What is a Sales Funnel and How Does it Work?

A sales funnel is a process that potential customers go through to become customers. It's a marketing term for the journey potential customers take when they go to buy. The funnel consists of several steps, commonly known as the top, center, and bottom of the funnel, which vary depending on the company's sales model. The main purpose of the funnel is to get people to go through the different stages of the sales process until they're ready to buy.

Prospecting and marketing are all the activities you do to get people to the first stage of your sales funnel. This stage is known as the “knowledge level”, because it is where people first become aware of your product or service. A well-planned sales funnel will define the actions your company must take to take potential customers to the next stage. Achieving revenue and other sales goals can be done by using sample sales plans to create your strategic roadmap.

An effective sales process and funnel will filter out the wrong leads so you can focus your sales and marketing efforts on the most qualified ones. A well-managed sales funnel makes all your sales efforts well organized and gives you more control over your sales results. Once you know the stages of the sales funnel, it's time to figure out where you're losing potential customers. One of the main advantages of having a sales funnel is delivering the perfect message just when your potential customer needs it.

To get the most out of your sales funnel, it's important to monitor and track some key metrics of your funnel.