Understanding the Sales Funnel: What is it and Why is it Important?

A sales funnel is an important marketing concept that traces the journey a customer goes through when making any type of purchase. Learn more about how it works & its benefits.

Understanding the Sales Funnel: What is it and Why is it Important?

Sales funnel is a marketing concept that traces the journey a customer goes through when making any type of purchase. It is a visual representation of the customer journey, representing the sales process from awareness to action. The model uses a funnel as an analogy, since a large number of potential customers can start at the top of the sales process. A sales funnel consists of several steps, commonly known as the top, center, and bottom of the funnel, although these steps may vary depending on the company's sales model. The “funnel” metaphor means that you'll start with a large audience of potential buyers that will eventually narrow down to a smaller group of highly segmented, high-value customers.

When you start approaching a sale, it's imperative that you make these two points clear to your potential customer. Prospecting and marketing are all the things you do to get people to the first of your sales funnel stages. Sales funnel leakage often occurs if marketers are unable to keep prospects and potential customers engaged with your company and its offerings through relevant and interesting content and outreach. This way, you'll be able to better understand the sales tactics that make your target audience take action. At the peak, social media users learned about the company and its offerings and were caught up in the funnel. By encouraging the customer-oriented and “too good to be true” nature of your sales funnel, you should also minimize the risk your potential customers will have to take when making a purchase.

All of this should go directly to the notes you created during the previous step of the sales funnel hacking process. It's likely that many of your competitors have already created a sales funnel or a marketing funnel, which generates engagement and sales based on the exact type of customer you want to attract with your own funnels. Throughout the previous phase of the sales funnel hacking process, you've most likely only seen 20 to 30% of your competitors' sales funnels. On the contrary, those funnels with gaps will cause potential customers to abandon the sales process, like water flowing through a strainer. But what I want to say is that with a solid platform, I can sell my e-books by creating the first sales channel. The domain name and URL you use for your sales funnel should be representative of your brand and your offering. Finally, but most importantly, landing pages must have a clear call to action that takes the potential customer further down the sales funnel.

Cassandra Paule
Cassandra Paule

Certified social media guru. Hardcore food scholar. Freelance baconaholic. Infuriatingly humble bacon specialist. Subtly charming web aficionado. Certified twitteraholic.

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