The sales funnel, which is sometimes referred to as a marketing funnel or revenue funnel, illustrates the idea that every sale begins with a large number of potential customers, and ends with a much smaller number of people who actually make a purchase.
Sales funnel stages will vary according to your business and the products and services you offer, but they are generally divided into four sections.
Awareness & Prospecting
This stage includes the largest amount of customer prospects. It’s at this stage in which customers have determined they have a problem, begun searching for a solution and become aware of a business providing such a solution via content marketing, an email campaign, social media marketing or other avenues, usually following research.
Interest & Engagement
At this stage, the number of customer prospects begins to decrease, but the possibility of a sales conversion increases. This is generally when the customer will engage with the business, request more information and ask questions. This stage is crucial for a business as it providers an opportunity to showcase all the benefits of buying from your business and not the competition.
Research & Decision
Once the customer has become aware of the business, reached out and sought answers to questions, it’s time for the decision. This stage of the process may include sales offers and further research into the different options available, presented by the business and the products or services on offer. Discounts and special offers can clinch the deal at this stage in the funnel.
Action & Sale
All of the previously mentioned stages funnel down into the final step: action. At this point, the customer has decided to purchase the product or service and the sale is finalised.
Every business should understand and master every stage of their sales funnel, as it has been proven time and time again that a well managed and engaging sales funnel has a significant role in increasing sales.