Sales Funnels: A General Overview

Also called a marketing funnel, the sales funnel is a term used to describe the process that potential leads go through from first discovering your company to becoming a paying customer. Sales funnels are important tools because they enable business owners to look at their marketing practices through the eyes of the customer. They identify strengths and weaknesses in the owner’s current marketing and encourage them to evolve to attract their target audience more effectively. 

Stages of the Sales Funnel

It is worth noting that the stages presented here are a general overview of the sales funnel. Your sales funnel may look a little different but as long as you are attracting the right people to your company, then it is doing its job. 

1. Awareness: This stage involves the greatest number of people. Customers have indentified a problem in their lives and are looking for solutions. They come across your company through social media marketing, email campaigns, or some other avenue. 
2. Interaction: There will be less people as they go down the funnel, but these leads are also more likely to make a purchase. The customer does competitive research, or look into what products your competitor offers and weighs their options. 
3. Interest: The customer grows more interested in your company. They may reach out with questions about your product. 
4. Action: The customer decides to purchase your product. 

With each successful purchase, a lead reaches the end of the funnel by becoming a paying customer. However, this doesn’t mean your work is done. Keep your customers invested in your company. A couple ways to do this include staying connected with them on social media and offering discounts through email campaigns. 

Sales Funnel vs. Marketing Flywheel

The marketing flywheel is a similar marketing tool. Though the number and names of sections vary, the “Attract, Engage, Delight” flywheel is the most common:

1. Attract: Companies reach customers through inbound marketing, rather than by conventional means like advertising. 
2. Engage: Customers engage at their own pace while the company stands by, ready to address any questions or concerns they may have. 
3. Delight: Businesses support and delight their customers with their amazing products. 

The marketing flywheel places customers in the center to emphasize how a loyal customers keep the company going strong. Some prefer the marketing flywheel over the sales funnel while other companies still use the latter. Despite their differences, they both have the same goal of attracting people, delighting potential leads, and encouraging them to buy, turning them into paying customers. Experiment with both to see which works best for your business. 

Marketing your business may seem daunting, especially if you are just starting out, but it doesn’t have to be. Empowered Pulse is a consulting firm that assists in digital marketing. Whether you need help with your social media, website development, or online advertising, we will help you on every step of the way. Contact us today to learn more about our services.