On a macro-level, a sales funnel will start with a large number of potential buyers at the top Based on certain criteria, this pool of potential buyers is reduced to a fewer number of prospects. Towards the middle of the customer journey, the number of prospects reduces to a handful of opportunities, and after the decision-making stage, the sales process ends with a closed-won or closed-lost deal.
Eric Siu is the CEO of digital marketing agency Single Grain, which has helped companies such as Amazon, Uber and Salesforce acquire more customers, and co-founder of ClickFlow, an SEO experimentation tool that helps you increase your Google ranking. He also hosts two podcasts: Marketing School with Neil Patel and Growth Everywhere, an entrepreneurial podcast where he dissects growth levers that help businesses scale. Follow him on Twitter @ericosiu
However, say the customer is evaluating marketing automation programs to help improve the sales funnel they created. Because these programs can require investments of $1,500 a month, they’re likely to undergo a much more careful and thorough evaluation process. They might request free trials of the different systems they’re considering, have online demonstrations with each company’s representatives or view training videos to get a feel for how each system will perform.
As people progress through your funnel, their intent to buy steadily increases. You always lose people with each new commitment you ask for (we refer to these actions “conversions”), but the more people you can get to convert at each step in your funnel, the more sales you will ultimately produce. In marketing, we call this process “widening the funnel.”
When these would-be buyers become interested enough in her products, they request an online demonstration by filling out the form on her landing pages. These requests are routed directly to her salespeople, who, because they’re dealing with warm leads, close roughly 50% of the customers to whom they demo. Molly’s company closes more sales than Norman’s, with fewer salespeople and no time spent on cold calling.
Before you start building your sales funnel, it is essential to have a clear business vision, develop an ecommerce marketing strategy, and then define your target audience to work towards your business growth. If, for example, you are looking at how to create an online clothing store, you need to follow specific steps to develop your business and stay successful.
Matt Ackerson founded AutoGrow (Petovera Inc.) in 2010 as a conversion-focused web design agency. The company has since worked one-on-one with over 500 customers and clients to create their sales funnels. Matt is a graduate of Cornell University. He and AutoGrow have been featured in Techcrunch, Forbes, Inc, Venture Beat, Mashable, and Popular Science among others. He and the team write in-depth articles on digital marketing, sales funnel design, and also offer an advanced funnel training course here on AutoGrow.co
Once the prospect is in the proverbial funnel, you've peaked their awareness. That's the first stage of the funnel. However, getting a prospect aware of you is no simple feat. Depending upon how they've arrived to your website (organically or through a paid ad), those customers might view your funnel differently and your opt-in rates will vary significantly.