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Sales Funnels For Beginners – How Do Sales Funnels Work? Step By Step Example.

December 18, 2017

Having the best product or service is not enough to increase sales. Whether you are a marketing person or a business owner you should know what a sales funnel is and learn how to use them effectively.

What Is A Sales Funnel?

A sales funnel, also called a conversion funnel, refers to the process by which leads are converted to customers. For example, the amount of visitors your company’s website gets might be large, but with leads dropping off at various stages in the conversion process, the converted count will be much smaller than the initial visitor count. There are many services available to create conversion-optimized landing pages, like ClickFunnels.

Stages Of Sales Funnel

1) Awareness

The first stage in a sales funnel is awareness. The prospect will be looking for solutions to his or her problems and find you via search engines or social media.

2) Interest

During this stage, the prospect will find your services useful and show his or her interest by joining the email list or following you on social media.

3) Consideration

In this stage, prospects consider purchasing your services or products. Automated emails can be used to remind prospects about the services.

4) Conversion

The number of prospects who reach this stage will be fewer than those who started at stage 1. This is the state where the sale is completed.

Sales Funnel Example

Let’s say I’m creating a sales funnel for a dentist, this is what the funnel might look like:

Step 1: Awareness

Creating awareness is the first step in any sales funnel. Think about the target audience. Who will visit a dentist? Patients with dental problems, right? How you can reach that target audience? The most effective and best way is to give them something valuable for FREE.

It can be a blog article or an ebook. For example, a blog post about the proper way to brush the teeth may be helpful. The target audience will search for information about brushing teeth and they will land on the website and learn about the dentist who wrote the blog article.

Step 2: Interest

At this stage, I have to collect information about prospects who are really interested. For our dentist example, I would design a landing page using ClickFunnels and use it to get the required audience information. Prospects might be willing to submit their information for a free dental X-Ray.

Step 3: Soft-selling

As I have mentioned in the beginning, it is normal for the conversion rate to be less than initial visitor rate, as prospects will likely drop off throughout the process. To help salvage these drop offs, I will design a special soft-sell lead magnet (without being salesy) to collect information from visitors who did not convert on step 2.

Step 4: Scheduling appointment

Simply growing an email list is not my ultimate goal with this sales funnel. A dentist will need to get more appointments, and that is the sole purpose of the sales funnel. So for this stage I will create an ad for the prospects who are converted in step 2 and step 3 to encourage them to schedule an appointment.

Step 5: Retargeting

If you are observing this process you might find out that leads that drop off during step 4 are high-quality leads. They should be converted into customers since they are interested in the services and reached up to step 4. To try once more to get them to convert, I will retarget them with ads or emails highlighting the reviews and awards received by the dentist. The chances of conversion will be high since the ad is targeted for a specific audience who is already aware of the services.

I hope this example is easy to understand and will help you see how you can apply sales funnels to your own business. If you want to increase sales, you should generate quality leads, nurture them with useful freebies or deals and convert them into customers.

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