The Sales Funnel

The sales funnel illustrates the path that a potential customer takes when purchasing goods or services.

I will assume that we all know what a "funnel" is, but for the benefit of those who don't, a funnel has a wide input point and a narrow output point....meaning that if you cut off the base of a 2 litre cool drink plastic container and turn it upside down you have a "funnel". 

The sales funnel has 3 Main stages, namely;

1.Awareness Stage 

2.Consideration Stage 

3.Desicion Stage 

1.The awareness stage is the 1st stage of the funnel - This is where the potential consumer  learns about the product offering or service. The awareness stage is the first phase of the buyer's journey and is the process of making potential customers aware of your business, its brand, and products or services. (e.g when you see a MTN billboard about a new phone - you become aware  of the "new" product and the business/brand)

2.The second stage is the consideration stage, this is where consumers are "considering" purchasing your product or service but they are still not convinced if it is the right move for them. At this step, the potential customer is a little familiar with your product or service, and is evaluating the problem, its urgency, how it can be solved, and whether it really needs to be solved here and now.

3.The 3rd stage is called the "desicion stage", simply because this is when  the consumer makes a desicion and picks the product that best suits them, their needs and their budget. The decision stage of the sales funnel is when the customer is ready to buy. He or she might be considering two or three options — hopefully, including you. This is the time to make your best offer. It could be free shipping when most of your competition charges, a discount code, or a bonus product.

The reason I need you to understand what the sales funnel is and how it works is because it is imperative to understand the sales process for anyone because everyone is selling something (Even If they are not aware).

Why sales funnels are important? 

Sales funnels allow  micro-conversion that can be optimized to increase conversions in the end; if one of these steps shows a higher-than-expected drop-off rate, it can be analyzed to see what’s wrong and test out possible improvements.

Funnel tools like Google Analytics help you visualize the flow of customers across your website and spot pages with high drop-off rates, displaying how many visitors exit the funnel at each step.

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