What is a sales funnel?
A sales funnel is a model for visualizing every phase in the consumer buying journey, from the time prospects discover a product to the minute they buy.
The top of the funnel represents ‘awareness,’ when prospects find a product, while the bottom represents the ‘decision,’ when potential customers convert into real consumers. At each phase the number of prospects narrows, with only a portion converting in the end.
As a beginner in business, you might find that you have a great business idea and an amazing product to sell. You expect that you can make a big kill in the market. Sadly, an amazing idea is not enough to be successful. A business owner should understand the tricks of understanding customers and the selling process to avoid the pitfalls of a business flop.
Why sales funnels are very important
Sales funnels enable business to picture each step that prospects behave along the buying path. Each step is a micro-conversion that can be optimized to increase conversions in the end. If one of these steps shows a higher-than-expected drop-off rate, it can be analyzed to see what has gone wrong and test out possible improvements.
Funnel tools like Google Analytics help you picture the actions that clients take across your website and spot pages with high drop-off rates, displaying the number of visitors leave the funnel at each action.
One important principle in business world is the sales funnel. It is what business owners use as a recommendation for list building and closing sales. A sales funnel is like an upside down triangle. There are more would-be consumers at the top of the funnel, but only a few prospects who may buy your offr at the bottom of the funnel.
The 3 parts of a sales funnel.
AwarenessIt indicates the stage when the potential consumer has actually discovered your organization and understands your item in general terms
ConsiderationIt suggests the stage when the potential customer has actually revealed interest in your item by searching your website and doing item research and comparisons
DecisionIt shows the stage when the prospective client reaches the point of conversion and chooses to either exit the funnel or purchase your product
The 6 stages of a sales funnel
Stage 1: Visit
At this stage, potential clients are showing up on your landing page, and are navigating to different pages of your website. They’re at the widest point of the funnel: if they were in a traditional store and a sales representative approached them at this point, the consumer would say, “I’m just looking.”
Stage 2: Lead
When the customer sees something they like, they take a step down in the funnel, and they become a ‘lead.’.
At this moment, leads have a clear interest in your item, and they might start doing item research and contrasts. This point of the funnel is still quite broad. The client has a problem and knows your proposed service, however it is still unclear whether or not your item will fulfill their requirements.
Stage 3: Marketing Qualified Lead (MQL).
At this stage, your leads are going to understand one of two things: either your product has the potential to work for them, or it absolutely does not.
If you have done your research, your unique selling proposal (USP) is clear and you have customized your sales funnel to attract marketing-qualified leads (MQLs) based upon user personalities that you built from group and psychographic information.
Stage 4: Sales Qualified Lead (SQL).
When potential customers take the step from MQLs to SQL, this indicates that they are nearing completion of the Consideration stage, and are now near entering the Choice phase of the sales funnel.
SQLs have investigated and compared products, and have actually figured out that yes, your product does fit the costs, and is a practical service to their issue. The leads that are leaving the funnel at this point are a missed out on chance simply because they found another solution.
Phase 5: Chance.
This is where your offer and call to action (CTA) take the stage.
When an SQL has made it to this point in the funnel, they are only one step away from converting. Your USP and CTA might make or break the opportunity phase of the sales funnel. Either your product is the one option, or it is not. Your job is to to answer their concerns and provide social proof.
Phase 6: Client.
This point of the funnel is the last part where conversion happens and prospects now become your clients.
Your job does not end here, though. Your consumer has selected your product over a great deal of other readily available alternatives. Earn their trust and commitment by engaging with them at this moment. For example, send them a follow-up email consisting of resources and posts that they may find beneficial, or share a post-purchase survey so they can tell you about their buying experience so that you can enhance it for future customers. This final action presents a chance for you to encourage the client to come back and browse more products and become a repeat customer.
Why your business needs a sales funnel.
A sales funnel helps you to define and comprehend your consumers buying habits much better. Knowing how customers discover you, why they find you, and why they stay or leave is the crucial to growing your business.
An online sales funnel can help you focus on the right leads.
Developing a sales funnel provides you insights into what leads to pursue.
It lets you devote time and resources dealing with sales leads that are promising, instead of costs too much time chasing wrong leads.
Every action of your interaction with potential customers offers you an opportunity to get more information about them and find out who is serious and who is not yet ready to buy.