What is a sales funnel and why is it needed?

What is a sales funnel?
The sales funnel describes the path that a customer takes from the moment that a product attracts attention to the moment of purchase. The main value of building a funnel is that you segment buyers who have similar pain, interests and behaviors.
The sales funnel consists of stages through which you need to lead the customer to make a purchase. First you need to attract attention with advertising. At the next stages – to convince to buy the goods, and the last stage – making a purchase. Each stage uses its own mechanics to retain the customer.

Example of a five-level sales funnel

First stage: Target group definition and development of marketing activities plan, taking into account the peculiarities of the audience. At the beginning of the process you need to draw attention to your product or service. The most popular type of “first touch” is setting targeted or Google advertising.

Step two: At this stage you need to find out who is really interested in your proposal. For example, users who have passed on the ad to your site and left a request. These are already your target leads.

Third Stage: First visit or call, customer needs analysis, needs analysis, customer assessment, product or service presentation. Starting from this third stage you can connect to the Smart-operator.Professional presentation of your company – will greatly increase the conversion in the subsequent stages of the funnel.

Fourth stage: Concrete proposal, negotiation and handling of objections. Depending on the industry and target audience, you should use different sales strategies: for example, price will be the deciding factor for one audience, service level and warranty for another.

Fifth stage: Agreement of the details of cooperation with the client and conclusion of the contract or quick transaction. At the last stage you have finally sold products or services and now the main task is to stimulate re-purchase and build loyalty.

Why is it important to build a funnel?

In a broader application, the funnel helps to assess the effectiveness of marketing and sales, as well as to properly build communication with consumers to improve performance.
To begin with, you need to understand the pain and needs of potential buyers to determine what and when will be able to encourage them to buy.

Do not miss the opportunity to increase your sales and increase business efficiency! Our team of SmartProvide experts will be able to consult and develop a scaling plan in your niche.

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