How to Build a Sales Funnel - businessnewsdaily.com

Key takeaway: A sales funnel describes where an individual is in their buying journey, whether they've only just become aware of your brand or they are a brand- ... BusinessNewsDailyreceivescompensationfromsomeofthecompanieslistedonthispage.AdvertisingDisclosureHome>GrowYourBusiness>Sales&MarketingWhatisasalesfunnel?Importanceofasalesfunnel4stagesofthesalesfunnelHowtobuildasalesfunnelSalesfunnelFAQsGuidetoBuildingaSalesFunnelDavidGargaroBusinessNewsDailyContributingWriterUpdatedNov19,2021Asalesfunnelcanhelpyoutrackyourleadsastheyprogressclosertobecomingpayingcustomers.Asalesfunnelisatoolusedtotrackleadsastheyprogressfromprospectstocustomers.Byexaminingyoursalesfunnel,youcanoptimizeyoursalesandmarketingefforts.Asalesfunnelconsistsofthreesegments:top,middle,andbottom(orhigh,middle,andlow).Thisarticleisforsmallbusinessesthatwanttoimprovetheirsalesandmarketingstrategies.Whetheryouhaveabrick-and-mortaroronlinebusiness,youneedtocreateasalesfunneltoattractandconvertvisitorsintocustomers.Thekeygoalofyoursalesfunnelistomovepeoplethroughthedifferentstagesofthesalesprocessuntiltheyarereadytobuyyourproductsorservices.Whatisasalesfunnel?Asalesfunneldescribesthestepsanindividualtakesonthewaytobecomingyourcustomer.Itconsistsofthreeparts:Thetopofthefunnelisthemarketingthatattractsprospectstoyourbusiness(e.g.,theadvertisingonyourphysicalstorefront,orthelandingpageofyourwebsite). Themiddleofthefunnelinvolvesallthepartsofyoursalesprocesspriortothesale(e.g.,peopletryingonclothinginyourstore,orwebsitevisitorsreadingaboutthebenefitsofyourproducts). Thebottomofthefunnelisthefinalpurchase(e.g.,customerspayingforclothesatcheckout,orwebsitecustomersenteringtheircreditcardinfotocompleteapurchase).Keytakeaway:Asalesfunneldescribeswhereanindividualisintheirbuyingjourney,whetherthey’veonlyjustbecomeawareofyourbrandortheyareabrand-loyalrepeatcustomer. ImportanceofasalesfunnelThesalesfunnelshowsthepathyourcustomerswilltakeonthewaytopurchasingyourproductorservice.Analyzingyoursalesfunnelwillhelpyouunderstandhowitworksandwhereitdoesnot.Itwillalsohelpyouidentifytheholesinthedifferentstagesofyoursalesfunnel(i.e.,whereprospectsdropoutanddonotconvertintocustomers).Understandingyoursalesfunnelwillhelpyouinfluencehowprospectsmovethroughitandwhethertheyconvertintobuyingcustomers.Itwillalsoprovideinsightintowhatcustomersarethinkinganddoingateachstageofthesalesfunnelsoyoucaninvestinmarketingactivitiesthatattractmoreprospects,developmorerelevantmessagingateachstageofthesalesfunnel,andconvertmoreprospectsintopayingcustomers.Keytakeaway:Solidknowledgeofyoursalesfunnelisessentialforunderstandingyourcustomers’buyingjourneyssoyoucanidentifygapsintheprocessandinvestinthemosteffectivemarketingstrategies. 4stagesofthesalesfunnelProspectswillpassthroughfourstagesofthesalesfunnel,fromwhentheyfirstlearnaboutyourproductorserviceuntiltheypurchase(ordon’tpurchase)yourproductorservice.Thefourstagesrepresentaprospect’smindset,andeachstagerequiresyoutotakeadifferentapproachwithyourmessaging.YoucanrememberthefourstagesusingtheacronymAIDA:AwarenessInterestDecisionActionAwarenessThefirststageofthesalesfunnelisawareness.Thisiswhenapersonfirstbecomesawareofyourproductorservice.Theymightdevelopthisawarenessfromencounteringyouradvertising,learningaboutyourbrandonsocialmedia,orhearingfeedbackfromfriendsorfamily.Or,aprospectmighthavefoundoutaboutyourbusinessbydoingaGooglesearchthatbroughtupyourcompany’swebsite,seeingoneofyourads,orreadingyourblog.Ifthetimingisright,theprospectmightbecomeacustomerbyclickingalinkandbuyingyourproduct.However,itismorelikelythatyouwillhavetoconvincetheprospecttovisityourstoreorwebsite,orcontactyoubyphoneoremail,toengagewithyourbusiness.InterestThesecondstageofthesalesfunnelisinterest.Atthispoint,theprospecthaslearnedaboutyourcompany,yourbrand,andyourproductsorservices,andtheyhavedecidedtoevaluateitbasedontheirlevelofinterest. Atthisstage,youshouldpublishgreatcontentthatinformsandeducatestheprospectbutdoesnotovertlyselltothem.Ifyoubecometoopushyoraggressivewithyoursalesapproachduringthisstage,youcouldturnofftheprospectandcompelthemtoleave.Yourcontentshoulddemonstrateyourexpertiseandhelptheprospectmakeaninformeddecision.DecisionThethirdstageofthesalesfunnelisdecision.Now,thecustomerisreadytobuyandmaybeconsideringseveraloptionsbeforemakingthepurchase.Thisiswhentheywillbecomparingpricing,packages,andotherfactorstofindthebestoptionforthem.Atthisstage,youshouldmakeyourbestoffer.Forexample,youmightprovidefreeshipping,adiscountcode,orabonusproductwhentheyplacetheirorder.Thekeyistomaketheofferirresistiblesotheprospectwillwanttomoveforwardandchooseyouroffer.Yourcontentcancompeltheprospecttomakeadecision.Salespages,webinars,orphoneconversationscouldhelpturntheprospectintoacustomer.ActionThefinalstageofthesalesfunnelisaction.Theprospectbecomesacustomerbypurchasingyourproductorservice(ortheydecidetoleavewithoutmakingapurchase).Ifthecustomermakesapurchase,theyarenowpartofyourcompany’secosystem.Althoughthesaleiscomplete,theprocessneverends.Yourgoalistofocusoncustomerretentionsothecustomermakesongoingorfuturepurchases.Yourcontentshouldhelptobuildcustomerloyalty.Forexample,thankthecustomerforthepurchase,askthemtoprovidefeedback,offerafter-purchasesupport,invitethemtosignupforyournewsletter,orenrolltheminarewardsprogram.Keytakeaway:Thefourstagesofthesalesfunnelareawareness,interest,decision,andaction.Usethesestagestooptimizeyoursalesfunnelandcompelleadstobecomecustomers. HowtobuildasalesfunnelCreatingasalesfunnelisessentialformovingprospectsfrominitialcontacttothefinalsale.Youcanthentrackthelevelofbehaviorandengagementateachstagetoseewheretheprospectisinthesalesfunnelanddeterminehowwellitisworking.Therearemanywaystocreateasalesfunnel,anddifferentbusinessesandindustrieshavetheirowntypesofsalesfunnels.Followthesestepstocreateasalesfunnelforyourbusiness:1.Createalandingpage.Thelandingpageisoftenthefirstopportunityforaprospecttolearnaboutyourbusinessanditsproductsandservices.Userswillarriveatyourlandingpageindifferentways;theymightclickanadorlinkonasocialmediapage,downloadane-book,orsignupforawebinar.Yourlandingpageshouldclearlydescribeyourcompanyandtheuniquebenefitsofyourproductorservice.Thelandingpagemightbeyouronlyopportunitytoimpressprospects,sothecopyshouldbestrongandcompelling.Itshouldalsoincludeawaytocapturetheprospect’scontactinformationsoyoucancontinuetocommunicateyourvaluetothem.2. Offersomethingvaluable.Foraprospecttoprovidetheiremailaddress,youmustgivethemsomethinginreturn.Forexample,youmightofferafreee-bookorwhitepaperwithusefulandinformativecontent.3.Nurturetheprospect.Nowthattheprospecthasshownenoughinteresttoprovidetheiremailaddress,nurturetheprospectwithcontentthateducatesthemaboutyourproductorservice.You’llwanttostayintouchwiththemregularly(onceortwiceaweek)butnotsofrequentlythattheygetboredorturnedoffbyallthecontent.Makesurethecontentaddressestheirkeyneedsandovercomesanypotentialobjections.4.Closethedeal.Makeyourbestoffer–onethatisdifficultfortheprospecttoignoreorturndown–toclosethedeal.Forexample,youcouldprovideaproductdemonstration,afreetrial,oraspecialdiscountcode.5.Keeptheprocessgoing.Atthispointinthesalesfunnel,theprospecthaseitherbecomeacustomerordecidednottomakethepurchase.Ineithercase,youshouldcontinuethecommunicationandrelationship-buildingprocess.Iftheprospectbecomesacustomer,continuetobuildtherelationshipbyeducatingthemaboutyourproductsorservices,engagingthemregularlytobuildloyalty,andofferingthemgreatservicetoretainthemasvaluedcustomers.Iftheprospectdoesnotmakeapurchase,stayintouchwiththemthroughregularemails.Continuetoworkonconvertingthemintocustomersbyusingdifferentemailnurturingseries.6.Optimizeyoursalesfunnel.Eventhoughyou’vecreatedasalesfunnel,yourworkisneverdone.Youshouldcontinuallylookforwaystoimproveandoptimizeyoursalesfunnel,anddeterminewhereyouarelosingprospects.Focusontheareaswhereprospectsmovefromonestageofthesalesfunneltothenext.Beginatthetopofthefunnel.Evaluatehowwelleachpieceofcontentisdoing.Areyoucapturingenoughprospectswithyourinitialcontent?Thegoalofyourcontentistogetprospectstoclickthecalltoaction(CTA).Iftheyarenotdoingthat,oronepieceofcontentisgettingfewerclicksontheCTA,thenreworkthatelementortrysomethingnew.Evaluateyourlandingpage.YourofferandCTAshouldmirrorthecontent(e.g.,blogpost,Facebookad)thatbroughttheprospecttoyourlandingpage.Areprospectstrustingyouwiththeircontactinformation?Testeverypartofyourlandingpage(e.g.,headline,images,bodycopy,CTA)tofindoutwhatisworkingandwhatisnot.Testeveryofferintheactionstageofyoursalesfunnel.Comparetheresultsofdifferentoffers(e.g.,freeshippingversusdiscounts).Howmanypurchasesareyougettingwithyouremailnurturingcampaignsandothermarketingefforts?Ifoneoffergetsmuchbetterresultsthananother,focusonusingthatoffertocloseprospectsandseeifyoucanimproveuponit.Trackyourcustomerretentionrates.Determinehowoftencustomersreturntopurchaseyourproductsorservices.Docustomerscomebackmorethanonce,andaretheybuyingotherproductsorservices?Keeptrackofhowoftentheyreferotherstoyourcompany.Keytakeaway:Togeneratesalesfunnelleads,createalandingpageandusedigitalcontenttodriveuserstoyourwebsite.Then,capturetheircontactinformationtocontinuallymarkettothemthroughouttheirbuyingjourney. SalesfunnelFAQsHowisasalesfunneldifferentfromamarketingfunnel?Thesalesfunnelbeginsattheendofthemarketingfunnel.Themarketingfunnelbuildsprospects’interestinyourbrand,guidingthemfromtheirfirstinteractiontothepointwheretheyhavesomeinterestinlearningmoreaboutyourproductsorservices.Themarketingfunnelalsohelpswithgeneratingandnurturingleads.Oncetheprospectisawareofyourbrand,theyexitthemarketingfunnelandenterthesalesfunnel.Whatisthedifferencebetweenasalespipelineandasalesfunnel?Asalespipelineisasequenceofstepsforturningaprospectfromaleadintoacustomer.Theprospectmovesthrougheachstepuntiltheymakeapurchaseandbecomeacustomer.Thesalespipelineandthesalesfunnelhavethesamestages,buttheyarerepresenteddifferently.Thesalespipelineexplainsthevalue,quantity,andstageofdifferentopendealsatagiventime,whilethesalesfunnelhelpssalesteamsunderstandthetotalnumberofdealsandwhatpercentageofthosedealshavepassedthrougheachstageofthesalesprocess.Whatisasalesfunnelmanager?Asalesfunnelmanagerhelpswithoverseeingthecustomerjourney,fromattentiontoaction,aswellasidentifyingandclosinganyleaksinthesalesfunnel.Customerrelationshipmanagement(CRM)softwareautomatesandstreamlinestheprocessofmanagingthesalesfunnel,includingqualifyingleads,trackingprospects’activityateachstageofthebuyerjourney,andfollowingupautomaticallywhenthetimeisright.CRMsoftwarecanalsohelptodefinethesalesprocess,identifyleaksinthesalesfunnel,andstreamlinetheconversionprocesssoprospectsreachthebottomofthesalesfunnel. ImageCredit:Jovanmandic/GettyImages DavidGargaroBusinessNewsDailyContributingWriterDavidGargaroisacontentwriterandcopyeditorwithmorethan20yearsofexperienceinmultipleindustries,includingpublishing,advertising,marketing,finance,andsmallbusiness.HehaswrittenonB2B-focusedtopicscoveringbusinesstechnology,sales,marketing,andinsurance.DavidhasaBachelorofArtsdegreeinEnglishandActuarialSciencefromtheUniversityofToronto.Heservedasthemanagingeditorofasmallpublishingcompany,andself-publishedabookcalledHowtoRunYourCompany…IntotheGround.RelatedArticlesSeeMoreRelatedArticlesHowtoDevelopaCalltoAction(WithExamples)HowCRMWorksintheSalesFunnelMarketingAutomationBuyer'sGuideHowtoBuildandGrowaSalesPipelineHowtoDevelopSuccessfulEmailDripCampaigns7Lead-NurturingStrategiesCRMvs.MarketingAutomation:What'stheDifference?MoreRelatedArticlesRelatedReviewsSeeMoreRelatedReviewsBestCRMSoftwareof2022We'veexaminedthebestcustomerrelationship...BestGPSFleetTrackingSoftwareandSystemsfor2022LearnaboutthebestGPSfleettrackingserviceson...TheBestRemotePCAccessSoftwareof2022Wereviewedthetopremoteaccesssoftwareproviders...MoreRelatedReviewsGrowYourBusinessSeeMore>Updated02.14.22HowtoBuildanEmailMarketingContactListLearnexperttipsonhowtoefficientlybuildyouremailmarketing...Updated11.19.2111BenefitsofCRMSystemsCRMsoftwarecanprovideawealthofbenefitsforyoursmall...Updated11.19.21AGuidetoManagingCustomerRelationshipsManagingcustomerrelationshipsiscriticaltoretentionand...Updated01.25.22HowtoCreateaLandingPageThatConvertsLandingpagesofferyouraudiencerelevantinformationandserve...Updated02.25.22FacebookforBusiness:EverythingYouNeedtoKnowFacebookisapowerfultoolforsmallbusinesses.Learnhowtouse...info@businessnewsdaily.com2005thAvenue,2ndFloorWaltham,MA02451©2022business.comAllRightsReserved.ResourcesHowtoStartaBusinessHowtoMarketYourBusinessHowtoHireForYourBusinessLatestSiteMapOurCompanyAboutUsAdvertiseWithUsPrivacyPolicyDoNotSellMyPersonalInformationTermsofUseAccessibilityCopyrightPolicyAdvertisingDisclosureOurBrandsBusiness.comBuyerZoneContactUsinfo@businessnewsdaily.com2005thAvenue,2ndFloorWaltham,MA02451©2022business.comAllRightsReserved.