What is a Sales Funnel? Let’s try to understand the concept of a sales funnel – the journey a prospect takes from becoming aware of a product to making a purchase decision.
Introduction
Hello everyone! Have you ever heard of a marketing funnel or sales funnel? If not, don’t worry, you’re in the right place. In this article, we’ll explain what a sales funnel is in a relaxed and easy-to-understand way. Who knows, this article could be the start of your journey into marketing!
What Is a Sales Funnel?
A sales funnel is an analogy used to describe a customer’s journey from becoming aware of a product to making a purchase. Imagine it like a funnel – at the top, a lot of people enter, but as you move down, fewer people remain. In the marketing context, the sales funnel helps us understand how to capture customer attention and guide them through each stage until they become loyal customers.
Stages in the Sales Funnel
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Awareness
This is the first stage of the sales funnel. At this point, prospects are just becoming aware of the existence of the product or service we offer. They’ve just found out about our product, service, or brand. For example, they may have seen it on a billboard or noticed it on a store shelf or heard about it from a friend. Or they might have seen an ad on social media.
Here, our goal is to ensure that more people know about our product or service. We can use social media ads, create engaging sales letters, post blogs, or use SEO to capture attention. If the budget allows, a billboard could be an option too. At the very least, putting up banners is a good start. This is the first marketing step we need to take to raise customer awareness.
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Interest
The second stage, “familiarity breeds interest.” Prospects begin to be intrigued by the product or service. They start to show interest. Why are they interested? Perhaps the product solves a problem for them, adds value, meets their needs, or aligns with their preferences.
This stage can be tied to the business model, specifically the Business Model Canvas: Value Proposition.
When people become aware of our product, the next step is to get them interested. This can be achieved by providing informative and useful content. For instance, we can create demo videos, send engaging emails, or hold webinars.
If we are marketing through social media or sales letters, typically the call-to-action will involve clicking to WhatsApp, right? Once they start messaging, it’s a sign that the prospect is interested!
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Consideration
At this stage, the customer starts evaluating and comparing our product with others available on the market. They might do research on similar products. For example, on Shopee or Lazada, they may read other customers’ reviews. Does the product work? Is it worth buying? What about the price? Is there a cheaper option?
So, we need to ensure our product appears more appealing. We can use customer reviews, testimonials, or product demos to convince them. As mentioned earlier, we need to highlight the value of our product compared to others. Offering a lower price is one option, but this is closely related to our business model and marketing strategy.
We should have this information prepared early on. If using WhatsApp, for instance, prospects will likely ask lots of questions, so we should be ready to provide relevant information.
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Intent
After knowing, showing interest, and considering, prospects begin to have the intent to buy. If a customer starts showing intent – for example, by adding our product to their shopping cart or filling out a form – we need to act fast.
Offer them special deals or discounts to encourage them to make a purchase. For example, on Shopee, there might be a seller discount along with free shipping.
In WhatsApp communication, it’s important to recognize buying intent. Sometimes buyers are ready, but if we overload them with irrelevant information, it can turn them off. Striking a balance in the sales closing process is key.
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Purchase
Finally, the customer makes the decision to purchase our product! At this stage, ensure the payment process is smooth and provide good customer support to ensure their satisfaction. In the case of online shopping, make sure the checkout process isn’t too complicated!
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Loyalty
After the customer makes a purchase, don’t stop there. Focus on building a long-term relationship with them. You can create loyalty programs, send regular communications, and offer post-purchase support to keep them as loyal customers.
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Advocacy
If customers are satisfied, they may become loyal advocates for our brand and promote our products to others. Positive reviews and customer referrals like these are incredibly valuable.
Why Is the Sales Funnel Important?
The sales funnel is important because it helps:
- Understand Customer Behavior: By understanding each stage of the funnel, we can tailor marketing strategies to meet customer needs at every step.
- Optimize Resources: We can focus marketing resources on the stages that need more attention. For example, if many customers drop off at the awareness stage, we can work on improving brand recognition.
- Increase Conversion: By optimizing each stage, we can increase the conversion rate from prospects to loyal customers.
Conclusion on What is a Sales Funnel
The sales funnel is a valuable tool for modern marketers. By understanding and using this concept, we can attract more customers, boost sales, and build long-term relationships with customers. So, what are you waiting for? Start your business journey by building a sales funnel today! I hope this article on “What is a Sales Funnel?” is beneficial.
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