Just the desire to sell a product is not enough. To ensure that a customer not only wants to buy but actually makes a purchase, the right actions are necessary. The sales funnel is an effective concept that can lead to success.

What is a sales funnel?

The sales funnel is not a new concept and has been used even before the internet and modern marketing. It represents all the stages a customer goes through from becoming aware of a brand to finalizing the purchase of a product. Currently, there are four stages in the sales funnel:

  1. Identifying the need.
  2. Searching for information.
  3. Evaluating options (alternatives, competitors).
  4. Making a purchase decision.

The Value Ladder – a path for the customer

The value ladder is a path through which potential customers are guided through a website and its offerings. The primary purpose of the value ladder is to organize products based on their price-value ratio. This relationship is visualized as a ladder on graphs. Each rung of the ladder signifies a closer relationship between the brand and potential customers. By directing customers on the value ladder, you can understand their needs, prepare new products and services, and gradually offer customers higher-value and higher-priced products.

Creating the sales funnel

As mentioned earlier, the sales funnel consists of four basic stages. Visualizing them resembles a funnel with a wide top (stage 1) and a narrow bottom (stage 4).

  1. Creating awareness and building brand awareness Generating interest in your products or services is the broadest type of action in the funnel because at this stage, marketing efforts reach every potential user who visits the website. This helps attract them to the site, pique their interest, and begin the process. To generate user interest, use keywords that improve website positioning in search engines, advertise on social media, on niche websites, publish videos on Instagram and TikTok. This stage also involves extensive use of lead magnets (free samples), which can take the form of training, e-books, recordings, free samples, free delivery, or discounts on first purchases. This facilitates the identification of groups that may be interested in the product. The goal is primarily to arouse interest and create a desire for more information.
  2. Engaging customers After capturing attention and bringing customers to the website, they start generating traffic and showing interest in the product/service. Now it’s time to double the interest. More information about the product/service should be presented, regardless of the industry. It’s beneficial when customers start asking about the product, leave their contact information (email, phone), making it easier to personalize the offer and agree to receive newsletters. The collected information should educate the customer about the product/service and make them aware that they won’t find anything better elsewhere.
  3. Lead classification To finalize a purchase, customers can be influenced by various actions. Some may rely on research results, while others may be tempted by discounts and free delivery. Some may be won over by custom-made products, while others may need to be appreciated with an offer made exclusively for them. If the product already has positive user reviews at this stage, they should be emphasized as they inspire user trust. This is also the stage where customer classification (leads) occurs. There are cold leads – people who are not interested yet but could become interested if they receive a special offer; warm leads – interested but still undecided about the purchase, to whom personalized product ads can speak; hot leads – people entirely interested and practically ready to make a purchase, for whom the „buy” button should be present in every ad.
  4. Sales The last, narrowest stage of the sales funnel. After transitioning from generating interest to genuine attention, the customer makes a purchase. The purchase should be easy and elicit positive feelings. The sales mechanism should be simple and clear to avoid discouraging the customer from making further purchases. Notifications about purchase updates (shipping stages) should be sent promptly. Offering discounts on future purchases or points for the current purchase, to be used for subsequent purchases, is advantageous as it stimulates customer return.

Summary – advantages of the sales funnel

It is clear that the sales funnel makes marketing easier. Basing an entire campaign on it is beneficial for both beginner and established companies. Individual stages are easier to analyze and update with respect to the customer. The brand starts to exist online, generates interest, and establishes a connection with customers. It’s also important that the sales funnel can be audited continuously at every stage. This is facilitated by AI, web creators, and marketing agencies. The audit helps identify weaknesses, especially in the value ladders and leads stages, improve them, and reach a larger group of potential customers.

We invite you to use our services – we can conduct an audit of your ongoing activities or propose a campaign based on the funnel!

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