You’ve likely come across the term sales funnel often used in marketing.
Have you ever wondered what it means?
A “sales funnel” refers to the progression of customers’ steps from discovering your business and products to making the final purchase.
Here’s an example.
Let’s say you have a brick-and-mortar store. Many potential customers will walk past the door, but a percentage of them will decide to step in.
Of those that walk in, a percentage of them will see products they like and decide to look at them.
A percentage of those who decide to view the products will pick those they like and proceed to the checkout, where they will purchase.
Customers’ steps to buy will be similar, more or less, whether you run a brick-and-mortar or an online store.
But why is understanding the sales funnel important?
Why is a sales funnel still important in 2022?
So here’s the deal.
Understanding the sales funnel helps you know what potential customers think when they are at different sales funnel stages.
Why is this important?
Because now you can develop marketing strategies geared towards pushing the customers towards the next stage until they finally make a purchase.
This also means developing personalized messages tailored towards a client based on which stage they are in the sales funnel.
The stages of the sales funnel in 2022
When prospects first hear of your business, products, or services, they will go through several stages of decision-making until they can finally make a purchase.
Granted, the process may not be the same for every customer. However, they will choose sooner or later based on their interest.
That said, there are four main stages of the sales funnel.
Are you ready?
The awareness stage
Here customers are first learning about your products and services.
This can be through social media ads, your sales team, or various other marketing campaigns that your business has developed.
I’ll be honest with you.
The number of leads who move down the sales funnel will depend on your marketing efforts.
Sometimes customers may go straight into buying a product.
Most times, however, you will need to woo the customer at the awareness stage to encourage them through the following stages.
The interest stage
Now that customers are aware of your products or services, they will enter the interest stage.
Here they will make competitive research comparisons and weigh the options available.
So here’s what you do.
Offer your customers valuable content and information.
However, make sure that the content helps your customers make the right choice BUT doesn’t try to sell. Doing this would likely scare them away.
What happens next?
You establish your business as an expert in the minds of customers.
This then helps build brand trust, which allows them to move over to the next step.
The decision stage
At this stage in the buying process, the customer is ready to purchase.
Keep in mind that they could be interested in a competitor’s products as well.
So what do you do about it?
Add in deals, discount codes, and promos. The goal is to make your products so attractive that customers can’t wait to purchase them.
The action stage
The customer finally buys your product.
Not bad, right?
It may be the final step in the sales funnel in 2022. However, it doesn’t mean that it’s all over.
Yes, there’s more!
Always make sure you have a customer retention strategy in place for them to keep coming back for more.
This may include building customer relations by offering after-sales support, for instance.
Understanding which stage of the sales funnel a customer is in lets you know exactly what is going on in their minds.
This, in turn, makes it possible for you to send marketing messages that are more personalized and tailored to the individual client. This results in more leads going through the sales funnel.