What are the stages of a sales funnel?

Original Purchase Funnel

The original purchase funnel has 4 key stages…

  • Awareness – when potential customers become aware of your product or service
  • Interest – when they actively express an interest in what you have to offer
  • Desire – when they know that your product or service is the perfect fit to their needs
  • Action – the moment of purchase

Advanced Funnels

As your business develops and leans more towards recurring purchases, you can expand your funnel by adding additional stages.

The more complex version of the funnel might look like this:

  • Awareness – when potential customers become aware of your product or service
  • Interest – when they actively express an interest in what you have to offer
  • Evaluation – when prospects examine competitors’ solutions and compare their offers against yours
  • Decision – when your offer is shortlisted and it’s time for some negotiation before the final decision is reached
  • Purchase – the moment of purchase, when a prospect becomes a customer
  • Re-evaluation – the customer has been using your product for a while and may periodically look for other solutions that will meet their needs (hopefully, if they’re satisfied with your product or service, they won’t feel the need to look for a different solution)
  • Repurchase – when a customer repurchases your product or service

You should use the individual stages of the funnel as a blueprint for your marketing and sales communication. Monitor the results and optimise your actions to drive more sales in less time.

Why Do We Need a Sales Funnel?

Sales funnels solve one of the biggest problems that companies have, which is creating a system to acquire profitable customers at scale. Being able to build relationships with leads automatically through processes and automation.

Is a sales funnel necessary?

The answer is a resounding yes. Imagine if Shibani decided to go about promoting her webinars blindly without a funnel. She would have no idea how many people have become customers because of her webinars. Not just accountability, there are chances that some of the leads might just get lost in transit.

Is there any reason why you need to measure your sales funnel?

Yes, you’ll have access to the information you need to create more opportunities. You’ll generate more leads (from the right kind of customer) and encourage existing customers to buy more.

In addition, you’ll be able to do all of the above smarter, more efficiently and more effectively.

Can you identify where your sales funnel leaks?

If you’re comfortable with the concept of your sales pipeline being a funnel (where new prospects enter at the top, and “closed” customers fall out the bottom), the next stage is to assume that this funnel has leaks.

That’s because, for whatever reason, not all prospects are going to buy.

If I can measure, can I manage it?

Without robust metrics and analytics, you’re operating blind. It’s almost impossible to make well-informed judgments about how to improve the efficiency of your sales pipeline if you don’t know what is happening at each stage.