a small hole in smaller quantities.

There are several stages in the sales funnel, depending on how the company wants to promote its offers. And whether you realise it or not, your business already has a sales funnel. 

Lots of visitors may hear about your product. Some of them will be interested to learn more, but only a few are going to make the purchase decision.

Why Does Your Business Need a Sales Funnel?

Online customers lost trust in the ads they see online. It takes more effort now to convince people of your offer than it did a decade ago.

That often results in visitors dropping out from your sales funnel — which means many lost sales for you.

To prevent that from happening to you, and to improve the effectiveness of your systems, you need a sales funnel. It has to be specifically optimised for your target audience.

Without a sales funnel, it’s hard to tell where the problem is if you don’t track the data. Having one in place allows you to optimise the buying process and improve it. 

A sales funnel also helps you communicate the right message at the right time.

By understanding your potential clients, you’ll know when to follow up with them. That allows you to send special offers, such as discounts, to get them to reconsider their decisions.

What Are the Stages of a Sales Funnel?

Each stage in the sales funnel requires a different message to be effective. You can’t expect someone who knows nothing about your solution to buy your product or service.

Sales funnels are divided into four steps that make it easier for companies to monitor the buying process.

You may find different terminologies online — but, they all mean the same thing.

diagram four steps - sales funnel

Let’s take a closer look at each step.

1. Awareness

At the awareness stage, your goal isn’t to convert anyone. You’re trying to establish yourself as an authority and gain the trust of your new visitors.

The visitor is just getting introduced to the idea that there is a solution to their problem. They may see your ad on Facebook or land on your website via Google, and they end up finding value in your content. 

You may capture their email address or get them to follow you on social media.

2. Interest

Some of your prospects from the awareness stage will show more interest in your solution. 

For example, they may begin conducting product research and comparing different offers. 

What you can do here is offer more helpful content in a genuine way that helps them choose a proper option. But, you shouldn’t push any of your offers here. 

If you think about it, that goes against the whole idea of leading potential customers through a sales funnel.

3. Decision

This is the stage where a prospect has decided to buy, but he or she is still stuck trying to pick an option.

There are a lot of ways to make your offer stand out more. 

For instance, customer reviews and testimonials are a huge plus to your business.

You can also offer something your competitor isn’t delivering, such as free shipping, limited discounts, or special offers.

4. Action

"Action" is the final stage in your sales funnel. It takes an enormous amount of work and energy to arrive at the bottom of the funnel. 

The prospect has decided to go with your product or service. You've successfully guided them through your sales path. 

Yet, your work here isn't complete. 

Your next mission is to keep your customers loyal to you and your business. Getting them to buy from you again is your new aim.

How Can We Help?

Are you struggling to get your prospective customers through the sales funnel? You might be going wrong somewhere and we can help!

Get in touch and we’ll organise a free strategy session for you and your team.

If you don’t have a team we can pair you with one at our recommendation to implement your personalised plan of action!

In the meantime, keep an eye on our blog for the latest updates in the marketing world that could be affecting your business without you even knowing it.