Contents
- What is a sales funnel
- History of the sales funnel
- Why the sales funnel is important
- Examples of the sales funnel
- Conclusion
What is a sales funnel
The sales funnel represents the journey a customer takes from the first encounter with a product to the moment of purchase. Imagine this scenario: you come across an advertisement banner on Yandex that catches your attention and prompts you to click the link. After studying the information about the courses, you decide to enroll and submit an application. After communicating with the manager, your desire to learn strengthened, and you made the payment. Thus, you successfully passed through the sales funnel.
However, it is essential to remember that not everyone who sees the advertisement will click the link, and moreover, not every visitor to the website will submit an application. The funnel narrows towards the end, which is the reason for its name.
History of the sales funnel
The concept of stages of interaction with the customer on the way to a sale was discussed as early as 1911, but it was only in 1959 that these stages were presented in the form of a funnel. Arthur Peterson, in his book "Sales in Pharmacy, 'Detailing' and Sales Training," illustrated the sales funnel, highlighting four key stages based on the well-known AIDA model: Attention, Interest, Desire, and Action.
Why the sales funnel is important
The sales funnel is an essential tool for anyone involved in sales. However, inexperienced entrepreneurs often lack a clear understanding of each stage of the funnel, do not track key performance indicators, and do not know how to manage these processes to improve results. At the same time, successful companies utilize the funnel to enhance their sales effectiveness.
The primary task of the sales funnel is to make the sales process more transparent and manageable. This not only allows for increased revenue but also helps identify problem areas, assess the effectiveness of managers and advertising channels, and create more realistic sales plans.
Examples of the sales funnel
It is important to understand that you should not narrow the funnel too early. For example, if you use the model "advertisement — course page — sale," it is quite possible that you will get zero sales. Often, before making a purchase, potential customers research the training center or instructors, read blogs, subscribe to newsletters, and participate in free events like webinars. These stages are also part of the funnel, and only after this can they decide to purchase the full course.
Customers often need to "touch" the product before buying. For instance, when buying clothes, this is quite simple: you can go to the store, feel, and try on the items. In the case of online stores, there is also the option to evaluate the product upon receipt. Similarly, before purchasing courses, it is important for potential customers to familiarize themselves with the instructors and course content, emphasizing the importance of including audience warming stages in your sales funnel.
Conclusion
Thus, the sales funnel is an integral part of any business strategy, allowing companies to not only track the customer journey but also optimize the sales process. Understanding each stage of the funnel and knowing how to manage it is the key to successful business.