So many clients and social media connections are confused about what a sales funnel really is. Yes, there is a big buzz these days due to the rise of applications like the amazing Clickfunnels but I always say that it is a great strategy to come back to basics and start from there.
The core definition of a sales funnel (which is also known as a revenue-generating funnel or the actual mapping of a sales process) refers to the very important buying process that businesses lead their customers through when they purchase products or services. It is a process starting with the moment when a lead is generated and is a reflection of the customer journey leading to repeated sales. Of course, not all leads will become customers, some will never buy, others may buy later and there will be few which will buy a lot and become raving fans.
A sales funnel is a process and it is backed by science and is divided into several steps, which are different depending on the particular sales model. One common encountered sales process has seven parts:
Awareness — in this phase the prospects become aware of the existence of a solution but are not actively looking for it.
Interest — in this phase the prospects demonstrate their interest in a product by performing product research.
Assessment — in this phase the prospects in B2C or prospect companies in B2B examine competitors’ solutions to evaluate which road to take in going towards a final buying decision.
Decision— in this phase a final decision is reached and it is started the buying process which is transactional (it can be automated — purchase in shop and online) or consultative (in this case a negotiation or intermediary discussion o meeting is needed before the sale is concluded.
Purchase — in this phase, goods or services are finally purchased :).
Reevaluation — in B2B sales it’s common for offerings to involve contracts that need to be renewed. As a client company becomes familiar with an offering, and especially as a contract approach its deadline, a customer will enter a reevaluation phase during which they’ll decide whether or not to renew their contract.
Repeated purchase — in which a customer repurchases a product or service.
So many entrepreneurs I consult with want to learn how to build their own funnels — as it is a top skill which is very important both for startups and established companies so you can join me for a 30 days challenge to build your first or next wildly successful funnel. Because, literally you could be just One Funnel Away!