What Is A Sales Funnel?
A sales funnel can help you track your leads as they progress closer to becoming paying customers.
A sales funnel is a tool used to track leads as they progress from prospects to customers.
By examining your sales funnel, you can optimize your sales and marketing efforts.
A sales funnel consists of three segments: top, middle, and bottom (or high, middle, and low).
This article is for small businesses that want to improve their sales and marketing strategies.
Whether you have a brick-and-mortar or online business, you need to create a sales funnel to attract and convert visitors into customers. The key goal of your sales funnel is to move people through the different stages of the sales process until they are ready to buy your products or services.
A sales funnel describes the steps an individual takes on the way to becoming your customer. It consists of three parts:
The top of the funnel is the marketing that attracts prospects to your business (e.g., the advertising on your physical storefront, or the landing page of your website).
The middle of the funnel involves all the parts of your sales process prior to the sale (e.g., people trying on clothing in your store, or website visitors reading about the benefits of your products).
The bottom of the funnel is the final purchase (e.g., customers paying for clothes at checkout, or website customers entering their credit card info to complete a purchase).
Key takeaway: A sales funnel describes where an individual is in their buying journey, whether they’ve only just become aware of your brand or they are a brand-loyal repeat customer.
Importance of a sales funnel
The sales funnel shows the path your customers will take on the way to purchasing your product or service. Analyzing your sales funnel will help you understand how it works and where it does not. It will also help you identify the holes in the different stages of your sales funnel (i.e., where prospects drop out and do not convert into customers).
Understanding your sales funnel will help you influence how prospects move through it and whether they convert into buying customers. It will also provide insight into what customers are thinking and doing at each stage of the sales funnel so you can invest in marketing activities that attract more prospects, develop more relevant messaging at each stage of the sales funnel, and convert more prospects into paying customers.
Key takeaway: Solid knowledge of your sales funnel is essential for understanding your customers’ buying journeys so you can identify gaps in the process and invest in the most effective marketing strategies.