For the uninitiated, a sales funnel is your customers’ journey towards buying your product or service. The sales funnel (also known as a revenue funnel or sales process) refers to the buying process that companies lead customers through when purchasing products. The definition also refers to how a company finds, qualifies, and sells its products to buyers. Knowing where a customer is in the journey is necessary to respond to customer needs. Sales teams often engage customers as if they are in the purchase stage, posing a problem for many companies.
The buyer’s journey can be broken down into four stages:
1. The Awareness Phase
In the awareness phase, customers are exploring and beginning to define their problems. Since most potential customers are in this phase, it is essential to design processes that create more awareness of problems and the solutions brought to bear on them. In the awareness phase, it is unwise to mention your products. It is a definite faux pas to attempt to sell at this stage; it says to your customers that you do not care to understand them.
2. The Evaluation Phase
At this stage, potential customers understand their problems and potential solutions to start considering your product or service. This is where you can provide some information about the product and offer a free demo. Including successful case studies and testimonials can also help direct them towards the purchase stage. Here is where your product should shine and show customers just what it can do for them.
3. The Purchase Phase
The third stage of the funnel is the purchase phase. This stage is when your sales team can start approaching the leads and pitch your product or service. Potential customers who have reached this stage have a better understanding of their concerns and know how your product specifically can help them.
4. The Delight Phase
The delight phase is the final phase of the journey. The work does not stop after a lead has been converted into a customer. This is the stage in which you need to demonstrate your commitment. Increased customer retention boosts profits, and happy customers make your job more comfortable when it comes to up-selling and cross-selling. In the delight stage, provide engaging content and nurture the human to ensure customer success.