The sales funnel definition might vary depending on who you are asking. In general, it has a clear meaning that we will go deeper into down below. A sales funnel would is the appropriate marketing term used for the journey of customers. A lot of steps are essential to creating a reliable funnel. And like a funnel in real life, there is a top, middle and bottom part of a funnel.
What is a Sales Funnel?
A sales funnel definition will be described as one way by a marketer. But then a totally different way by let’s say an economy professor. But for us as marketers, it’s always about how to increase leads and sales. Like the image above shows, a sales funnel is created with a beginning and an end. Untouched > Got contact (sales Lead) > Qualified > Presented the proposal > Negotiation process > Locked the Deal.
The salespeople should also be versed will all the steps of sales funnel. Two reasons are present for this:
- They are easily able to address the key requirements of the customer and ultimately deliver the right message at the right time.
- They are able to scale up the sales process, forecast revenue from sales, and achieve their targets.
To put it simply, a sales funnel that is well-defined. Improves the journey of the customer, which is directed linked to the success of a company.
Understanding Sales Funnel Stages.
While different organizations manage the sales process differently, the funnel stages are structured in three distinct stages accordingly.
1. Sales Funnel Top: Discovery and Awareness
Early in journey, the prospective customers go through certain issues and are learning and researching about it.
Here, they’re still identifying challenges. There are different questions as they’ve not named problem – they only know symptoms.
A few examples for questions that they would have for certain industries are:
- For interior decoration: “Why my house doesn’t appear vibrant?”
- Client support software: “Client support industry benchmarks”
- For the provider of electricity: “Average bill for electricity”
At the sales funnel top, the prospect is wanting to feel confident and educated to communicate their issues. The new and untouched prospects are turned into prospects that are contact made. Then they become your leads. You can ask appropriate questions and get your lead qualified.
2. Middle of Sales Funnel: Researching Solutions
Now, your leads have defined problem, and are searching for services and products for a solution.
Some questions they can ask are:
- How to get prompt customer support over the phone?
- How to select the best interior product?
- What’s the best way to reduce electricity bills?
The type of content that would be most relevant for serving the leads in the particular stage would be comparison style checklists, in-depth guides, lists of benefits, and disadvantages along with other insightful pieces.
In this stage, the leads qualified as you’re communicating with them. Asking questions that bring them closer to better decisions for addressing their problem through your product or service.
3. Making Educated Decision for Purchase
Finally, the funnel bottom is when the leads know everything about the issue and how your product is the solution.
Due to this their concerns and questions in the stage remain vendor driven. This the online searches, along with the questions, might appear something like:
- Does (software provider a) has better support features compared to (software provider b)?
- Which interior product would suit my home and last long?
- What are electricity contract terms are best comparing (provider a) verses (provider b)?
This is what would help in making decision suitable with the requirements, certain issues, budget, along with relevant sources.
How a Good Funnel can Benefit Any Business
Sales funnels are a fine measurement of your company’s overall health.
A quality sales funnel also helps you track certain metrics whenever you want:
- Transactions that took place in the funnel.
- Average deal size in the funnel.
- The Close ratio: the deal average percentage that you got.
- Sales velocity: the average deal lifetime before it has been won.
All these metrics are essential for analyzing business performance and are connected with each other.
Business owners known pain associated with missing out on a sale, so it’s vital for them to be well versed with sales funnel definition. Just after a few weeks of demos, pitches, charm, and chatter, the prospects drop out of the sales funnel without purchase.
This frequently happens, but it would less often happen when you’re having the right management help available for the sales funnel. A lot of small business funnels are similar to sieves, left with holes after patched spreadsheets, missed out appointments, sticky notes, with overlooked follow-ups.
Another great way is using marketing and sales automation software for plugging holes present in sales funnel and turn the near-missed out sales to real sales. If you want to learn more about funnel software, then you should read more on Clickfunnels.