There is nothing more important in business than understanding how a customer makes a purchasing decision. Each step - from the first contact to the closing of the deal - can be presented in the form of a logical structure that helps the business manage the sales process and predict results. It is this structure that is called the sales funnel.
More about what is a sales funnel, how it works and why without it it is impossible to build effective marketing, says the men's online magazine Churchill.kz.
What is a sales funnel
A sales funnel is a model that describes a potential customer’s path from the first interaction with a brand to the moment of purchase. At each stage, the audience decreases: out of hundreds of interested users, only a small part become real buyers.
The classic funnel includes several stages:
- Attracting attention. The client learns about the company through advertising, social networks, SEO or recommendations.
- Interest. The visitor studies the product, reads reviews, compares offers.
- Consideration At this stage, the client evaluates the benefits and decides whether to trust the company.
- Purchase. The final step, when a person completes the target action - makes an order or subscription.
This division allows a business to analyze the effectiveness of work at each level and understand where potential customers are lost.
Why a funnel is important for business
Portal Churchill.kz notes that a sales funnel is not just a theory, but a profit management tool. She helps:
- identify weaknesses in marketing;
- build a communication strategy with the client;
- forecast income and plan resources;
- evaluate the effectiveness of advertising channels.
For example, if a company sees that 80% of users leave after the “interest” stage, then it needs to improve the presentation of the product, add reviews, or make the benefits clearer.
Types of sales funnels
There are several types of funnels depending on the field of activity and business goals:
- Classic (linear) - suitable for retail, when the client goes through a standard path from advertising to purchase.
- Multi-level - used in the b2b segment, where the decision on a transaction is made by several persons.
- Automated - used in online marketing, where communication with the client occurs through e-mail, chat bots and CRM systems.
- Retention Funnel - focuses on customer retention and increasing LTV (lifetime value
