Sales Funnel
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.
Sales Funnel Explained:
Inside Sales Representative FAQs
What is a sales funnel?
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.
What are the stages of a typical sales funnel?
The stages of a typical sales funnel include:
Awareness – Potential customers become aware of the product or service.
Discovery – Prospects seek more information about the product.
Evaluation – Prospects evaluate the product or service against alternatives.
Intent – Prospects express a desire to purchase.
Purchase – The transaction is completed, and the customer buys the product.
Loyalty – The customer makes additional purchases or recommends the product to others.
Why is the sales funnel important?
The sales funnel is important because it helps businesses understand where prospects are in the buying process, identify areas for improvement, tailor marketing and sales efforts, and measure the effectiveness of sales and marketing activities.