The sales funnel definition might vary depending on who you are asking, but in general, it has a clear meaning that we will go deeper into in this article. The practical perspective that most will agree on is the idea that all customers are led through more or less the same phases when making a purchase. A sales funnel would is the appropriate marketing term used for the journey of prospective customers. A lot of steps are essential to creating a reliable funnel. These are typically known as top, funnel middle and funnel bottom, although such steps differ based on the company sales approaches.
What is a Sales Funnel?
Sales funnel definition translates into the structure of sales funnel on your part as the prospects go through, beginning from Untouched > Got contact (sales Lead) > Qualified > Presented the proposal > Negotiation process > Locked the Deal.
The sales reps with top performance are well versed will all the steps of sales funnel from inside as well as outside. 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, sales funnel that is well-defined improves the journey of the customer along with the health of the 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?”
- For 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?
- How 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 such a stage, the Leads get Qualified as you’re talking to them while asking questions that bring 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, the best solution available, and are now about to select provider for purchasing the solution from.
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 for long?
- What are electricity contract terms with the (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. You get a clear view of available opportunities for you along with the whole sales team, helping you in forecasting months ahead of revenue.
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.