What is a sales funnel and why would you need to use one? If you have a company, then your goal is to make money. The sales funnel is what some companies have put together to try to turn potential customers into paying ones.
A sales funnel is where you try to get as many people as possible into the top of the funnel, and then guide them through it until they are a paying customer. On their way through the funnel, they have to be dealt with a certain way so they can make it to the next step. With this kind of a system, you start by trying to get as many people as possible into the funnel. Then, as you work with those potential customers, some will not go all the way through but those that do will be a perfect fit with your company.
What is a sales funnel like? Here’s an example of a funnel that has 5 steps.
Step 1 – Marketing/Awareness
This is the start of your funnel and where you can get a lot of people started in the process. The goal here is to get as many people as possible to notice your company and then to try and get them to the next step.
Step 2 – Getting People Interested
Try to get your customers to do some research to show them why they need your product or service. You can lead the way, or you can let them do the research on their own so they know you’re not jut making up information to try to make a sale.
Step 3 – Evaluation Phase
Now, at the next step, people are going to need to think about whether you are better than the competition or not. If you lose customers at this step, then it’s time to step your game up and offer something that makes you stand out from the crowd. Better pricing or customer service, for instance, are good ways to do so.
Step 4 – Decision Making Phase
Once someone has decided to work with your company, you can then work with them on making a purchasing decision. You probably have quite a few options like what color a product is or what kind of subscription plan someone can get. This is important to explain to the person carefully so that it paints your company in a good light.
Step 5 – Repurchase Or Reevaluate
In some sales models, there are different plans that you have to pay for on a yearly or monthly basis. You may need to work with a client on this to keep them as a customer, and that’s why it’s good to sometimes come up with more options to offer people. They may have not wanted to continue, but since you offered a new subscription plan it now is a good idea for them not to cancel.
There are all kinds of sales processes that work for one company or another. These steps were just an example of what a sales funnel is so that you can see how it is useful. Your company needs to have everything set up so that you don’t lose customers. If one step fails, then all of the other steps were a waste of time!
So what is a sales funnel and why is it useful? That should be clear to you now and it can help you make more sales. It can take time to get it to work and to create a system, but once you do it will pay off!