Sales Funnel Explained – Learn How To Increase Your Conversions

Written by Claudio Sabato

Why writing an article to explain sales funnels?Sales Funnel Explained

Because the success of your business depends on your selling technique.

The selling process that you use is what will determine the amount of revenue you will generate for your business.

There are different tools you can use to be able to help you set a profitable selling process.

The main one is an effective sales funnel.

What is a sales funnel?

This is the process used to lead customers to buy their products and services. It is referred to as the revenue funnel because if used correctly it can generate revenue for your business.

Each and every company has a different sales funnel. However, the most commonly used design includes the following phases:

  1. Awareness
  2. Interest
  3. Evaluation
  4. Decision
  5. Purchase
  6. Re-evaluation
  7. Re-purchase

This is a sequence of stages your leads can go through and you should be able to track each one of them.


Because you need to be able to know at which stage of the sales funnel your leads are so you can move them towards your end goal: becoming your customers.

Also, first of all, you need to understand the three types of people that you will be dealing with. You will come across the:

  • Lead: a person who you decide to pursue even if they don’t know about the company and products.
  • Prospect: a person who has contact with your company and is still interested in what you have to offer.
  • Customers: these are people who have already made a purchase from you.

The sales funnel is a tool that you can use to keep the existing customers and attract both leads and prospects to increase your customer base.

If you are curious, here you can see an example of sales funnel I have built.

Sales Funnel Explained…Let’s Go Deeper…

It’s important to understand how a sales funnel should work in order to have a clear idea of the steps that your lead will go through to become your customer:

This is the first phase of the sales funnel. This is the phase in which the prospects and leads will become aware of your products and services.

There are many different tools that you can use to make people aware of your products and services. The social media platforms are the best option for you.

Keep in mind that the tool you use will depend on the type of product and service you provide.

This is where your potential customers are looking for a solution to their problems by conducting product research.

This is the time you capture their interest by providing great content.

In this phase, the prospects and the leads compare the different solutions available before they can make a final decision.

You need to do market research and stay ahead of the competition if you want to convert prospects into customers.

This is where the prospect is making a decision to use your products and services.

To help them make a commitment, you need to provide sales offers.

This is when your product or service is purchased.

Based on the type of product you are providing, your customers can either be one time customers or they become loyal and recurring customers.

At this stage, the customers evaluate the type of service that you provide and decide if they want to proceed using them or not.

If they are interested in your products, then they will re-purchase them.

This is why is always important to make your existing customers happy while trying to attract new customers.

It’s Time to Focus on Your Sales Funnel

I hope the sales funnel explained in this article was useful for you to understand how your customer acquisition process should work. Now you will need to think how you can apply every stage to your product or service.

The secret to increase your revenue is to have an effective sales funnel that is able to bring your leads through the journey above until they become your customers.

This is why it’s so important to optimise your sales funnel and drive targeted traffic to it.

TIP: Driving traffic to a sales funnel that doesn’t convert well will translate into higher marketing costs and bad ROI for you. So always be testing to understand as quickly as you can which version of your sales funnel converts the best.

Feel free to comment and share your experience about sales funnels.

Also, read this article if you want to learn what is the first component you need to build in your sales funnel.

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