Sales funnels, also known as sales processes or revenue funnels, are the processes in which a company or a seller leads his customer to buy the product. As the name suggests, the process of sales is like an actual funnel. In the starting stage of a funnel, the number of targeted buyers is higher, but in the end, you only sell your product to a few people. In other words, sales funnel is a process in which you spread awareness about your product to buyers, some of them get interested and then a few of them buy your product. This sounds simple enough but read on to learn about the different parts of a sales funnel.
STAGES OF SALES FUNNEL
A sales funnel consists of five stages and as mentioned earlier, it is just like a normal funnel. The number of targeted buyers will keep decreasing as you progress in stages. The stages of the sales funnel are:
1. THE AWARENESS STAGE
You’ve probably heard the quote: “Create a problem then sell the solution.” The awareness stage fits perfectly with this quote. In the awareness stage, suppose your customer is facing a problem and trying to find a better solution for it. Your customer might try to contact your customer services department. This customer can then grow into a lead. As the number of leads increases, the more chances are there for better profits. Since the awareness stage is about being aware of the problem your lead has. As a seller, you need to make him aware of the solution you can provide. You must explain to your leads or potential customers about the possible solutions. The better you explain, the more customers relate to you.
2. THE INTEREST STAGE
After you explained the solution you offer to your potential customer, the time is here to convert this solution into a sellable product. Advertise this product and create interest among the buyers. The better you advertise your product or service; the more buyers get interested. Remember, you are not the only solution provider to the potential customer. There may be other similar solutions from your competition. You may lose your lead if your marketing skills are not up to par. Explain and give the best solution to the problem for customer using the best marketing skills that you have.
3. THE DECISION STAGE
When you finally succeed in leading the prospect to your product and his interest has led him to decide that he will buy your product, then the decision stage starts. In this stage, your customer has already decided that he will buy your product. He will negotiate with you in terms of price. Negotiate with your customer to reach a final decision. Give the best possible selling price to your customer to make him your permanent customer. After the decision stage, comes the purchase stage.
4. THE PURCHASE STAGE
Imagine your number of targeted prospects were in the hundreds in the first stage. Then, fifty of them showed some interest and moved into the second stage. Only twenty-five of them were able to finalize their decision to buy your product and now in this stage, they will finally complete their purchase. Remember, if a customer has made his decision to buy your product and negotiated the price with you, then the odds increase that he will go through with the purchase. So, the number of leads in the decision stage and the number of leads in the purchase stage are similar. In this stage, you finally sell your product to your customer and reap the rewards from it.
5. THE REPEAT CUSTOMER STAGE
In this stage, all you need to do is to turn your first-time customers into your permanent customers. Make sure that you are the only one for them to buy your specific products or services. In addition to making them permanent customers in this stage, you need to repeat the wholesale funnel process to attract more possible customers and sell them your product. One way to be more successful in this stage is to maintain the quality of your product. If the buyer enjoys the product you sold, he will surely come back, and it is possible that he might bring other potential customers for you and you can repeat the sale funnel process with them.
WHY ARE SALES FUNNELS IMPORTANT?
Creating a sales funnel is quite beneficial for your business for many reasons. When you are using sales funnels, you can find out which stage your marketing problems occur. For example, if you have a website, you can find out which page your visitors left and never came back. Here are some other reasons that sales funnels are so important for your business.
- They create a method to filter out the serious from the not-so-serious buyers of your product.
- Sales funnels can predict the volume of your earnings, making it possible to figure out the number of customers you can get.
- As mentioned before, sales funnels can help you find out the actual stage where the marketing problem occurs. You can act on this knowledge and improve your marketing strategy.
- By creating a sales funnel, you can optimize your overall profit. You can also increase the number of repeat customers of yours.
- Once you understand the sales funnel that you have created, all you need to do is to follow the steps again and again to get more and more customers.
- Sales funnels will also allow sellers to create an environment of good customer care which is healthy for their business.
- Once you understand the sales funnel, you can minimize the number of hours put into making it all work as it should. Because of this, you can save a lot of money and time.
In summary, sales funnels are a way to filter out potential customers. The stages of sales funnels are awareness, interest, decision, purchase, and repeat. Sales funnels are highly beneficial for any business by creating a highly effective way to aid in the growth of your business. In the sales funnel process, you will find more about your real customers. All you need to do is to follow the steps and the customers will come.