We know that you have put your heart into starting your business and that you have put just as much effort into promoting your products and services, but if the results are not up to your expectations, it may be that you do not know your customers well.
It is important to know the customer journey that your buyers take and to identify any problematic moments. This will allow you to determine where people are losing interest in your offer. The sales funnel will give you all the tools and data you need to do this research.
What is the sales funnel?
The sales funnel, also known as the marketing funnel, is a visual representation of all the steps a visitor must take before buying a product or service. This process involves them discovering your brand, learning more about your product or service, deciding to buy and then actually doing so. Each of your customers will go through this process.
The origins of this funnel date back to 1910, when the American philosopher John Dewey presented the five stages that consumers go through before, during and after the purchase of a good or service. This buyer's decision process consisted of the following stages: recognition of the problem/needs, search for information, evaluation of alternatives, purchase decision and post-purchase behaviour. Over time, this idea has evolved into the contemporary marketing funnel, which focuses on the different stages from the time people first hear about a company to the time they make a transaction.
Marketing efforts are not about getting people to buy right away. Rather, they start by capturing prospects - potential customers who are interested in the brand. When companies turn anonymous strangers into leads, they draw them into the mouth of the funnel. Then they continue to market to these prospects with the goal of getting some of them to buy.
The key is to create an effective sales funnel to guide potential customers through the various stages of the funnel to the point where they are ready to buy your product or service.
Why do you need a sales funnel?
As a business, your success depends not only on the quality of your offering, but also on how it is presented and marketed to consumers. Everything from the layout of your website to the packaging of your products plays a huge role in the customer journey.
Having a clear view of a customer's journey will allow you to identify the obstacles that are preventing them from progressing through the funnel. Based on this data, you can make changes to remove these barriers and improve your conversion rate, whether it's by making your website more user-friendly, creating a social media campaign or promoting on different channels. This is why the sales funnel is so effective.
What are the stages of a sales funnel?
A basic sales funnel consists of six steps:
1. Awareness raising
This is when customers first discover your brand, and this is where lead generation happens.
2. Interest
Prospects show an interest in your products or services. Your brand begins to connect with these prospects.
3. Consideration
In the thinking phase of the marketing funnel, the prospect is evaluating the options available to them to meet their needs. At this stage, they are already familiar with your offer and your brand.
4. Intent
Prospects move to the intent stage once they demonstrate a clear intention to buy a product or service. This does not mean they will buy right away, but it does indicate that they are ready to buy.
5. Evaluation
Here the potential customer makes the final decision whether or not to buy your product.
6. Purchase
This is where prospects finally decide to buy your product or service.
Another representation of the sales funnel that we use at Bofu is the TOFU-MOFU-BOFU.
- TOFU (top of the funnel) is the top of the funnel, where leads are generated.
- MOFU (middle of the funnel) is the middle of the funnel, where customers are generated.
- BOFU (bottom of the funnel) is the bottom of the funnel, where sales are generated.
Whichever marketing funnel model you use, the most important factor is that your marketing plan is aligned with each stage of the buyer's journey.
Let our experts support you in creating and understanding your sales funnel, helping you to better know your customers and increase your sales. Book your exploratory call now.
