Friends, do you know what is the Sales Funnel? How does Sales Funnel work? Why Sales Funnel is Important for Business? And how to create a Sales Funnel for your business? If you do not know about Sales Funnel then read this article till the end.
In this era of digital marketing, we are faced with many words, one of which is Sales Funnel. In recent times, Sales Funnel is being used in a big way to increase sales in business, almost all businesses and individual products use Sales Funnel for more sales. Sales Funnel increases the sales potential of the product to a great extent.
To get complete information about Sales Funnel, keep reading the article till the end. So let’s start without any delay.
What is Sales Funnel
Sales Funnel is a process by which a potential customer buys a product or service. The sales funnel is also commonly called as purchase funnel. The sales funnel establishes a strong relationship between the company selling the product and the customer, which increases the sales potential.
The sales funnel shows that each sale begins with a large number of potential customers and ends with a very small number, as in the end only the people who actually purchase the product are left.
There are several stages of the sales funnel which are commonly known as the Top Funnel, Middle Funnel, and Bottom Funnel. However, these stages may vary depending on the sales model of the company. Overall, the sales funnel shows the stages a potential customer has to go through till they make the purchase of the product.
What is Meant by Sales Funnel?
You must have seen the funnel whose upper part is very wide and as it moves downwards its width decreases. Similarly, in the Sales Funnel too, there is a large audience in the initial stage and as they move towards buying the product, their number decreases.
How does Sales Funnel work?
To understand Sales Funnel well, we try to understand how this Sales Funnel works. The sales funnel works in 4 stages which are as follows – Awareness, Interest, Desire, and Action. They are also called AIDA (Aida) in short form.
1. Awareness
Whenever a company launches its new product, first of all, it tells people about its product on various platforms, that is, it makes people aware of its product. Through awareness, the company gets to know the market potential which means how many potential customers they will be able to get.
In earlier times, companies used to use TV advertisements, newspapers, market banners, pamphlets, etc. to create awareness of their products. These traditional methods of promoting the product are still used in large quantities today.
Since today’s era is of digital marketing, most companies promote their product by running advertisements on platforms like Facebook Ads, Google Ads, and Solo Ads. The number of audiences is very high in the stage of awareness.
2. Interest
When the company creates awareness of its product, then many of them show interest in the product, that is, they are interested in your product. Whenever you are creating awareness of your product, then you should promote more and more products, only then people will trust you, and will show interest in your product.
Anyone who is interested in the product visits the company’s website by clicking on the advertisement, submitting their name, number, or email address in the form, or subscribing to the company’s newsletter. In traditional marketing, people who are interested in the product contact the company.
In the stage of awareness, the audience is in large numbers but in the stage of interest, this audience gets filtered. For example, if you show an advertisement of your product to 10 lakh people, then only 4 lakh will show interest in the product. You cannot consider people showing interest in the product as your customers, because you do not know whether they will take your product or not.
3. Desire
In the next stage of Sales Funnel comes Desire. Now you have contact details of people interested in the product, so you can create Desire in people to buy your product.
To generate Desire, you have to make a good relationship with the audience. You have to tell the audience how your product is beneficial to them, and why they should buy your product.
Apart from this, you can also inform the audience about offer information, product updates, special discounts, etc. This will increase people’s trust in you and the chances of selling the product will increase.
In this stage the audience gets further filtered, as if 4 lakh people showed interest in the product, then 1 lakh people will have a desire to buy the product.
4. Action
In this stage of the funnel come your customers i.e. the people who buy your product. When you complete the stage of Awareness, Interest, and Desire in Marketing, you finally get your customers. Here the funnel gets smaller. Like if you have created your Desire within 1 lakh people, then only 30 thousand of them will buy your product.
For the rest of the 70 thousand people in whose minds you had created Desire, you can also show them the ad for the Continue product or tell them about the company’s offers, discounts, etc. Due to this, there will be a possibility in the future that out of those 70 thousand, 20 thousand will be converted.
So, friends, this is how Sales Funnel works in digital marketing. You must have seen from the above example how people are getting filtered at every stage and making a funnel. In the end, you are left with only those people who can become your potential customers.
How to make Sales Funnel?
As so far in this article you have seen how effective a Sales Funnel is for your business, let us now know how you can create a Sales Funnel for your business.
To create a sales funnel, you should clearly know who your product is for, only then you will be able to do the right targeting, and show your ads to your potential audience only. Here we have told you the process of creating a sales funnel for business in three steps.
1. Build a landing page
First of all, you have to create a landing page for your product, the landing page contains information about your product. You can give product information to people in text or video form. You have to use this landing page when you run ads online. That is, users will reach your landing page by clicking on the ad.
Along with this, you must put a form on the landing page in which people can submit their name, number, and email. When you have contact details of people, then you can communicate with them for a long time.
2. Generate Leads
As you read in the above point that it is necessary to put a form on the landing page so that you will be able to generate leads. To generate leads easily, you provide some value to people so that their chances of filling the form increase.
You can use Lead Magnate to generate leads. Like you can send a free eBook to the email address of those people who have filled the form. Or if you have any software then you can give a free trial of a few days. If you will provide some value to the people then you will be able to get more and more leads.
3. Build a relationship with the audience
When you have a lead, then the most important point comes when it comes to converting the lead into a customer. Since you now have the email addresses of your target audience, you can mail them information about product offers, discounts, etc. It means to say that you have to create Desire in their mind.
You should send emails to the audience regularly so that you can build a good relationship with them and they can trust you. The better you can connect people to your product, the more your sales will be. So in this way you can also create a Sales Funnel for your business and take the business to the next level.