The concept of sales funnel is now one of the most popular in the marketing sector, also because it is one of the easiest to make “graphically”. Funnel is not only a metaphor that indicates the path that the customer must complete before moving to the conversion phase, but also much more: choose a sales strategy with a well-built funnel can help you to manage your sales team and improve your business results.
What is a sales funnel
The path that potential customers take when they are interested in a product or service is represented by a sales funnel: the process begins with a large number of interested individuals, which gradually shrinks as they approach the final decision. This funnel includes various steps used by sales teams to convert a simple curious into a customer.
The strategic scheme of the sales funnel should guide every interaction with customers, especially to maximize the conversion of qualified contacts into buyers; in the central part of the funnel, the number of potential customers is reduced, and the process culminates in a deal closed positively or negatively.
As negotiations progress, the chances of success increase: more details are exchanged and the benefits of the product become clearer. If the negotiation doesn’t fail, the chances of a successful conclusion remain high; otherwise, the opportunity is lost.
The advantages of the sales funnel
The sales funnel is a powerful tool to optimize the path that customers follow until they become loyal buyers. First, it facilitates the customer’s journey: although in recent years most transactions have moved online, the issues remain the same. A well-defined funnel helps to identify where customers are in the decision making process, allowing you to offer them what they need, when they need it.
Another great advantage is the ability to rank and prioritize leads: thanks to the data collected, you can determine who is really interested and ready to be contacted by the sales team, allowing you to focus resources on the most promising customers.
Furthermore, having a well-structured funnel means that resources can be allocated more efficiently, for example by deciding to invest more in the creation of content that speaks specifically to each stage of the funnel, thus improving the effectiveness of marketing campaigns.
Funnels also provide more accurate sales volume forecasts, giving a clear indication of how many visits can be turned into purchases; improve the ability to measure and optimize sales strategies: analyzing each stage, weaknesses can be identified and corrected, refining the process for future cycles.
What are the models for a sales funnel
The basic structure of a sales funnel is divided into three main levels: Beginning, Middle and End. At the top of the funnel there is the initial stage dedicated to awareness, where potential customers become aware of the product or service offered. The intermediate phase follows, in which the focus shifts to Consideration and Desire; at this stage, clients evaluate the available options and develop a specific preference. The process culminates in the final stage, the Action, during which customers complete their purchase.
Over the years, a number of funnel models have been developed to offer the most suitable solution for different needs. The first one, and probably the most important one, is the AIDA model, a key tool for analysing the journey a customer takes before purchasing a product.
This process is divided into four distinct phases: Awareness, Interest, Desire and Action. Each layer incorporates sub-layers that can offer additional details of operation, allowing a more effective management of the customer path.
Beginning of the funnel
The beginning of the sales funnel focuses on awareness and interest, two key steps to attracting the attention of potential customers. At the awareness stage, the primary objective is to make the target audience aware of the product or service, for example through targeted advertising campaigns, a strong social media presence and effective SEO techniques to improve visibility on search engines; it is important that messages are not only clear, but also engaging to capture the initial interest of the customer.
Once potential customers are aware of the offer, the next step is the interest phase, in which the initial attraction is deepened by providing detailed information and responding to the specific needs of the customer: use educational content, as blogs, informative videos and online workshops, is very important to further stimulate interest and help customers to assess the value of the offer.
Middle of the funnel
During the middle of the sales funnel, customers come to the assessment and decision stages, key moments in which they are getting closer to buying. In the assessment phase, potential buyers compare available options by seeking precise information on products or services. Distinctive features, benefits and detailed reviews become essential to help customers understand the value of the offer.
Then, the decision stage is entered. At this point, customers already have a good knowledge of the solutions available and are ready to make an informed choice: strategic incentives such as personalized offers, exclusive discounts or free trials can play a decisive role in overcoming any hesitation. At this stage, it is very important to provide responsive and available customer support, able to answer any questions or doubts, consolidating the confidence in the proposed offer.
End of the funnel
The phase that includes action and loyalty is the final of the sales funnel and it is crucial to ensure continuity in customer relationships. During the action, the customer completes the purchase, thanks to an intuitive and direct process: it is here that incentives such as exclusive discounts or special offers can be decisive in encouraging the final decision.
Immediately after the purchase, the main objective becomes loyalty: in this phase, it is essential to establish a constant and meaningful dialogue with the customer through an excellent after-sales service and personalized communications, with, for example, loyalty programmes and exclusive benefits that are effective tools to keep the customer’s interest high and promote further purchases.
Strengthening loyalty not only increases the probability of buying returns, but turns customers into brand supporters who can positively influence word of mouth.
How to create a sales funnel
The rules for the creation of an ideal sales funnel do not exist, being each activity different and with different needs. To simplify the activities, however, it can be useful the adoption of a sales CRM, which can follow you through every stage of the funnel: VTENEXT proposes its own CRM to facilitate the management of relationships and optimize the customer journey in an intuitive way.
Creating an effective sales funnel is a process that begins with the identification of the ideal customer: knowing his profile allows you to develop a sales path where each stage accompanies the customer from interest to purchase. It is essential to understand the preferred buying behaviors and communication channels in order to effectively reach these potential customers.
Once the ideal customer has been defined, it is necessary to personalize each stage of the funnel: this approach ensures that the interaction with the brand meets specific expectations and needs, improving the overall customer experience; active customer involvement is an important part, especially in the final stages.
Attracting leads is just the beginning and to turn them into qualified contacts, you need to nurture these relationships with engaging content, demos, free trials and a solid social media presence.