A sales funnel refers to the process that companies take customers through when purchasing their products or services. It is also referred to as sales process or revenue funnel. Companies that take customers through this process prove to customers that they should trust their products by answering any queries that they may pose. Sales funnel normally have different steps depending on the particular sales model a company decides to use for its products. It is an upside down pyramid which is wider at the top but becomes narrower as the customer reaches the sale. The seven common phases that make the sales process include:
- Awareness Phase. At this stage, potential customers get to know about the product you are selling or service you are offering, what it entails and how it is different from the others. They learn this through the modes of advertisement you use such as TV, radio or even billboards. Your blog also helps them know more since it has more information as compared to an advert.
- Interest phase. Potential customers will show their interest in your product when they go ahead to research about your product. This helps them know more about it and they can make informed decisions when buying.
- Evaluation phase. Prospective customers compare the new product to the others being sold by competitors to know which one stands out among them. This also involves knowing the raw materials used and the price of the product or service.
- Decision phase. After conducting an evaluation, the customer decides which product best suits their needs and is affordable to them. The customer then starts negotiations with the seller.
- Purchase phase. This is the stage where the buyer gets the product or service they want and they pay for it. There are different modes of payment that may be used provided the seller is in agreement.
- Reevaluation phase. This phase mainly involves B2B sales where the customer decides whether they want to proceed with the offer given to them by the seller or not. The customer makes the decision to either renew the contract or not.
- Repurchase phase. The customer has already made the decision to renew the contract and they repurchase the product or service again.
Causes of a Leaky Funnel and the Possible Solutions
- Throwing away the “no’s” within a short time. During the sales process, a customer might object to your product or service but this doesn’t make it the end. There are different reasons for such responses and you should give such customers suggestions to help them reconsider.
- Lack of consistency in follow up. If a client asks you as a sales rep to contact them later, it is wise to do so since you might end up convincing them in future.
- Lack of immediate follow up. Sales reps should be quick to respond to comments or messages sent by clients since the customers might end up settling for other alternatives.