Sales Funnels Explained – Stages of the funnel

Sales Funnels Explained – Stages of the funnel

Sales Funnel Explained

This Sales Funnel Explained series is for business owners who want to know how to increase leads and customers. There is a method to increasing sales and the SALES FUNNEL provides a framework to achieving that goal. The Sales Funnel Explained series is in 3 parts:

  1. The Stages of the Funnel
  2. The Marketing Tools for each stage of the funnel
  3. The Marketing Messages for each stage of the funnel

 

PART 1: The Stages of the Funnel

In part 1 of the Sales Funnel Explained series I will outline the 3 stages of a basic funnel. Sales Funnels can become complex broken into four, five, six or seven stages. But for those just starting keeping it simple is the best place to start.

What is a Sales Funnel?

A Sales Funnel is a series of steps designed to guide your customers towards a buying decision. This process is where your marketing efforts come in – through ads, emails, website, landing pages and more. The whole purpose of the funnel is to help your customers/visitors achieve their goals or desired outcomes and, at the same time, your business achieving its own.

The 3 Stages of the Funnel

First of all, here’s an overview of the stages of the funnel:

  1. Top of Funnel: the first stage is about building traffic – your aim is to get as many people as possible entering in, becoming aware of your offer.
  2. Middle of Funnel: in the second stage the goal is to build leads – as potentials become more aware of your offer and perhaps make small purchases with you.
  3. Bottom of Funnel: in the third stage you are converting leads into customers – they come out through the bottom making a purchase and becoming a customer.

Typically not everyone makes it all the way through, some people may lose interest along the way and that is fine. The goal is to find those ideal customers who make their way through to the bottom and purchase from you.

Let’s look at each of the stages in more detail…

TOP: Getting People To Know About Your Business & Offer

The Top of the Funnel is about building traffic. We call the people who enter in here a “cold audience”. They’ve probably never heard of you before or done business with you. If we think of the sales funnel process as “strangers” becoming “friends”, this is where we meet strangers (the good kind).

At this point, the potential customers have probably never heard of your business, your products or services you offer, but they are slightly aware of their problem; they have a “want”, a need to be fulfilled, or something that they want to achieve. And YOU have the solution

MIDDLE: Getting Contact Information of New Leads

The Middle of the Funnel is about turning traffic into leads. You are now working with a “warm audience”. Consider this stage as  guiding them from being a “stranger” and becoming an “acquaintance”. The potential customers who have entered your funnel have:

  • started to engage with you;
  • become aware of your business, product, service.
  • started warming up to you.

This is the time to make a small offer that connects their “problem/want” to your product/service. The purpose of this small offer is to get their contact information so you can continue to build a relationship with them in whichever format you prefer to do that (email, phone, mail).

BOTTOM: Getting New Customers

The Bottom of the Funnel is about converting the leads above, into paying customers. Those people who have continued down into the bottom stage of your funnel are now “qualified prospects”. You are now connecting with a “hot audience”. Consider them as a “friend”, as ideally, they have chosen you over the competition and are ready to make a purchase.

That is really a basic outline of the stages of the funnel. In the following posts, we look at the marketing tools and marketing messages that are best used through each stage of the funnel.

The Last Word

Now that you have a basic understanding of what a Sales Funnel is and the different funnel stages, the next step is to discover which marketing tools are best used at each stage of the funnel. I will outline that in part 2 of this series > Sales Funnels Explained – Marketing tools for funnel stages


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