In this article you will know what is a sales funnelwhy it is important and what are the 5 stages that make it up.
The sales area is essential in all companies, this is unquestionable. Of course there are other areas without which a company would not survive in the long term; but without sales, there is no money…it’s that simple.
As a result of this, you will be able to find hundreds of books and information related to sales techniques, neuro-linguistics, software and other knowledge that will teach you to sell more. And the subject of this article is no exception.
So let’s get started…
What is a sales funnel.
A sales funnel is each of the steps that a person must take to become a customer.
Imagine that you are browsing Instagram, you see an advertisement for a product/service that interests you, “click” and you arrive at a web page. From the salesperson’s point of view, you’ve just taken a step toward becoming their customer because you’re one step further into the funnel.
In general, the sales funnel has a graphical representation like the following:
Before we look at each part of the funnel in detail, let’s first learn why it’s important.
Why is a sales funnel important?
Mainly because it allows you to understand why you are not getting more customers. You achieve this by identifying each step of the funnel and what are the stoppers or complications that generate more friction and do not allow people to continue “downloading” until they become customers.
Therefore, you have the possibility to optimize your processes and achieve a higher conversion. Let me give you a real example:
I’m working on an app that seeks to improve the quality of life of pets, it’s called PetVoice. After validating the idea and executing it, we got more than 500 downloads. However, the number of registered users was very low.
When analyzing what was happening in our funnel, we realized that the validation emails were not arriving (to make sure that the person who registered was indeed the person). So the user got bored and uninstalled.
Although at first glance this is a very bad thing, it also showed us an optimization opportunity. After changing the validation method, the registration rate increased. However, our funnel showed us that there were other areas that were creating friction as well, and we continue to work to improve them.
A sales funnel allows you to see what is wrong and therefore you will know where to focus your efforts to improve it.
The 5 stages of a sales funnel.
You will be able to find many sales funnels, some with more stages or steps than others; but ultimately, there are some stages that everyone has and they are the ones we will see below:
Attraction
This stage is when you take care of draw attention of your potential customer. It can be a campaign through social networks; a post on FB; a radio spot; or whatever can generate a first contact.
Have you heard that the first impression is what counts? That is why the importance of the marketing mix is. You must project a homogeneous image, to a specific audience, through all the contact points, to increase your chances of getting them into the funnel.
Interest.
Once the person already knows that you exist, the next step is the interest. What happens when you start researching your product/service and comparing alternatives.
Imagine that you attracted him through a network campaign, he became interested and came to your website. It is not recommended that you start selling tirelessly. Help him to become better informed; give him tools to take a good decision (next stage); make him feel that you are there to support him in the process.
An example offline You may be a TV salesman at a chain store. When a prospective customer asks something, it’s because he’s looking for help; he is not looking for money to be taken from his pockets at all costs.
Think that it is the perfect opportunity to show your values and business culture.
Decision.
At this stage of the sales funnel, the prospect has several purchase options. That is why it is essential that you have absolutely clear what your value offer is. You offer free shipping, discounts, a longer warranty, after-sales support… What do you do that others don’t? Or what do you do better than others?
This stage is when many businesses communicate with their prospects through different means and tell them why they should choose them. It is very common for them to do push through calls or emails. And in the case of e-commerce, in the suggested products.
Action.
This is when that person who once saw or heard from you becomes your client. This stage is very delicate, because any failure will cause all your effort in each step of the funnel to go to waste.
Put yourself in the position of a user who is buying something online and when he gives click to buy, the page crashes… The frustration is total. You already did the hardest thing which was to make that person choose you. So make sure you make the purchase process absolutely seamless.
Retention or fidelity.
Although it seems that the final objective is the sale, there is one more stage… and that is to make sure that the sale becomes 10.20 and more. You can do this in 2 ways:
- Giving such a good after-sales service that it can bring you referrals.
- Selling you more products.
Call him, ask him how your product/service has gone, ask his opinion and make him feel that he is not a customer; he is a strategic ally.
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Importance of social networks.
By now you know what is a sales funnel, why it is important and what are the stages. But additionally, I would like you to know a little more about how to start “putting” people into your funnel.
Social networks are the right space for many people to waste time… but they are also the space where you show your product/service to those people who are wasting time.
My recommendation is that you invest in advertising. If your budget is not very large, invest a little anyway. Advertising campaigns through social networks give you the opportunity to very well segment the audience that will see your ad. You can also customize in detail where you want the guideline to be seen: Facebook, Instagram, Stories, feed (speaking specifically of the Facebook ad manager).
If it is absolutely impossible for you to invest, the other option is to upload content and hope that potential customers will find you organically. It also works, but what you will not invest in money; you will invest it in time.
Conclution.
The sales funnel is a great ally for all businesses that want to facilitate the conversion of person a customer.
To the extent that you have identified the 5 stages: attraction, interest, decision, action and retention; you will be able to identify failures and find opportunities for improvement. Remember that the goal is to eliminate as much friction in the flow of the funnel.
Think that no child has fun on a slide where it goes down slowly and no person becomes a customer in a funnel where they find problems instead of solutions. We hope this information will be of great help to you 🙂
And remember, if you are really interested in creating your own business, you can read our book “How to create a company while working: Discover how to manage your time, manage your money and motivate yourself while creating a company and working for another” , where you will find all the information you need to found your own company, without having to leave your job.
