What is a Sales Funnel? Steps & how to create one 

If you have worked in marketing for a while, you are probably familiar with the term sales funnel. For some, the sales funnel is commonplace and is eagerly thought about and developed, while for others, it is just another obscure marketing term. 

This article aims to clarify some of the significant confusions about the term. So let’s get the digital machete swinging and at least get to grips with the sales funnel basics.

A sales funnel is a series of steps to model a potential customer’s journey from the first contact to closing the deal. The funnel is widest at the top end, from where potential customers are figuratively poured in. 

Potential customers are guided in a clear manner from the first contact to the close of the deal. This entity is called the sales funnel. The better the sales funnel is built, the better it serves the needs of the business.

How does the ‘sales funnel’ work?

The sales funnel consists of different levels, and every marketing professional seems to have slightly different names and definitions for them. The number of levels of the sales funnel may also vary depending on who you ask. But as stated in this article, we will go through it as simply as possible to clarify its fundamental purpose.

Levels of the sales funnel

To understand how the sales funnel works, we should first go through its levels. In the next section, I will describe what I perceive as the most important sales funnel stages.

As I said earlier, some (undoubtedly many) may disagree with me about these levels and their names and definitions. This should not slow the momentum down; rather, the opposite should be true. For example, in this springtime, let’s take the example of an online shop selling barbecues and their Facebook advertising.

1. Reaching out

Of course, the first thing we need to do is reach people interested in barbecue on Facebook. These reached barbecuers create the first level of our sales funnel. 

2. Interest

The next step is to get the grills to perform the desired action. In this case, it’s visiting our Facebook ad online.

3. The purchase decision

Step three is deciding to purchase. Our griller will grill steaks, sausages, and aubergines on a brand new grill in the coming summer. There is still one very crucial step to take, so let’s not rush ahead yet.

4. Trade

In this example, the completion of the trade itself is the final and most crucial stage. Visitors who have decided to buy our product must be convinced of the choice we are offering. 

If our barbecue ends up surfing the wonderful world of the internet and comparing the endless selection of barbecues, the autumn rains will arrive before the first barbecue of that summer is ready.

Now that we have (hopefully) understood the sales funnel levels, let’s go through it as a whole. The first step is to identify who our potential barbecue customers are and how best to reach them. 

Then we think about what kind of advertising we can use to get them interested in our products and click through to our online store.

As soon as the barbecue customer enters, our shop’s function and layout will become apparent. 

To make our barbecue shop appealing and easy to use, it should be easy to navigate so that shoppers feel comfortable and happy to shop there. If all of the above steps have been followed correctly, our mobile phone should beep to inform us of new orders in our online shop. 

Is everything now ready for the sales funnel? Yes and no, the foundations of the sales funnel are in place, but there is still work to be done for those ready to take on the challenge.

Sales funnel 2.0: What it is and how to develop it

To get the most out of the sales funnel, it needs to be constantly improved. At least, in my opinion, the best way to improve a sales funnel is to measure and test it. 

To put it another way, evaluate customers moving through the various stages. Find out where in the funnel they disappear and test what measures we can take to patch up these “leaks.”

A step-by-step guide to sales funnel 2.0

• Calculate how many barbecue-interested people we reach. Conduct testing and developing activities to reach even more people.
• Measure how many of these people we reach show interest in our online store. Let’s test and develop our activities so that as many people as possible find their way to our store.
• Measure how many of those interested make a purchase decision or engage with our shop. Continue testing and developing our efforts to ensure that as many interested people as possible make a purchase decision or engage with our shop.
• Measure how many of the visitors make a purchase decision in our online shop. Testing and developing are necessary to ensure that as many visitors who are interested in our store come to it, and purchase from it.

Therefore, the sales funnel works best when these steps are repeated regularly, each according to the needs and resources of each business. 

Oh, and as a reminder, this is the bear claw version of the sales funnel, i.e., more sophisticated models take into account post-sales customer relationship management and many other essential measures to improve customer satisfaction and business development. 

Facebook, for example, offers guidelines for building sales funnels for you to learn more about them.

Although this text is about Facebook advertising, that doesn’t mean that the sales funnel doesn’t also work for other advertising channels. 

At Kubla, our services such as Google Ads, Linkedin advertising, and more recently, Instagram advertising, which has been snowballing, rely heavily on the principles of the sales funnel.

Finally, dear readers, it’s time for the official Call to Action, a vital component of the sales funnel. If you’ve always wanted to develop or build a sales funnel, feel free to click the “contact us” button below, and we can discuss how we at Kubla could help you.

Contact us