When it comes to the digital marketing industry, one of its core concepts is the sales funnel. It may sound a bit odd in the beginning. However, it’s a core concept that has the ability to take your business from a literal startup to a multi-million-dollar company that has mass saturation. As a matter of fact, business people skilled in the area of the sales funnel, build entire careers around implementing this one, lone concept as far as business goes. So, what is a sales funnel?
Understanding the Funnel
The concept is quite easy to explain and understand. From the starting point when a prospective customer who is interested in your product or service hears about your company until the point in time when he buys said product from you, he or she will pass through separate stages of what is called your sales funnel.
It’s a journey that will depend on one prospect or another. It typically depends on your buying personas, the niche you are in, as well as what you are selling. Therefore, it’s important to understand that there is no pattern you can apply here. Your sales funnel can have as many layers or tiers as you want or need it to have.
However, as a rule of thumb, a sales funnel has four main layers, as follows, from top to bottom.
- Awareness – the first stage, at which a prospective customer learns that your product or service exists on the market. They also become aware they have a problem which needs to be solved.
- Interest – the prospective buyer is looking for solutions to his problem or need on the internet. This is when you need to step up with an ad or a sufficiently interesting website so as to spark up his interest. He will follow you on social media to keep up with you, subscribe to you, bookmark your page, and so on.
- Decision – the step in which the prospective client decides he does want to make good use of the solution, product or service you are offering. Therefore, he researches a lot deeper into the qualities of said products, its price, how he can reach it, and so on.
- Action – the prospective client becomes simply the client by making a purchase and finalizing a deal with you.
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Building the Sales Funnel
Knowing what is a sales funnel is not enough. You also need to know how to build one. Luckily, the explanation of how it works along with its stages are also the schematic of its construction, as shown above. Still, you do need to keep in mind that there might be different stages of converting a prospective buyer into an actual customer. Taylor these stages according to your type of business and needs, and include them in your sales funnel.
Your work is not done when you know what is a sales funnel. Nor is it when you build one. Constantly analyze the data you put in, improve and update it. It’s the only way you will get accurate results for your business.