Sales Funnel Stage

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A Sales Funnel Stage is a specific step a potential customer goes through on their journey towards becoming a paying customer.

It’s like a checkpoint in their decision-making process.

Each sales funnel stage represents a hurdle or a chance to influence the customer’s decision as they move down the funnel.1

Visual Representation:

Sales Funnel Stages Visual Representation

Purpose:

The purpose of each stage in a sales funnel is to guide potential customers on their journey from first learning about a product or service to making a purchase decision.

Each stage delivers the specific information and support they need at that point in their journey.2

Typical Sales Funnel Stages

The sales funnel typically has four main stages, but some models might add more:

  1. Awareness (Top of the Funnel – TOFU): This is where people first learn about your product. They might not be looking for solutions yet, but you aim to grab their attention. You might use social media, blogs, or SEO to reach a broad audience.
  2. Interest (Middle of the Funnel – MOFU): People are interested in your brand and might have engaged with your content or signed up for emails at this stage. Here, you provide more specific content like webinars or free trials to keep their interest and address their needs.
  3. Decision (Bottom of the Funnel – BOFU): Potential customers now consider buying from you. They compare you with others. Here, you try to convince them with demos, special offers, or testimonials that your product or service is the best choice.
  4. Action: Finally, the customer buys or takes the action you want. The focus is on making this process smooth, with clear instructions and helpful customer service to ensure the purchase is made.3

Usage:

Sales funnel stages help shape the marketing and sales efforts to guide and impact potential customers’ journeys.

Here’s how they work in different areas:

In Marketing:

  • Planning Ads: Marketers make special plans for each stage. Early on, ads might just introduce the brand. Later, ads could offer deals to get people to buy.
  • Making Content: Early content is general and informative, like blog posts. Later content is more detailed, like case studies, aiming to convince people to purchase.
  • Choosing Channels: Where to post content or ads depends on the stage. Social media is great for initial awareness, while emails are better for talking to people who might buy soon.

In Sales:

  • Picking Leads: The funnel helps salespeople know which people might buy soon so they can focus on them.
  • Talking to Customers: How salespeople talk to potential customers changes depending on the stage. Early talks are more about explaining, while later talks focus on convincing them to buy.
  • Improving Sales: By examining where people drop off, sales teams can determine how to improve, such as changing their message or getting more training.4

Example:

For example, an online software company follows the sales funnel stages for its marketing plan.

In the beginning, at the Awareness stage, they use ads to catch people’s attention.

For those showing Interest and starting to Consider the product, they share detailed guides and free webinars.

The company offers free trials and one-on-one consultations When people seriously consider buying (the Intent and Evaluation stages).

And to seal the deal at the Purchase stage, they make buying easy with a smooth checkout and give special offers to encourage the sale.

Related Terms

References:

1. 5 stages of a sales funnel (plus steps and examples). (n.d.). https://www.indeed.com/career-advice/career-development/sales-funnel-stages

2. The Fast-Track to B2B Sales: A Concise Guide for Beginners. (n.d.). (n.p.): Carthage ABC. https://www.google.com/books/edition/The_Fast_Track_to_B2B_Sales/sPu6EAAAQBAJ

3. What is a sales funnel?. Keap. (2023, December 7). https://keap.com/product/sales-funnel

4. Marketing, P. (2023, April 19). Digital Marketing Funnel Stages. https://www.pathlabs.com/blog/digital-marketing-funnel-stages

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