sales funnel is a model for imagining each stage of the customer journey, from when potential customers learn about a brand to when they make a buying.
The top of the funnel represents “awareness” when prospects discover a brand, while the bottom represents “decision” when prospects convert to customers. At each stage, the number of leads shrinks and only a fraction convert in the end.
Why are sales funnels important?
Sales funnels allow businesses to visualize every step prospects take in the conversion process. Each step is a micro-conversion that can be modified to increase conversions in the end; If any of these steps have a higher error rate than expected, they can be analyzed to determine what’s wrong and to test possible improvements.
Funnel tools like Google Analytics help you visualize the flow of customers on your website and identify pages with high bounce rates, showing how many visitors leave the funnel at each step.
How do a sales funnel work?
In a traditional sales funnel, the endpoint is at the top; it’s the entry point, the widest part, and anyone can start from there. Once prospects enter the funnel, they can take action to move further down it, but they can exit anytime.
Each step they take is another step in the funnel, bringing them closer and closer to the point of constriction, the decision point that they hope will be the point of conversion.
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