What Is A Sales Funnel?
Always hearing about Sales Funnels? Not quite sure how they relate to your business? This article explains why this model is fundamental to any growing business.
Sales Funnels: Distilling Business Success.
The lifeblood of any business is sales. Without sales, a company will not be sustainable. However, there is more to sales than merely a customer handing over their money. Even for simple transactions, a customer goes through several stages before they decide to make a purchase. A sales funnel visualises this process. The Funnel represents the path the customers take before purchasing your product or service.
The main benefit of using a sales funnel is that it allows you to target where your potentially missing sales. It is also incredibly important for companies with higher-level products or services to understand. It is more challenging to move a potential client down the sales funnel for a higher-level product. For example, it will always be more challenging to sell a car than a can of coke. Therefore, the sales funnel is an incredibly important function for all businesses and it should be considered as part of any sales plan.
Stage 1: Awareness
Awareness is the first stage of any sales funnel. This is stage is where you first capture the attention of the client. For example, a person looking to upgrade their servers might see a Google advertisement for your business. Awareness is the widest part of the sales funnel. This is because the bulk of your advertising casts a wide net over potential clients. Companies can grow there Awareness through both digital and offline means. This stage doesn’t necessarily occur just through advertising, but it can be expanded through brand development and word of mouth. A registered trademark is a great way to build brand awareness.
Stage 2: Interest
Interest is the second stage of the sales funnel. The customer is now not just aware of the product, but they are at the stage where they are considering to make a purchase. Customers will start to research and compare your products with other products. This stage is sometimes underdeveloped because businesses can only become concerned with trying to convert a sale. At this stage, it’s essential to develop a rapport with the customers. Offering customers some access to your products and brand is critical for building Interest. Some strategies include developing engaging online content for your brand and offering free trials. Never underestimate the importance of creating Interest for your potential customer.
Stage 3: Decision
The Decision is the most critical stage of any sales function. At this stage, the consumer is now ready to make a purchase but they need some final convincing to convert the sale. The basis for any Decision is trust and ease. A customer will only purchase a product if they trust your businesses product. This stage is the time to offer customers exclusive deals or bundles to ensure the customers know they are getting the best price. A great way to build transparency is to include terms and conditions between yourself and the customer. Ease is also incredibly crucial because customers respond to efficient products and services. Therefore, the Decision is the most vital part of the sales funnel.
Stage 4: Action
The sales funnel doesn’t just end after the consumer makes a purchase. Businesses need to take Action to ensure they receive the maximum value from the customer. Once he or she makes a purchase, a customer needs to be added into your businesses ecosystem through a developing relationship. Action doesn’t need to be a grand gesture; it can be as simple as providing follow-up sales calls to check the customer is happy with their purchase. One of the benefits of Action is the ability to be able to upsell to the customer, allowing you to add more value. Therefore, Action is an essential feature of a sales funnel.
Watch Your Sales Funnel grow
As you can now see, understanding the sales funnel is crucial to developing your business. This simple model allows you to refine your sales and marketing strategy. It also becomes a cost-saving mechanism because your business is more efficient with its resources. Hence, companies should always consider a customer’s position within the sales funnel.
Josh is a Legal intern at Lawpath. He is a Commerce/Law student at Macquarie University. He has an interest in cyberlaw and blockchain technology.