321
If you have ever visited marketing sales courses or the training program at the KROC business school, you would have come across a funnel-shaped image. The upper part of the funnel will be the widest, and as it moves down, it narrows. In marketing terms, this image is called a sales funnel. It forms the core of any marketing sales strategy.
What is a sales funnel?
The sales funnel or marketing funnel, as it is sometimes called, is the process of the client's transition from the "suspicious" (unfamiliar) stage to the "buyer" (conversion) stage. Let's consider a step-by-step example, assuming that you sell computers in the city of Moscow.
Step 1. All people are identified as your "suspects". Some of these suspects may use computers, and some may not. Since you don't know which of these suspects are most likely to buy computers, you send them some sort of message through email, social media, brochures, flyers, etc. to raise awareness of your products.
Step 2. Suspects who express some kind of interest become your "prospects." They may or may not buy computers from you.
Step 3. When potential buyers show positive and definite interest with the desire to buy, they become your "leaders".
Step 4. When customers make a purchase, they become your "customers".
The importance of the sales funnel
1. Determination of prospective clients.
You cannot wander in the dark. There are only a few people who can be your target audience. But you have to tell them about your product and get their attention. A sales funnel can help separate potential customers from other people and ensure that you spend your marketing budget on the right target audience.
2. Attracting clients.
The sales funnel can effectively contribute to the formation of potential clients. You have determined that out of all potential clients, only a few show interest in your product. Thanks to this, you will be able to direct your efforts in the right direction.
3. Sales forecast.
At each stage of the sales funnel, you get an idea of the percentage of potential customers. Thus, you can forecast sales and revenue, as well as change your marketing strategy if the numbers do not meet your expectations.
4. Effective coordination between sales and marketing departments.
Usually marketers and sales departments do not interact well with each other. They blame each other for failures and want to give credit for successes. But the point is that they must work in tandem. With the help of the sales funnel, marketers can understand which customers are converting in the sales funnel so that they can change campaigns. Sales departments can tell marketers what campaigns and content help move leads down the funnel.
