The Sales Funnel & How It Can Help Your Business Grow
If you’re eager to take your business to the next level it might be time to look at your sales funnel, as this will help you identify potential opportunities that you may be missing out on.
Gaining a better understanding of the journey your customers take can help you make vital changes that are necessary for business growth, giving you a competitive advantage over rivals.
What is the sales funnel?
Not familiar with the term ‘sales funnel’? It’s a simple business concept which refers to the buying process that you lead your customers through when they make a purchase.
The sales funnel shows the journey that your customers make, covering several steps and highlighting where your customers are leaving the process. Sales funnels have several different stages and there are more than one visual representations of the concept, showing how the funnel can be adapted to suit each business’ unique customer journey.
Core components of a sales funnel
- Awareness : Your potential customers become aware of your presence. This could be through a marketing campaign, an online search enquiry, or through another method.
- Interest : You’ve captured their interest and now they want to learn more.
- Decision : After successfully gaining interest, your customers are left with a decision, do they act or move on?
- Action : The customer takes action, such as making a purchase directly through your website or giving you a call to place an order.More complex sales funnels can contain different stages but as people progress through the process the number of potential customers falls, leading to the funnel representation.
How to use the sales funnel to boost business
The sales funnel doesn’t just highlight the customer journey, it can be an invaluable source of information too.
- Identify where you’re losing customers : It’s natural to lose potential customers as they progress through the journey but if you’re losing a significant amount at a certain stage it can highlight changes that need to be made. For instance, perhaps your website doesn’t provide enough detailed information on your product or the checkout process is confusing.
- Evaluate your marketing efforts : If your awareness is low it could indicate that it’s time to rethink your marketing strategy. Likewise, losing a large number of potential clients following the awareness stage could suggest that there’s a disconnect between your marketing communications and your brand.
- Implement cost-effective operations : Looking at your sales funnel from the bottom up can help you establish where cost savings can be made and which areas would benefit the most from increased investment.
- Focus on your audience : Do you have a clearly defined target customer in mind? A sales funnel can help you refocus and then measure your success through giving you data to see who is most engaged with your business.