Sales Funnel Marketing – A Simple Guide For Busy People (With Examples)

Introduction

A sales funnel is a plan that shows a series of steps a person needs to take when they first hear about your brand/product until they decide to become a paying customer. It is called a “funnel” because, like a conventional funnel, it starts wide and narrower as potential customers move through the different stages. The goal is to end up with a smaller group of people who make a purchase and become paying customers. The sale funnel ultimately is a way to guide potential customers to become loyal customers.

The sales funnel strategy started in the early 1900s when advertisers first began to understand the importance of reaching potential customers at different stages of the buying process. In the 1920s, the sales funnel as we know it today began to take shape.

One of the modern sales funnels pioneers was E. St. Elmo Lewis, a former advertising executive credited with developing the AIDA model (Attention, Interest, Desire, Action) in 1898. This model outlined a potential customer’s four stages before purchasing:

• Getting their attention.
• Capturing their interest.
• Building desire for your product or service.
• Ultimately motivating them to take action.

In 1924, William W. Townsend published a book called “Bond Salesmanship,” He outlined the six stages of the sales process: prospecting, approach, presentation, close, follow-up, and service.

Over the years, the sales funnel has adapted to various changes in technology and consumer behavior. In this day and age, the sales funnel has become more complex. Before purchasing, potential customers now interact with brands across various channels (such as social media, email, and online advertising).

Today, the sales funnel remains a cornerstone of a good marketing strategy for small and large businesses. By understanding all stages of the funnel and implementing effective strategies for each stage, businesses can increase their chances of selling and building customer relationships.

Sales Funnel Stages

Stage 1: Awareness

The first stage of sales funnel awareness. This is where potential customers first become aware of your brand and products/services. Maybe they saw a social media post or online ad, stumbled across your website, or heard about you through word of mouth. This is your chance to make an excellent first impression and nature them along the funnel to the next stage.

Examples of how you to maximize the awareness stage

1. Using social media ads: Paid social media ads are a great way to increase your brand’s visibility and reach new potential customers.
2. Hosting a free webinar: A free webinar on a related industry is a great way to showcase your expertise and get your name out there.
3. Attend networking events: Attending industry events and networking with other professionals can help you establish yourself as a thought leader and make new connections.
4. Offer referral incentives: Encourage your current customers to spread the word about your business by offering referral incentives.
5. Collaborate with influencers: Partnering with influencers or other businesses in your industry can help you tap into their audiences and expand your reach.

Stage 2: Interest

Once potential customers know your brand/product, you must capture their interest and establish a relationship with them. By showing potential customers what sets your business apart from your competitors. Share your values, your mission, and your story. Build trust by offering valuable content and engaging with your audience.

Examples of how you can maximize the interest stage

1. Create a “lead magnet”: Offer a free resource like an ebook, white paper, or guide in exchange for potential customers’ contact information.
2. Start a blog: Blogging regularly about topics related to your industry can help you establish yourself as an authority and gain customers.
3. Email marketing: Sending out regular newsletters or promotional emails to keep potential customers engaged and interested in your business.
4. Host a podcast: Starting a podcast on a related industry-related topic can help you reach new audiences and showcase your expertise.
5. Offer free samples or trials: Giving potential customers a chance to try your product or service for free can help them get a feel for your offer.

Stage 3: Consideration

At this stage, potential customers actively consider purchasing your business. They are weighing their options and doing their research. Here you can show your expertise and provide information to help them make an informed decision.

Examples of how you can maximize the consideration stage

1. Create comparison guides: Create comparison guides that compare your products or services to your competitors’ offerings.
2. Use retargeting ads: Retargeting ads showing potential customers products or services they’ve viewed before can help keep your business in mind.
3. Provide demos or consultations: Free demos or talks can help potential customers better understand your offer and make an informed decision.
4. Create case studies: Case studies highlighting your past customers’ success can help build credibility and showcase the value of your products or services.
5. Host webinars: Hosting webinars on topics related to your industry can help educate potential customers and position your

Stage 4: Intent

The intent stage focuses on potential customers’ actions to indicate their intention to purchase. They may add items to their cart, sign up for a free trial, or request a quote. This stage is more detailed than the consideration stage.

Examples of how you can maximize the intent stage

1. Use retargeting ads: They remind potential customers of items they have added to their cart and can help incentivize them to complete their purchases.
2. Offer limited-time discounts: Offering discounts for a limited time can create a sense of urgency and motivate potential customers to purchase.
3. Create abandoned cart emails: Sending automated emails to potential customers who’ve left items in their cart can remind them to complete their purchase and even offer a special discount.
4. Simplify the checkout process: Streamlining the process can make it easy and hassle-free for potential customers to purchase.
5. Send personalized emails: Sending personalized emails that address potential customers by name and recommend products or services based on their interests can help build a stronger relationship and increase the chances of making a sale.

Stage 5: Evaluation

At this stage, potential customers evaluate all the options and decide whether to purchase. They want proof that your product or service is their best option. The focus here is on building trust and credibility.

Examples of how you can maximize the evaluation stage

1. Create customer reviews and testimonials: Showing positive reviews and testimonials from existing “happy” customers can help build trust and credibility.
2. Use social proof: Displaying social proof, like the number of customers you have served or the number of products sold, can help establish your business as a reputable and trustworthy option.
3. Provide case studies: Case studies that demonstrate the success of your past customers can provide concrete evidence of the value of your products or services.
4. Offer a money-back guarantee: Offering a money-back guarantee can help potential customers’ fears and show that you stand behind your products or services.
5. Display trust badges: Displaying trust badges like SSL certificates or security seals can help reassure potential customers that your website is safe and secure.

Stage 6: Purchase

The final sales stage funnels the purchase stage, where potential customers become paying customers. Ensure the buying experience is seamless and hassle-free, and follow up with a thank you email or personalized message to show appreciation.

Examples of how you can maximize the purchase stage

1. Provide various online payment options: Offering various payment methods like credit cards, PayPal, and Apple Pay can make it convenient for customers to purchase.
2. Simplify the checkout process: Streamlining the process can make it easy and hassle-free for customers to purchase.
3. Offer free shipping: Offering free shipping can incentivize customers to make a purchase and even increase the value of their order.
4. Provide order updates: Sending automated order updates can keep customers informed and engaged throughout the shipping and delivery process.
5. Follow up with a thank you email: A personalized email can show customers that you appreciate their business and encourage them to purchase repeatedly.

Stage 7: Retention

This stage focuses on keeping customers engaged and satisfied after the purchase to encourage repeat business and referrals. Retaining existing customers is much easier than acquiring new ones.

Examples of how you can maximize the retention stage

1. Send personalized follow-up emails: Sending personalized follow-up emails or messages can show customers that you care about
2. Offer loyalty programs: A loyalty program can incentivize customers to repeat purchases and refer their friends and family.
3. Provide excellent customer service: It helps build a solid relationship with and satisfy your customers.
4. Send regular newsletters: Regular newsletters can keep customers engaged and informed about new products, services, or promotions.
5. Offer exclusive discounts: Offering exclusive deals to your email list or loyalty program members can make customers feel valued and encourage them to repeat purchases.

Sales Funnel Highlights

• The sales funnel stages are awareness, interest, consideration, intent, evaluation, purchase, and retention.
• (1) Awareness is where potential customers first become aware of your brand and products/services.
• (2) Interest is where you capture their interest and establish a relationship with them.
• (3) Consideration is when potential customers actively consider purchasing your business.
• (4) Intent is where potential customers take specific actions to indicate their intention to purchase.
• (5) Evaluation is where potential customers evaluate their options and decide whether to purchase.
• (6) Purchase is where potential customers become paying customers.
• (7) Retention is where you keep customers engaged and satisfied after the purchase to encourage repeat business and referrals.

Conclusion

The sales funnel is a crucial marketing strategy for small businesses that want to turn potential customers into loyal buyers. By understanding the seven stages of the funnel and using effective techniques for each stage, you can improve your chances of making a sale and building strong customer relationships. It’s essential always to provide value and be genuine throughout the process. And while it’s a serious business, don’t forget to enjoy the journey!