2. What is Sales Funnel?
A sales funnel is a step-by-step process that allows you to analyze a customer’s shopping journey and use this
knowledge to bring him closer to your offer and a buying decision. It is done through a series of well-planned sales and
marketing strategies such as:
• sending automated emails,
• creating educational videos,
• writing valuable content,
• building eye-catching landing pages.
At the beginning of the process, there are a
lot of people who take the first step.
However, as they continue, some of them
drop out – then, the number of participants
decreases, making the sales pipeline the
narrowest at the bottom. The people who
traveled through the whole funnel are those
that converted.
The giants of each industry perfectly understand the marketing funnel, which helps them acquire customers at profit
and scale. Instead of just hoping for the sales, they figured out how to have an impact on them. Someone running a
successful business simply can’t rely on factors that are out of their control.
3. WHY IS A SALES FUNNEL IMPORTANT?
• Every business needs a constant flow of leads and
customers – with a well-designed sales funnel, you
know how to target customers at every stage of
their customers’ journey.
• Turning prospects into real customers – high
website traffic has no real value if your conversion
rate remains the same.
• Getting loyal customers – sales funnel helps your
marketing team understand which products your
customers are interested in. That way, your team
knows what recommendations would inspire your
clients to repurchase.
• Consistent and predictable revenue – with
performance analysis, you will be able to measure
how your marketing channels are performing on a
daily, weekly, and monthly basis.
• Finding drawbacks of your business – understanding
each stage of the funnel can help you find the holes
in your business system, that is the places where
prospects drop out and never convert.
4. 4 Components of a Sales Funnel
Awareness
Interest
The potential customer is actively seeking solutions to
his or her problem(s). The potential customers finds
you and takes an interest by signing up for your lead
magnet or follows you on social media.
The potential customer learns of your solutions for his
or her problem; hears of your offer, product, sales or
services.
The potential customer makes a purchase with you.
The potential customer likes your products, services,
and solution and has decided to move forward with
your offer.
Decision
Action
5.
6. For example, a gamer looking for a mechanical keyboard should be presented with educational content that compares
them to membrane keyboards and points out its advantages.
As you can see in the image above, HP has published such a post on their blog. The content presents not only insights on
both types of keyboards but also shows specific proposals, as the company wants to move customers down the funnel.
Interest Stage
Once people become aware of your brand, you want to
awake their interest in your products or services. In this
stage, your task is to not only awake customers’ curiosity
about your products but also build trust and authority. This
way, people will feel comfortable with your business.
From the customer’s perspective, the interest stage is when
they’re doing research, comparing different products, and
reconsidering the choices. With that in mind, you might need
to focus on activities that help them but aren’t minded to do
sales.
7. Wrapping up, the interest stage is where you should educate your
prospects on how they can solve their problems and achieve their
goals. During that time, you can start building the demand for your
products and services to get leads.
That can be done by subtly offering the so-called lead magnets –
in the case of a gamer above, you might offer a free consultation
regarding a keyboard choice. However, HP goes straightforward
and includes a clear CTA. If the content turns out to be convincing,
this may be what many people actually want.
Decision Stage
The decision-making stage is where your potential customer has already finished the research process and makes a
decision based on the acquired knowledge. Your goal is to help them make a positive decision and finally become your
client. At this stage, customers are paying more attention to what you offer
8. Action Stage
• After your prospects have decided to purchase your product or service, it’s time to finalize the deal.
• If the customer relationship goes far beyond the act of purchasing, it gives you a chance to acquire loyal customers and
therefore increase conversion rates.
• After the buying process is complete, focus on customer retention by expressing gratitude for the purchase, inviting them
to share feedback, making your brand available for support, etc. The marketers call this next stage an upsell stage.
Upsell Stage
• The upsell stage is where your business can make more money by encouraging customers to buy other related products
or services.
• Even though it may seem pushy in terms of in-person sales, the problem doesn’t exist in eCommerce. What is more,
eCommerce brands can have an insight into the data to better understand what items or services would be the most
relevant to the customer.
• While working on the upsell stage, it’s crucial to determine what other products or services your customers might be
interested in.
9. What is a Marketing Funnel?
Differences between Sales
funnel and Marketing
funnel
Definition
The sales funnel refers to a system that guides a prospective
customer from the marketing stage to the conversion. On the
other hand, the marketing funnel refers to the process of
converting a lead or a prospective into a customer.
Focus
While the sales funnel focuses on making more product or
services sales, the marketing funnel focuses more on brand
recognition and image.
Interest
In short, the term marketing funnel describes the customer journey from the awareness stage –
when the customers get to know about the brand – to the transaction stage, when a website
visitor becomes a customer
10. WHAT are the processes and stages
involved in making a sales ?
• The 7-step sales process
1. Prospecting
2. Preparation
3. Approach
4. Presentation
5. Handling Objections
6. Closing
7. Follow-up
11.
12. 1. Prospecting
In this stage, you find potential customers and determine whether they have a need for your product
or service—and whether they can afford what you offer.
2. Preparation
At this point, you develop your sales presentation and tailor it to your potential client’s particular
needs.
3. Approach
In the approach stage, you make first contact with your client. Sometimes this is a face-to-face
meeting, sometimes it’s over the phone. There are three common approach methods.
• Premium approach: Presenting your potential client with a gift at the beginning of your interaction.
• Question approach: Asking a question to get the prospect interested.
• Product approach: Giving the prospect a sample or a free trial to review and evaluate your service.
4. Presentation
In the presentation phase, you actively demonstrate how your product or service meets the needs of
your potential customer.
13. 5. Handling objections
This is where you listen to your prospect’s concerns and address them. Successfully handling objections and alleviating
concerns separates good salespeople from bad and great from good.
14. 6. Closing
In the closing stage, you get the decision from the client to move forward. Depending on your business, you might try one
of these three closing techniques.
• Alternative choice close: Assuming the sale and offering the prospect a choice, where both options close the sale—for
example, “Will you be paying the whole fee up front or in installments?” or “Will that be cash or charge?”.
• Extra inducement close: Offering something extra to get the prospect to close, such as a free month of service or a
discount.
• Standing room only close: Creating urgency by expressing that time is of the essence—for example, “The price will be
going up after this month” or “We only have six spots left”.
7. Follow-up
Once you have closed the sale, your job is not done. The follow-up stage keeps you in contact with customers you have
closed, not only for potential repeat business but for referrals as well. And since retaining current customers is six to seven
times less costly than acquiring new ones, maintaining relationships is key.
