A sales funnel is a term that’s used to describe the journey a prospect takes from initial awareness to becoming a paying customer. The typical funnel will involve several steps, often referred to the top, middle, and button, and a prospect will usually have to pass through each of these to become a customer (though steps may vary depending on a company’s sales model).
The underlying premise of a sales funnel, which is sometimes referred to as a “marketing funnel” or a “revenue funnel” is that every single sale will begin with a large number of prospects but only end with a much smaller number of actual customers who purchase a product or service—hence the term “funnel” which is wider at the top and narrower at its tip.
A sales funnel is a visual representation of the customer journey from initial awareness to purchase and loyalty. It outlines the stages prospects go through as they move from being potential leads to becoming paying customers.