What Is A Sales Funnel?
A sales funnel is a visual metaphor for the path taken by a potential customer as he or she moves towards becoming a customer. Frequently used by sales and marketing organizations, the sales funnel helps companies understand and visualize their sales process and measure overall conversion success between each step of the funnel.
A sales funnel is shaped like an inverted pyramid, similar to real-world funnels, to which the metaphor alludes. The width of each part of the funnel reflects the audience size, with the top of the funnel being the widest and the bottom being the smallest.
At the top of the funnel are website visitors or mobile app users, and the bottom of the funnel is usually a sale or conversion. The goal of marketing sales in this model is to do lead generation for the sales team by getting as many prospects in at the top of the funnel and convert them into customers.
Marketing And The Sales Funnel
The sales funnel is fueled by marketing activities that generate awareness and build demand for a product or service, such as social media posts, webinars, blogging on relevant topics for your target audience, ad retargeting or strong SEO.
Moving a customer through the funnel is a carefully orchestrated set of activities designed to raise awareness and educate the prospective customer on the benefits of your offering to move them toward making a buying decision.
Over time, customers move down through the sales funnel – from initial contact to final purchase – as they learn more about your product and express intent to purchase and further interest in it.
As the funnel narrows at each stage, prospects drop off so that fewer and few potential customers left. The objective of an efficient sales and marketing process is to improve the conversion rate at each stage of the funnel so that more customers make it through the full funnel.
Types Of Funnels
Sales funnels vary widely by industry. The B2B sales funnel for an enterprise software company can last several months or more, while the sales funnel for a B2C ecommerce website may be just a few minutes. Some funnels have multiple phases, while others only have two or three.
For example, a typical sales funnel for an ecommerce site might start with website visitors at the top, people who add items to their cart and people who visit the checkout page in the middle of the funnel, and customers who complete the transaction at the bottom.
The entire customer journey for the e-commerce funnel above could take place in a matter of minutes, as a customer visits the site, adds items to their cart, and completes their purchases to become a paying customer.
This can be contrasted with an enterprise B2B sales funnel which can takes place over the course over several months, with website visitors entering in at the top of the funnel, becoming leads by filling out their contact information via a form which triggers an opt-in to be nurtured through e-mail marketing campaigns, then eventually reaching out to a salesperson to sign a contract. A B2B lead may also require additional nurturing to drive awareness during the months leading up to signing a contract such as reading customer case studies, downloading free e-books or reviewing documentation about the product.
These sales funnel stages can also be broken up into smaller funnels, zooming in closer to each stage of the funnel and looking at each specific action that the user takes to the next step.
Importance Of Understanding The Sales Funnel
Understanding the concept of sales funnels is important because it’s a useful model for visualizing the customer journey from initial awareness all the way through conversion. The sales funnel provides a useful framework through which you can analyze your business and identify areas for improvement.
For example, an e-commerce site might model their visitors in a funnel, and identify that there is a large drop-off in users between visiting the shopping cart and actually completing the transaction. Using this data, the company can then form a hypothesis as to why this is the case and test ideas for improving, such as reducing form fields, establishing trust with sales, making CTAs more prominent or offering limited time offers.
By testing these ideas through controlled A/B tests, the company can work to reduce their shopping cart abandonment and increase the percentage of visitors who make it through the funnel.
Optimizing Your Funnel
A/B testing software programs such as Groovefunnels can help you during all phases of the sales funnel. You can set up tests within minutes and start optimizing your website, landing pages, sign up forms, e-mail newsletters and more.
By fine-tuning these key customer touchpoints with Groovefunnels, you can maximize yield in each part of your sales funnel, helping you increase revenue right away.
Prospects drive away when you try to push a sale. That’s why we moved from pamphlets to white papers and started creating useful and entertaining content just to attract prospects. For most people, this is where digital marketing ends. They have no idea how terribly mistaken they are. Just because a person has landed on one your posts, doesn’t mean he wants to become your customer. People find it irritating when someone tries to push them towards a sale. You drive away even those prospects who wanted to make the purchase.
That’s why every business should create and follow a sales funnel. This has many benefits, leading to one goal of increased Return on Investment. A sales funnel works according to a plan to affect the decision of prospects. You don’t make their decision for them, but let them get to the conclusion of making a purchase. Here I’ve shared how a sales funnel can help you grow your business.
Makes Marketing Easier
A sales funnel tells you exactly what you need to do step by step according to the interest of your audience. You have to first build an audience persona and make it as precise as possible. It will then work with the funnel to drive sales. Marketing becomes easier when you know what you are doing. You don’t even have to make new pages or hire designers and programmers to implement a sales funnel. Simply use a sales funnel tool to make every page, form, or webinar according to your business type within a few seconds.
Content Becomes More Appropriate
Every piece of content needs to be designed according to the reader. You have to learn about their fears, interests, and many other things to create convincing content. With a sales funnel, you would know the stage of the buyer’s journey. This allows content marketer to choose a topic and use a language that connects to the reader leading them towards a sale.
Lesser Risk and Better Forecast
A lot of people go into the funnel and only those come out who will actually purchase what you offer. There won’t be any extra effort or waste of time and resources on people that are not your prospects. With one or two experiments of funnel, you would know exactly what percentage of visitors make it to the other side of the funnel. This allows you to better forecast results, reducing the risk of every new step.
Improved Conversion Rate
You drive away many potential customers when you hurry into making a sale. A sales funnel is a process comprising several steps between the time of visit and sale. You start with helping your audience identify the problem and find a solution, and then lead them towards an action. The goal of each phase can be achieved through different tools of content marketing that fit best for your audience. In the end, you will see that more visitors made the purchase with this targeted marketing.
GrooveFunnels is, by far, the best way I have found to be able to build websites, sales funnels and sell digital products online.
The best part? It’s FREE.
Groovefunnels is not just a website and sales funnel builder.
Here’s just a quick list of what I’ve gathered so far:
- FREE sales, page and funnel building platform
- Possible to build my own branded websites with full navigation
- Can integrate with my own custom domain name
- Able to sell my products with what they call a 1-click upsell
- Capability to integrate upsells, downsells, and order bumps
- Even has a way to create my own powerful affiliate program for my products!
And that’s just for starters, because there is so much more for me to explore!
Make Money Online Boss